In response to an earlier reviewer, the max surrender charge at the beginning of this contract is 18 percent.
Pretty sure this 18 percent fee lasts for more than 1 year.
This is a big number.
Must be at upper range of this product type.
MNL Capstone Series offered by Midland National
| Introduction | |
|---|---|
| Type of Product | Indexed Annuity |
| Product Name | MNL Capstone Series |
| Offered by | Midland National |
| Company Info | Midland National is a provider... read more |
| Contact Information | |
|---|---|
| Company Offering | Midland National |
| Company Type | Insurance Company |
| Phone Number | 877-586-0240 |
| Website | www.midlandannuity.com |
| Talk to a Financial Advisor | |
|---|---|
| Contact Information | Connect with a Financial Advisor |
| Reviews and Ratings | |
|---|---|
| Average Review | 2.5/5 from 4 Reviews |
Product Ratings and Reviews
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Pretty sure that the max rate on the non-guaranteed options for the Capstone series is 3.05. The cap on the guaranteed minimum rate maxes out at 2 percent. How can someone justify the costs and fees that come with an indexed product when their upside potential is so limited? Indexed and fixed products are often marketed under the "safe money" premise. Given liquidity restrictions and expenses, the products seem to be anything but safe. While something between 2 and 2.05 percent (gross--not including fees) might be attractive relative to other fixed income options at the moment, it just cannot make sense when considering surrender charges and other expenses embedded in the product.
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I tend to agree with the review on the long surrender period. Surrender charges are one of the main criticisms of fixed indexed products. People think they are getting full downside protection with some appreciation potential. They are, but at a cost. In the case of this product, that cost is a set of fees that last for 14 years. The max issue age of this product is 75 years old. How could someone sell an indexed product to a 74 year old person who would have restrictions on access to and liquidity of these funds for up to 14 years? I can see how people get into trouble selling these products. |
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I know this is a popular fixed indexed product. How many people can afford to have their funds locked-up for 14 years. That is the length of time that the surrender period lasts for this series of indexed products from Midland National. I wonder how many existing customers and prospects know that their funds are subject to surrender fees for a decade plus. Great products from a solid company, but talk about liquidity issues. Anyone know what the industry standard is for surrender charges for fixed indexed products? I would imagine that 14 years has to be towards the upper end of the spectrum. Must be high commissions on this product that are funded by the surrender fees.
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