Many life insurance companies are fighting to get a 3% return on 5 year paper while keeping their portfolios safe. Many companies have huge baskets of in force business so they can take a hit now, assuming rates will go up. But, if this continues, I am of the opinion that MYGA rates will retreat. Or, there will be more MYGAs sold with a death benefit equaling cash value minus surrender charges. So, what should you do?
I suggest that you start calling all your policyholders and rescue their CD money and give them a safe spot. As I am writing this, we offer 5 year MYGAs that are providing your client with a 5 year guarantee at 3%, liquidity, and full account value at death. We are in testy times and these rates are surely going to decrease if this continues. Call The Ohlson Group today, or book an appointment, and get the info on great MYGAS, and, please pray for the people of Ukraine.