What is a Multi-Year Guaranteed Annuity (MYGA)?
A multi-year guaranteed annuity (MYGA)1 is a type of fixed deferred annuity. MYGAs offer competitive, guaranteed interest rates, protecting your investment from risks of market volatility. You’ll know exactly what rate your money will grow at for the entire length of the guarantee period you choose.
MYGA the Amica way
A MYGA guarantees a fixed interest rate over a certain number of years. Amica currently offers three-, five- and seven-year guarantee periods, with a minimum $10,000 contribution. Subsequent purchase payments are only permitted during the first 60 days of the contract, with the potential of up to $1 million2 total purchase payments without Amica approval.
Why should I choose a multi-year guaranteed annuity?
An Amica MYGA offers competitive interest rates that are fixed, which means they won't vary throughout the guarantee period, regardless of market or economic conditions.
With a deferred annuity, you delay paying taxes on your investment and earnings until you initiate withdrawals.
With a MYGA, you can select a settlement option which guarantees steady income payments throughout your retirement.
You can choose a guaranteed duration and set a plan for receiving your money that best fits your lifestyle.
An Amica MYGA doesn’t have any front-end sales charges, service fees or annual administrative costs. However, there are surrender charges for early withdrawals above the annual free withdrawal maximum.
Amica has received an A+ (Superior) rating from AM Best,3 a leading authority on insurance company financial stability.
How does a MYGA compare to a financial institution CD?
MYGAs may resemble Certificates of Deposit but there are a few key differences.
| With a CD | With an Amica MYGA |
| Pay taxes on the interest earned each year. | Tax-deferred growth, allowing your earnings to accumulate faster. |
| You may be penalized for withdrawals made before maturity. | Allows for a penalty-free withdrawal of up to 10% of accumulated value4. Free withdrawal amount is only available beginning in the second contract year |
Is a MYGA right for you?
- You have long-term financial plans to account for
- You want to protect your principal from market fluctuations
- You desire the stability of fixed interest rates over a specific period
Other annuities to consider
A MYGA isn’t right for everyone. But that doesn’t mean an annuity isn’t right for you.
| I want the flexibility to make contributions over time | I want to start receiving payments right away |
| Consider an Amica Flexible Premium Deferred Annuity (FDPA) | Consider an Amica Single Premium Immediate Annuity |
Considerations of a MYGA
It’s important to consider the guarantee
Tax considerations
The tax benefits of MYGAs may be substantial. Your money will grow tax deferred, and income taxes are only applied to your annuity distributions. After the first year, Amica allows you to withdraw 10% of your annuity value annually without penalty. Surrender charges may apply for withdrawals above 10% during the guaranteed period. If you decide to withdraw money from your annuity before the age of 59½, you may be subject to a 10% early withdrawal penalty tax. It may be best to speak with a financial or tax professional before making any withdrawals.
If your MYGA is funded by non-qualified funds, like money from your savings account that has already been taxed, then you would only pay taxes on interest when withdrawn.
Guarantee period and renewal options
With three-, five- and seven-year periods, Amica MYGAs give you the flexibility to choose a guarantee period that best fits your needs.
When your guaranteed period ends, you can choose a new period, depending on availability. The interest rate you receive may vary from your previous rate. If you choose not to renew your MYGA, you can surrender your contract without charges at the end of the guarantee period. You can also choose to start receiving your income in installments at that time.
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Policies issued by Amica Life Insurance Company. NAIC No. 72222.
The MYGA (standard form number ICC21 MYGA-01) is a fixed deferred annuity contract issued by Amica Life Insurance Company. The annuity and some features may not be available in all states.
Current rate for the three-year guarantee period assuming an initial premium payment of at least $50,000. Current interest rates are subject to change without notice at our discretion and are effective annual rates, and may not be available in all states. Rates will not be lower than the Guaranteed Minimum Interest Rate (GMIR), which resets at the start of each guaranteed period, but will never be less than the minimum required in your state. Guarantees are based on the claims-paying ability of Amica Life Insurance Company.
Standard form number ICC21 MYGA-01. The annuity and some features may not be available in all states.
Additional contributions are only allowed during the first 60 days of the contract.
A+ (Superior) is the second highest of 13 company ratings. Ratings range from A++ (Superior) to D (Poor). AM Best's ratings measure an insurer’s financial strength.
Withdrawals prior to age 59½ may be subject to a 10% IRS penalty. Consult your tax advisor for details.