Summit Edge II 5-Year review

Yes, for the right buyer. It holds up well as a 5-year accumulation FIA, particularly because the crediting menu goes deeper than most comparable designs. The issue age range of 0-85 and the $20,000 minimum make it accessible. The caution is that the surrender structure is not especially forgiving — a 9% charge in year one with an MVA on top is meaningful, and buyers who might need access to principal above the 10% free-withdrawal amount before year five should think carefully before committing.

The main reason to buy Summit Edge II 5-Year is principal-protected accumulation with a shorter time horizon than many FIAs demand. The secondary reason is the crediting menu depth. Buyers who have money earmarked for a 5-year window and want more ways to participate in index-linked growth than a cap-only strategy provides will find more choices here than in a basic design. The optional GLWB adds a layer of optionality — you do not have to elect it, but it is there if your plans change.

I think Summit Edge II 5-Year works best for pre-retirees or early retirees in their late 50s to mid-70s who want a 5-year accumulation commitment, care about principal protection, and are comfortable choosing among multiple crediting strategies rather than just picking one standard cap. Qualified money (IRA rollovers) is a natural fit given the RMD-friendly design. It is less attractive for someone who expects to need liquidity above the free-withdrawal amount during the 5-year period, or for someone who wants the simplest possible annuity structure.

You are not buying stock market exposure. You are buying a 5-year insurance contract that credits interest based on index performance subject to caps, participation rates, or the performance of the fixed account — while protecting your principal from direct market losses. The specialty indices in this product use volatility-managed or multi-asset designs, which means they typically deliver smoother but more modest results than a direct S&P 500 cap strategy. That is not inherently bad, but it is something to understand going in. The participation rates on those indices may look attractive on paper; what matters is how the underlying index actually performs over your measurement period.

Summit Edge II 5-Year offers four crediting methods across four indices plus a fixed account. The S&P 500 is available with an annual point-to-point cap strategy or an annual participation rate strategy. The S&P 500 Dynamic Intraday TCA Index and the S&P 500 Multi-Asset Risk Control 5% Excess Return Index are each available with participation rates, and participation rates in the annual and two-year term-end range from 30% to 155% depending on the strategy selected. The Fidelity Multifactor Yield Index 5% ER adds a fourth index option. A fixed account rounds out the menu.

Note: the specific cap and participation rate figures in the spec carry medium confidence based on available materials dated September 30, 2025. These rates reset periodically and the figures you see today may differ from what is current at the time of purchase. Always ask for the current declared rate sheet before making a decision.

The optional Summit IncomeStrategy GLWB rider deserves attention even for buyers who are not primarily shopping for income. The rider offers an 8% compounded annual roll-up on the benefit base for up to 10 years and costs 1.25% of the GLWB value annually. For someone buying this at age 60 with a plan to turn income on at 70, that structure can meaningfully increase the income base before activation. The question is whether the 1.25% annual fee is worth carrying through the accumulation phase — and the honest answer is that it depends on whether you actually turn income on and when. Buyers who are genuinely uncertain about future income needs may find it worth having the option; buyers who are confident they will not need annuity income can skip the rider entirely and avoid the fee.

Summit Edge II 5-Year allows free withdrawals of up to 10% of beginning-of-year accumulation value starting in the second contract year. For the first contract year, no free withdrawals are available. Amounts above the free-withdrawal limit are subject to the surrender charge schedule below and also to an MVA — a Market Value Adjustment that can increase or decrease the effective penalty depending on interest rate movements at the time of withdrawal.

RMD treatment is favorable: IRS required minimum distributions exceeding the available penalty-free amount will have surrender charges and MVA waived by current company practice. The nursing home confinement waiver also provides liquidity relief if the contract owner is confined to a nursing facility. Even with those provisions, this is not a product for money that may be needed in the short term.

There is no base contract fee on Summit Edge II 5-Year. If you do not elect the GLWB rider, your only cost is the structural tradeoff inherent in any FIA — capped or participation-rate-limited upside in exchange for principal protection.

If you elect the Summit IncomeStrategy GLWB, the fee is 1.25% of the GLWB value annually. That is deducted regardless of whether income is turned on, so it runs as an ongoing drag on accumulation from the moment the rider is elected. The tradeoff is straightforward: you get a guaranteed 8% compounded roll-up on the benefit base for up to a decade, but you pay for it whether you use the income guarantee or not.

The MVA is the other real cost to understand. In a rising interest rate environment, surrendering above the free-withdrawal amount can result in a penalty larger than the schedule alone suggests. This is worth discussing explicitly with an advisor before committing.

Legal Entity: Midland National Life Insurance Company

Parent: Sammons Financial Group

A.M. Best Rating: A+

Midland National is a well-established annuity carrier within the Sammons Financial Group. The A+ A.M. Best rating reflects strong financial strength, which matters in the context of a long-duration insurance contract. The Summit Edge II is part of a product family Midland National has maintained for multiple generations, and the company has broad national distribution through the advisor channel.