The Standard Introduces Multi-Choice Annuity

PORTLAND, Ore. — Jan. 12, 2021 — Today, The Standard announces its first of several new annuity products launching this year. The Multi-Choice Annuity MCA is a single-premium deferred annuity that offers features to optimize growth potential, along with four liquidity options. It is now available in every state in which The Standard offers annuities. The Standard developed this new solution to meet client needs. Known as a long-standing Multi-Year Guarantee Annuity or MYGA provider, The Standard plans to expand MYGA offerings throughout 2021.

“We will continue to expand our commitment to the industry by offering value with new and competitive products,” said Rich Lane, vice president of Individual Annuities sales and marketing at The Standard. “Annuities must evolve as market conditions change, and MYGAs have increased in popularity because of the certainty they create. Our goal is to continue to expand our offerings to meet clients’ most-pressing retirement needs. With the MCA, clients have the flexibility to select a withdrawal option that matches their liquidity and interest rate preferences.”

The Standard’s MCA is a single-premium deferred annuity with the benefits of tax-deferred growth and a guaranteed rate of return of three, five or seven years. At the end of the term, clients may withdraw money or automatically start a new guaranteed-rate period. Four liquidity options allow clients to select the optional withdrawal provision that best meets their financial needs, including: no optional withdrawal provisions, interest only, 10% annual withdrawals and10% annual withdrawals with Guarantee of Principal. With these choices, the MCA enhances the MYGA portfolio.

The MCA also provides unique tax benefits. Taxes on gains are delayed until the client withdraws funds from the account. Most clients don't begin taking withdrawals until after they are retired and when they are usually in a lower tax bracket. As a result, interest has been accumulating on principal, earnings and money that would have otherwise been paid in income taxes, and the taxes clients do pay may be at a lower tax rate. The MCA is also known for its triple-compounding nature, earning interest on the initial principal, the interest itself and the tax savings (the amount clients would have paid as income taxes). As deferred annuities are designed to be long-term retirement savings tool, the MCA is an effective option as part of a retirement strategy.