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Multi-Year Guaranteed Annuity (MYGA)

Multi-year guaranteed annuities1 are a type of fixed deferred annuity. With a fixed deferred annuity, you make one or multiple payments2 to your insurance company, which in turn, gives you a fixed return on your contributions, regardless of market fluctuations.

A MYGA allows you to take advantage of a high interest rate environment while avoiding the risks of market volatility. You'll know exactly what rate your money will grow at for the entire length of the term period you choose.

What are multi-year guaranteed annuities (MYGAs)?

A MYGA allows you to choose from multiple term periods, with the interest rate guaranteed for the length of the term. Amica currently offers three-, five- and seven-year terms, with a minimum $5,000 contribution.

MYGA features

Why a multi-year guaranteed annuity?

  • Fixed interest rates – An Amica MYGA offers competitive interest rates that are fixed, which means they won't vary throughout the term, regardless of market or economic conditions.
  • Tax-deferred growth – With a deferred annuity, you can earn more than in a taxable account with the same interest rate. You delay paying taxes on your investment and earnings until you initiate withdrawals. At that point, you might be retired and fall into a lower tax bracket.
  • Guaranteed income – With a MYGA, you can select a settlement option which guarantees steady income payments throughout your retirement.
  • Flexible choices – You choose a plan for contributing and receiving your money that best fits your lifestyle.
  • Avoid additional fees – An Amica MYGA doesn’t have any front-end sales charges, service fees or annual administrative costs.
  • Stability – 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?

While MYGAs may resemble Certificates of Deposit, there are a few key differences: 

  • With a CD, you pay taxes on interest earned each year. MYGAs give you the benefit of tax-deferred growth, allowing your earnings to accumulate faster.
  • With a CD, you may be penalized for withdrawals made before maturity. An Amica MYGA allows for a penalty-free withdrawal up to 10% after the first year.

Term and renewal options

With three-, five- and seven-year term periods, MYGAs give you the flexibility to choose a plan 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, but will be in line with the rates on new contracts. If you choose not to renew your MYGA, you can surrender your contract without charges.

Tax considerations and withdrawals

The tax benefits of MYGAs are significant. Your money will grow tax deferred, and income taxes are only applied to your annuity payments.

After the first year, Amica allows you to withdraw 10% of your annuity value 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.

Is a MYGA with Amica right for you?

MYGAs benefit those who:

  • Have already retired or are close to retirement.
  • Are looking for an investment that will protect their principal from market fluctuations.
  • Desire the stability provided by fixed interest rates for a specified period.
  • Have long-term financial goals.

For more information, check out our downloadable FAQ sheet.

At Amica, we're here to help you feel confident in your next chapter.

Call 800-234-5433

to speak with an Amica annuity representative who will help you understand your options.

Policies issued by Amica Life Insurance Company. NAIC No. 722222.

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.

1 Standard form number ICC21 MYGA-01. The annuity and some features may not be available in all states.
2 Additional contributions are only allowed during the first year of the contract.
3 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.

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