LiveWell Preferred FIA 5-Year review

It depends on what you are trying to do. For someone who wants a shorter-commitment FIA with principal protection and optional income flexibility, it is a reasonable choice. The A+ carrier, the $10,000 minimum, and the 5-year surrender schedule are all buyer-friendly. For someone who wants maximum accumulation and no rider overhead, or who wants a longer runway for growth, this is not the strongest option in the peer group.

The practical case for LiveWell Preferred 5-Year is flexibility within a defined commitment window. Someone in their late 50s or early 60s who is not yet sure whether they will need income from this money in five years can buy the product, let the account value grow with index-linked interest, and decide later whether to activate the GLWB rider. The optional Legacy Protector death benefit rider adds another layer for buyers who want to use the product for estate purposes. The $10,000 minimum is also lower than many peer FIAs, which makes the product accessible to buyers who are not deploying large lump sums.

I think LiveWell Preferred 5-Year works best for buyers in their late 50s to early 70s who want a medium-term holding with principal protection, have a relatively modest premium to deploy, and value the optionality of adding income or estate features down the road without having to switch carriers. It is less attractive for buyers whose sole goal is maximum accumulation — those buyers may find the rider fee structures add cost without immediate benefit — and it is not a strong fit for buyers who need liquidity within the first year or who want a longer growth runway before making retirement income decisions.

You are not buying stock market exposure. You are buying an insurance contract that credits interest based on the performance of selected indices, with a floor at zero in negative years, and a ceiling defined by caps or participation rates. In plain terms: if the S&P 500 goes up 15%, you earn the credited rate up to whatever cap applies; if the index drops 20%, you earn zero but lose nothing to the market. That protection has a cost — you give up some of the upside to finance the floor. The fixed account option is always there as a backstop if you want certainty over any growth potential.

LiveWell Preferred 5-Year offers three crediting methods — Annual Point-to-Point, Biennial Term End Point, and a Fixed Account — applied across four index choices: the S&P 500, the S&P 500 Low Volatility Daily Risk Control 5%, the Nasdaq-100 Volatility Control 12%, and the Fidelity Multifactor Yield Index 5% ER. The rate banding matters here: Band 1 applies to accounts below $100,000, Band 2 to $100,000–$249,999, and Band 3 to $250,000 and above, with better caps and rates at higher premium levels.

The volatility-controlled and risk-controlled indices deserve a note. These are not the raw S&P 500 or Nasdaq-100 — they are modified versions designed to reduce volatility, which typically allows the carrier to offer higher caps or participation rates. That can look appealing on paper, but lower-volatility indices tend to produce lower raw returns in strong markets, so the higher cap or participation rate does not always translate to higher credited interest than a standard capped S&P 500 strategy. Ask for historical performance data on the specific indices before placing a decision on those strategies.

As of April 2026 rate sheets, participation rates range from 30% to 200% depending on index and crediting method, caps run 8.5%–11%, and certain strategies carry a 5% spread. The fixed account pays 2.05%–2.35% depending on the band. Note that cap rates, spreads, and participation rates on this type of product are not locked at issue — they are reset at renewal, typically annually, at the carrier's discretion within contract minimums.

The secondary feature is the dual optional rider structure. The LiveWell Income for Life GLWB rider adds a benefit base that grows at 7.5% simple interest per year up to 200% of premium, at a cost of 0.85% annually. The Legacy Protector Rider III adds an enhanced death benefit that accumulates premiums at 8% per year to 200% of premium or age 85, whichever comes first, for 0.35% annually.

What makes this worth noting is the asymmetry between the two riders. A buyer who wants income eventually pays 0.85% whether or not they ever turn income on, so the economics only work if the income activation actually happens. The death benefit rider, at 0.35%, is more modestly priced and may make more sense for a buyer who wants to leave something to heirs without converting to income. Neither rider is required, but once added, both fees apply annually to the account value — which is a meaningful drag on accumulation if activation never happens.

LiveWell Preferred 5-Year is a 5-year commitment, but not a total lockup. Starting in contract year two, you can withdraw up to 10% of your account value annually without surrender charges — RMDs can also be taken without penalty if they exceed the 10% amount. The first contract year has no penalty-free access, so anyone who might need money in the first 12 months should look elsewhere.

The surrender schedule starts at 8% in years one through three, drops to 7% in year four, 6% in year five, and then clears to zero in year six. A Market Value Adjustment — MVA — can also apply to surrenders during the charge period, meaning the effective penalty can move up or down depending on interest rate conditions at the time. In a rising-rate environment, MVA typically makes surrenders more expensive; in a falling-rate environment, it may work in your favor. Treat this as a 5-year commitment and the penalties become a non-issue.

The base contract carries no annual fee. Costs come in through the optional riders. The income rider runs 0.85% annually — on top of whatever the base contract does — and the death benefit rider adds another 0.35% if you elect it. If you take both, the total drag is 1.20% annually before considering caps or spreads on the crediting strategies themselves.

The structural tradeoff is straightforward: caps limit upside, spreads reduce credited interest on certain strategies, and optional rider fees reduce net account value growth regardless of whether the rider features are ever used. This is not unusual for an FIA with optional riders — it is the design — but buyers should be clear-eyed that adding an income rider to a product primarily being used for accumulation is a relatively expensive way to buy an insurance option you may not activate.

Legal Entity: Midland National Life Insurance Company

Parent: Sammons Financial Group

A.M. Best Rating: A+