Why it earned this rating
Our assessment
LiveWell Preferred earns a good rating because it delivers a well-rounded 7-year FIA from an A+ carrier: four index choices, multiple crediting methods, a clean 10% free-withdrawal provision, and a credible optional income rider with a 10% simple roll-up. What keeps it from a higher tier is the front-loaded surrender structure — 8% flat for the first three years is steeper than the peer median — and the fixed account yields (2.05%–2.45%) that provide limited fallback if index years disappoint.
The short version
This is a 7-year principal-protected annuity from Midland National, a subsidiary of Sammons Financial Group rated A+ by A.M. Best. You get access to four different indices, several crediting methods, and the option to attach a guaranteed lifetime withdrawal benefit if income planning becomes the priority later. The 7-year commitment is real — the 8% surrender charge holds flat through year three before stepping down — but buyers willing to stay the course get a clean, full-featured accumulation contract from a financially strong carrier.
Key facts
The full review
Is Midland National LiveWell Preferred FIA 7-Year a Good Annuity?
Yes, for the right buyer. If you want a principal-protected accumulation vehicle from a top-tier carrier, do not need liquidity beyond 10% per year, and value having four index choices rather than one or two, this is a competent product. It is less compelling if your primary goal is maximum accumulation potential — the cap rates and participation rates are reasonable but not notably aggressive — or if you want a shorter commitment period.
Why Someone Would Buy This Annuity
The rational case is straightforward: you want to protect principal, you want more upside potential than a MYGA or fixed annuity, and you want to keep income rider optionality open without paying for it yet. Midland National's A+ rating adds genuine comfort for buyers who care about carrier strength. The $10,000 minimum also makes this accessible to buyers who are not deploying a large lump sum.
Who This Annuity Is Best For
I think this product fits best with someone in their late 50s to mid-70s who has a 7-year horizon before they need income or access, is in or near retirement but not yet certain about guaranteed income needs, and wants accumulation first with an income backstop available if circumstances change. Qualified money (IRA, 401k rollover) is a natural fit given the RMD-friendly free-withdrawal terms. It is less suited to someone who wants a straightforward short-term rate lock, needs meaningful liquidity before year four, or is already committed to a lifetime income strategy.
What You're Really Buying Here
You are not buying stock market exposure. You are buying a principal-protection contract that uses index formulas to determine how much interest may be credited each year — but those formulas guarantee you will never lose principal due to index performance. The four index options and the mix of crediting methods (cap, participation rate, fixed) give you more than one dial to turn, but the contract is still fundamentally an insurance product, not an investment. The upside is capped or participation-limited; the downside is protected. That is the trade.
How the Core Feature Works
LiveWell Preferred offers four indices: the S&P 500, the S&P 500 Low Volatility Daily Risk Control 5% Excess Return, the Nasdaq-100 Volatility Control 12% Index, and the Fidelity Multifactor Yield Index 5% ER. Across those indices, you can choose from annual point-to-point with a cap, annual point-to-point with a participation rate, two-year point-to-point with a participation rate, or a fixed account.
In practice, the cap strategies credit interest up to a ceiling — rates in the 8.75%–11.25% range as of the effective date in the spec, depending on which index and which premium band you fall into. The participation-rate strategies credit a stated percentage of the index gain, ranging from roughly 35% to 210% depending on the index. The two-year point-to-point option gives an extended measurement period, which can smooth out short-term volatility. The fixed account (2.05%–2.45%) is available as a no-surprise anchor. Rate banding is based on account value rather than premium paid, which is worth tracking as your balance grows.
Why the Secondary Feature Matters
The optional LiveWell Income for Life rider (GLWB) is the secondary feature worth understanding. It costs 1.20% of the GLWB benefit base annually and provides a 10% simple interest roll-up on the benefit base during the deferral period. That means each year you defer income, the benefit base grows by 10% of its original value — a straightforward accumulation formula that is easier to model than compound-interest alternatives.
What makes this matter is the optionality. You do not have to add the rider at issue. If your retirement income picture becomes clearer and guaranteed income starts to look important, the rider gives you a path to that. The 1.20% fee is on the higher end of the FIA income rider market, so this only makes sense if you actually intend to activate withdrawals. A buyer who adds the rider and never turns on income is simply paying a fee to hold an option they never exercise.
Liquidity and Surrender Schedule
This is a 7-year commitment. The surrender schedule starts at 8% and holds there for the first three full contract years before stepping down: 8% / 8% / 8% / 7% / 6% / 5% / 4%, then 0% in year eight. That front-loaded structure is steeper than many 7-year FIAs, which more typically step down starting at year two or three.
A Market Value Adjustment (MVA) can also apply to withdrawals taken during the surrender period above the free amount. The MVA adjusts the surrender value based on changes in interest rates since you bought the contract — it can move in your favor or against you depending on rate direction. In a rising-rate environment, the MVA would reduce what you receive; in a falling-rate environment, it would increase it. Either way, it is an additional variable to understand before taking early withdrawals.
The free withdrawal provision (10% of beginning-of-year account value after year one) is standard for the peer group and RMD-friendly by design. Nursing home confinement can also trigger penalty-free access, subject to contract terms and state availability.
Fees and Tradeoffs
The base contract carries no explicit annual fee, which is the standard design for this product type. The two optional riders do carry fees: the GLWB income rider at 1.20% of the benefit base annually, and a GMDB enhanced death benefit rider at 0.35% annually. Neither is mandatory. A buyer who wants a clean accumulation contract with no rider fees can have that; a buyer who wants income guarantees and an enhanced death benefit at the same time is looking at up to 1.55% in annual charges, which is meaningful drag on a fixed-indexed account.
The structural tradeoffs are the more important ones. Cap rates and participation rates are not contractually locked for life — they reset annually (or every two years for the two-year strategies). If the carrier reduces caps or rates at renewal, the crediting formula becomes less favorable. The fixed account's modest yields leave limited downside cushion in years when index strategies credit zero.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Indexed Annuity |
| Surrender Period | 7 years |
| Issue Ages | 0-85 |
| Minimum Premium | $10,000 |
| Indices | S&P 500, S&P 500 Low Volatility Daily Risk Control 5% Excess Return, Nasdaq-100 Volatility Control 12% Index, Fidelity Multifactor Yield Index 5% ER |
| Crediting Methods | Annual point-to-point with index cap rate, Annual point-to-point with participation rate, Two-year point-to-point with participation rate, Fixed account |
| Free Withdrawal | 10% of account value annually after first contract year; penalty-free withdrawals available without surrender charge |
| MGSV | 87.5% @ 1-3% |
| Death Benefit | Upon death of owner, Midland National pays out the full accumulation value as the standard death benefit, or enhanced death benefit via optional GMDB rider (guarantees minimum 8% simple interest rollup to 200% of premiums or age 85) |
| Income Rider | Optional |
| Income Rider Fee | 1.20% of GLWB value annually |
| Premium Bonus | None |
| Availability | Variations approved in CA, DC. Not approved in ID, NY, OR. |
Carrier snapshot
Legal Entity: Midland National Life Insurance Company
Parent: Sammons Financial Group
A.M. Best Rating: A+
Midland National is a long-established carrier within Sammons Financial Group, a privately held company that has been operating in the insurance space for decades. The A+ rating from A.M. Best reflects strong financial stability — this is not a small or newly capitalized carrier. Sammons' private ownership structure also means the company is not subject to the quarterly earnings pressures of publicly traded insurers, which can matter over a 7-year contract horizon.
Final take
LiveWell Preferred is a competent 7-year FIA from a strong carrier. The four-index menu and multiple crediting methods give it more flexibility than basic designs, and the optional income rider with 10% simple roll-up is a genuine feature rather than marketing decoration. The A+ rating from A.M. Best adds real confidence.
The main reasons to hesitate are the front-loaded surrender schedule and the MVA exposure. Three full years at 8% with an MVA is a genuine constraint — if your circumstances change in the early years, the exit cost is real. The fixed account yields are also modest, which limits the floor when index years produce nothing.
For a buyer with a clear 7-year horizon who wants principal protection, index flexibility, and the option to add income later, this is a solid choice. For someone still uncertain about their time horizon or who already knows income is the priority, a different structure — perhaps a built-in income FIA — might serve better.