Oak Advantage 7-Year review

Yes, for a specific buyer. If you want a guaranteed fixed rate locked for seven years with a trusted carrier and you are confident you will not need access to the principal during that window, this is a clean product from a strong company. If you want meaningful penalty-free access to principal — say, 10% per year the way many competing MYGAs allow — this is not the right choice, because Oak Advantage 7-Year does not work that way.

The primary reason is certainty. A buyer who wants to know exactly what their money will earn for the next seven years, wants no exposure to market risk, and wants a carrier with an A+ AM Best rating is a natural fit here. The secondary reason is the surrender structure. The flat 3% charge is low by MYGA standards — many products start at 8-10% in year one and taper down — and the same low rate applies whether someone exits in year two or year six. That consistency makes planning easier.

I think Oak Advantage 7-Year is best for a retiree or pre-retiree in their late 50s to early 70s who is moving money out of a maturing CD, bond, or older annuity and wants to lock in a fixed return for the next seven years without thinking about market exposure. It fits well in a qualified or non-qualified account where RMDs are a consideration, since RMDs are exempt from surrender charges and MVA. It is less suited for someone who wants access to a portion of their principal each year, someone with a shorter time horizon, or someone who needs income payments.

You are buying a contract where Midland National guarantees to pay 5.30% on your premium for seven years. Your principal does not go up or down with any market. At the end of the surrender period, you receive your original premium plus the accumulated interest, and you can either renew, roll to another product, or take the money. The product is functionally similar to a 7-year CD, with two key differences: the interest grows tax-deferred, and there is an insurance company — not a bank — standing behind the guarantee. The MGSV — Minimum Guaranteed Surrender Value — ensures that if you surrender early, you receive at least 87.5% of your premiums growing at a stated rate, which acts as a floor beneath the worst-case exit scenario.

Oak Advantage 7-Year credits interest at a single fixed rate — 5.30% as of the available materials — applied to your account value each year for the full seven-year term. There is no market index involved, no cap, no participation rate, and no strategy selection. The rate is set at issue and does not change. At maturity, the surrender charge drops to zero. Between now and then, the 3% flat surrender charge and MVA apply to any withdrawal beyond the free-withdrawal provision. The simplicity of the design is itself a feature: there is nothing to monitor, nothing to reallocate, and no crediting strategy decisions to make after the contract is issued.

The most notable secondary feature is the nursing home confinement waiver. After year one, if the owner is confined to a nursing home for at least 90 consecutive days, 100% of the contract value can be withdrawn without surrender charges or MVA — except in South Dakota. For a 7-year commitment made by someone in their 60s or early 70s, this waiver materially reduces the risk of being locked into a contract if health circumstances change. It does not solve every liquidity problem, but it addresses one of the most common reasons people regret long surrender periods. The advisory fee allowance — up to 1.0% annually can be withdrawn penalty-free to pay a financial advisor — is also worth noting for buyers working with a fee-only advisor.

The surrender structure here is worth understanding carefully before committing. The free-withdrawal provision allows you to take out only the interest earned in each contract year after year one — not a percentage of the account balance. That is more restrictive than the 10% free-withdrawal provision common on many competing MYGAs. If your contract earns $2,650 in interest in year two, that is the maximum you can withdraw penalty-free that year.

Beyond that amount, a 3% surrender charge applies through year seven. An MVA — Market Value Adjustment — can also apply to amounts subject to surrender charges, which means the effective cost of a mid-contract exit may be higher or lower than 3% depending on interest rate movements. In a rising-rate environment, the MVA can increase your exit cost. RMDs are exempt from surrender charges and MVA, which makes this product usable inside an IRA even with the relatively tight free-withdrawal terms.

There are no separate rider fees on this product because no riders are available. The base contract has no explicit annual fee. The cost of the product is embedded in the spread between what Midland National earns on its general account assets and what it credits to policyholders. That is standard for MYGAs and not a unique concern here.

The main tradeoffs are structural. You are giving up seven years of liquidity for a guaranteed rate. The interest-only free-withdrawal provision means you cannot systematically withdraw 10% per year the way many competing products allow. The MVA adds volatility to the actual cost of exiting early. And the $50,000 minimum premium excludes smaller accounts. None of these are unusual for a 7-year MYGA, but they need to match your actual situation before committing.

Legal Entity: Midland National Life Insurance Company

Parent: Sammons Financial Group

A.M. Best Rating: A+

Midland National is part of Sammons Financial Group, a privately held holding company. A+ from AM Best is the second-highest rating tier available and reflects strong financial strength. Midland National has been in the annuity market for decades and carries a mainstream, established presence in the MYGA and FIA space.