What Is a Multi-Year Guaranteed Annuity, and Is It Right for You?
June 18, 2026
As the year reaches its halfway point, June offers a natural opportunity to review your retirement plan and make any needed adjustments. If market uncertainty has you looking for a more predictable approach, a multi-year guaranteed annuity (MYGA) may be worth considering.
So, what exactly is a multi-year guaranteed annuity, and could it be right for you?
What Is a Multi-Year Guaranteed Annuity?
Unlike variable or fixed indexed annuities, which are linked to market performance, a MYGA offers a guaranteed interest rate for a specific number of years — typically three to 10 years. You should consider a MYGA a financial vehicle, not an investment.
With a 10-year MYGA, that rate is guaranteed for 10 years. With a five-year MYGA, such as the option from 1891 Financial Life, the rate guarantee lasts for five years. Because it protects your savings from rate fluctuations, it’s a great solution for those who prefer protection and predictability over surprises.
A fixed annuity, like a MYGA, means you won’t have to weather market swings or guess what interest rates are going to do next. Cash-flow planning is easy because you’ll know the value. Earnings in a MYGA grow tax-deferred, which can be an additional advantage for those not yet drawing income.
How Does a MYGA Work?
You open a MYGA by making a lump-sum premium payment. The insurer then credits a fixed interest rate for the agreed-upon term. At the end of the term, you can withdraw, renew, or roll into another annuity.
A surrender period is the length of time you agree to keep your money in the annuity. Many MYGAs allow owners to withdraw a portion of their contract value each year — often up to 10% — without surrender charges, although withdrawal provisions vary by contract.
Many people often confuse MYGAs (insurance products) with certificates of deposit, or CDs (bank products). It’s worth noting that they are taxed differently: Unlike a CD, growth in a MYGA is tax-deferred until withdrawal.
1891 Financial Life offers a multi-year guaranteed annuity designed with flexibility and members’ financial well-being in mind.
Is a MYGA Right for You?
Is a MYGA a good investment? A MYGA tends to be a strong fit for the following:
- People within five to 15 years of retirement who want to protect a portion of their savings
- Those who’ve maxed out other tax-deferred accounts
- Anyone who loses sleep over market volatility and wants a predictable alternative
On the other hand, a MYGA may not be the ideal fit for someone who needs immediate liquidity or those with longer time horizons who can absorb market risk.
You can think of a MYGA as a “set it and know it” financial vehicle. You know exactly what you’ll earn and when, and there’s something comforting in that level of stability and predictability. If your mid-year review has you craving more certainty in the second half of the year, a MYGA is definitely worth a conversation.
Is It Time to Add Certainty to Your Retirement Plan?
A MYGA is a simple, predictable financial vehicle that should complement an existing retirement strategy — not replace it. You can think of it as adding an extra layer of stability to your portfolio.
If you value long-term peace of mind and lifetime income, 1891 Financial Life’s annuities are here to help you start laying the foundation for your retirement today.
At 1891 Financial Life, we specialize in providing tailored insurance solutions that cater to diverse needs. Our team is equipped to help you navigate these challenges with expertise and compassion. Contact us today for personalized assistance and to explore whether a MYGA fits your situation.
About the Author
Thomas Adamson, CLU, ChFC, FICF, AMTC, CFFM
Thomas Adamson launched his insurance career in 1968 with New York Life and developed skills in management, marketing, recruiting, training, and development of new and experienced agents.
Tom has been involved in fraternal Home Office Sales, Marketing, Product Development, and Training for the last 20 years. He truly appreciates the opportunity to blend his faith with his profession. He has been an advocate for the agent in the Home Office and brings a unique perspective to marketing and product development. Tom is also involved in philanthropic efforts and community-based activities. As a dedicated parent and grandparent, it has been his passion to volunteer on behalf of children.
Tom’s mission is to “provide an environment for agents to successfully design insurance plans that give our clients and members the financial peace of mind they deserve.”
About 1891 Financial Life
Our culture is about looking out for you, for others, for family, for the community. That is how we go “Beyond Life Insurance.”
At 1891 Financial Life, we don’t just sell policies, we offer possibilities. We take pride in giving back to the communities we serve by providing quality and comprehensive insurance solutions. We are a not-for-profit life insurance Society, which means the sales from these financial service products help fund member benefits, along with social, educational, and volunteer programs designed to respond to community needs. Our commitment to excellence has been recognized by Forbes, naming 1891 Financial Life among “The World’s Best Life Insurance Companies” in 2023 — and for the second time, as one of “America’s Best Life Insurance Companies,” ranking #1 in Term Life Insurance for 2026.
Our portfolio is extensive, ranging from various life insurance policies to our annuities to support your financial needs, no matter what stage of life you’re in.