Hybrid Annuity vs MYG Annuity | To gamble or not to gamble? This is now a question on a MYG Annuity!

I feel agents and their clients should understand the full aspects of the marketplace and the guaranteed math behind a fixed annuity guarantee!

Annuity Theory:

Current 5 Year MYGA Rate = 5.25% with liquidity vs 4.00% Hybrid~
$100,000 @ 5.25% = $129,154.79
$100,000 @ 4.00% = $121,665.29

- No bonus and MYGA client earns $7,489.50 more than MYGIA (7.49% of premium)

- With 14% bonus, on premium, MYGIA earns $6,510.50 more than MYGA (6.51% of premium)

I see the real value of the possible bonus is 9.54%
Example:
Current S&P 500 = 33,852.66
25% increase is 8,436.16 and will put S&P at 42,315.82

Risk/Reward
Does a client risk a guaranteed 7.49% of gain for a possible extra gain of 9.54%? Hey maybe!

Example - S&P 500 = 33,852.66
25% increase is 8,436.16 and will put S&P at 42,315.82

Very happy to see a company is trying new stuff! There has not been much creativity in the MYGA space in some time, so this is a good thing.

Not sure how many traditional MYGA buyers are this type of gambler but if the commission is better than a MYGA I am sure it will be sold to them anyway.

Not sure who asked for this product as MYGA are mostly sold as a commodity. Maybe a BD/IMO, so they can require advisors to go though BD since it has an Index component?

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