Why it earned this rating
Our assessment
Oak Advantage 3-Year is a clean, well-structured MYGA from one of the stronger carriers in the fixed annuity market. The 5.25% guaranteed rate and A+ carrier rating are its clearest strengths. What keeps it at a 4.0 rather than higher is the restricted liquidity — no principal access in the free-withdrawal window — combined with an MVA that can make early surrenders more expensive than the stated charge alone.
The short version
This is a three-year guaranteed-rate annuity for people who want predictable, tax-deferred growth with no market risk. Think of it as a CD-like commitment with better tax treatment and the backing of a strong insurance carrier. The tradeoff is that you are trading access to your principal for those three years in exchange for a locked yield. If you can make that commitment, the Oak Advantage 3-Year delivers what it promises.
Key facts
The full review
Is Midland National Oak Advantage 3-Year a Good Annuity?
Yes, for the right buyer. If you have $50,000 or more that you will not need for three years and want a guaranteed yield with tax-deferred growth, this is a straightforward, competitively priced option from a carrier with an A+ A.M. Best rating. It is less attractive if you might need access to principal before maturity, are looking for market-linked growth potential, or want income distribution features.
Why Someone Would Buy This Annuity
The practical reason to choose this product is certainty. You get a guaranteed rate locked for three years, no investment choices to manage, no market exposure, and a carrier with top financial strength ratings. For someone sitting on cash in a savings account or a CD that matured, the Oak Advantage 3-Year offers a tax-advantaged alternative at a competitive yield without a long multi-year commitment. The short surrender term also makes it easier to plan around — you know exactly when your money is fully liquid again.
Who This Annuity Is Best For
I think this annuity is best suited for conservative savers in their 50s, 60s, or early 70s who have a defined three-year window — perhaps bridging to Social Security, a home purchase, or a larger retirement drawdown plan. It works in both qualified accounts (IRA, 403(b)) and non-qualified. It is not a good fit for someone who needs regular access to principal, is in a situation requiring flexible liquidity, or wants any exposure to market upside.
What You're Really Buying Here
You are buying a fixed-rate insurance contract. The insurer credits your account at a set rate for three years, and in exchange you agree to leave the principal in place (or pay a surrender charge to exit early). The tax treatment is one of the practical differences from a bank CD: interest accumulates tax-deferred until withdrawal, which can matter for higher-income taxpayers in accumulation. There is no stock market exposure, no indexing, and no rider complexity. The value proposition is simplicity and certainty from a financially strong carrier.
How the Core Feature Works
Midland National credits a single fixed interest rate to your contract value for the entire three-year guarantee period. As of the rate sheet dated April 2, 2026, that rate was 5.25%. This rate is guaranteed and does not fluctuate with market conditions during the contract term. At the end of the three-year period, you can renew at whatever rate Midland National is then offering, move the money, or begin distributions. Interest compounds inside the contract and is taxable only when withdrawn, which is the primary mechanical advantage over a bank CD at an equivalent rate.
Why the Secondary Feature Matters
The nursing home confinement waiver is the most meaningful secondary feature. If you are confined to a nursing home for a qualifying period during the surrender period, Midland National will waive surrender charges and the MVA on withdrawals. For buyers in their late 60s or 70s — which is a natural market for this product — that protection addresses a realistic concern about locking money up for three years. It does not replace long-term care insurance, but it is a meaningful safeguard for a short-term commitment.
Liquidity and Surrender Schedule
The three-year surrender schedule is a flat 3% charge in each year. The schedule drops to zero in contract year four, meaning the term is clean and predictable. An MVA — Market Value Adjustment — also applies during the surrender period. The MVA means that if you surrender early, the actual penalty can be higher or lower than 3% depending on prevailing interest rates at the time of surrender. In a rising-rate environment, the MVA can meaningfully increase the effective exit cost beyond the stated charge.
Free withdrawals are limited to interest credited in the prior year, beginning in year two. In year one, the free withdrawal is limited to interest earned in that first year. This is notably more restrictive than the 10% free-withdrawal provision common on many fixed indexed annuities. Required minimum distributions are treated favorably — RMDs attributable to this contract are not subject to surrender charges or MVA, which is important for IRA holders in their 70s.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 3% |
| 2 | 3% |
| 3 | 3% |
| 4 | 0% |
Fees and Tradeoffs
This product carries no explicit annual contract fee and no rider fee — there are no optional riders to buy. The only cost structure is what is embedded in the spread between the rate Midland National credits to your contract and what it earns on the underlying portfolio. That is standard for a fixed annuity and is not disclosed separately, which is normal for this product type.
The real tradeoffs are structural. First, the free-withdrawal window covers only interest, not principal. If you need access to a lump sum from the principal during the surrender period, you will pay the surrender charge plus any MVA impact. Second, the $50,000 minimum is on the higher end for a short-duration MYGA, which means this is not a product for smaller accounts.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-90 |
| Minimum Premium | $50,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | Interest only beginning in year two (amount up to prior year's interest credited) |
| MGSV | 87.5% of premiums at 1-3% |
| Death Benefit | Greater of accumulation value or minimum surrender value |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Available in CA and SD; not approved in NY |
Carrier snapshot
Legal Entity: Midland National Life Insurance Company
Parent: Sammons Financial Group
A.M. Best Rating: A+
Final take
Oak Advantage 3-Year is a clean, no-frills MYGA from one of the more financially solid carriers in the fixed annuity market. If you have short-term committed dollars and want guaranteed tax-deferred growth without any market exposure, this does what it says. The three-year term is short enough to remain practical for a broad range of retirement savers, and the carrier quality removes most of the counterparty concern.
Where it falls short is liquidity. The interest-only free-withdrawal provision means your principal is effectively locked for three years unless you are willing to pay the surrender charge and absorb any MVA impact. That is a meaningful constraint and the primary reason to look at this only with truly committed money. For buyers who match that profile, it is a straightforward and well-supported short-term guaranteed annuity.