Summit Edge II 7-Year review

Yes, with some important caveats. For someone who wants a clean accumulation FIA with no upfront rider costs, this is a competitive contract. For someone who wants to add income rider benefits, the 8% compound roll-up on the Summit IncomeStrategy GLWB is genuinely strong. The concern is the surrender structure — 9% in year one is on the high end for a 7-year product, and the MVA adds a second layer that can turn a modest early withdrawal into a more costly one.

The main reason is flexibility. Someone who isn't sure yet whether they'll want a guaranteed income stream can enter this contract without paying a rider fee, then add the GLWB if their situation changes. The second reason is the income rider itself: an 8% compound roll-up for up to 10 years is a compelling accumulation mechanism on the benefit base, particularly for buyers who are still 10 or more years from retirement and want a deferred income option with built-in growth. The third reason is Midland National's A+ rating from A.M. Best, which puts it in a small group of carriers with the strongest financial strength grades.

Summit Edge II is best suited for someone in their 50s or early 60s who wants to protect a portion of retirement savings from market losses, can genuinely commit to the 7-year timeline, and either wants accumulation-only or is open to adding a deferred income rider. It works for both qualified and non-qualified accounts, and it accommodates RMDs — a practical consideration for IRA money. It is a harder fit for someone who might need more than 10% of the account value during the surrender period, or someone shopping primarily for the simplest, lowest-cost FIA structure.

You are not buying direct stock market exposure. Summit Edge II credits interest based on index performance using various formulas — annual caps, participation rates, or a downside protection strategy — while protecting principal from direct market loss. Each crediting strategy sets a ceiling or a percentage of the index gain you can receive, not the raw index return. That is the fundamental trade: you give up the full upside of the index in exchange for a floor at zero on down years. The four indices available — S&P 500 in several forms, S&P 500 Dynamic Intraday TCA, S&P 500 Multi-Asset Risk Control 5% ER, and Fidelity Multifactor Yield 5% ER — offer varying levels of built-in volatility management. The risk-controlled indices are designed to reduce volatility, which often means the carrier can offer higher participation rates in exchange for a lower underlying return expectation.

The crediting menu includes four strategies: annual point-to-point, annual point-to-point with cap, two-year point-to-point, and a downside protection strategy. Participation rates on the available brochure materials ranged from 30% to 160%, and caps ranged from 7.25% to 12.75%, depending on the index and rate band. These rates are current as of September 30, 2025 per the spec, and they will change over time.

Rate banding is based on account value, not premiums paid — which means as the contract grows, it's possible to move into a higher crediting band. The two-year point-to-point option extends the measuring period for potentially larger gains on certain indices. The downside protection strategy provides a buffer or floor on losses, depending on the specific structure. The practical takeaway is that buyers can spread allocations across different strategies and indices, which is more flexibility than simpler 7-year FIAs typically offer.

The secondary feature worth understanding is the Summit IncomeStrategy GLWB Rider XV, even if a buyer doesn't plan to elect it immediately. The rider costs 1.25% annually of the benefit base and provides an 8% compound roll-up for up to 10 years on the income benefit base. That means someone who buys at 55 and waits 10 years before turning on income would have a benefit base more than twice the original premium, regardless of how the contract's account value actually grew.

The product also includes an LPA Multiplier Feature for chronic illness situations — available in most states except California. This can increase the income benefit if the annuitant meets long-term care criteria, which adds a layer of protection that goes beyond what a standard income rider provides. These two features together — the GLWB and the LPA multiplier — make this contract more than a straightforward accumulation FIA. For buyers who want that optionality at no initial cost, the structure makes sense.

The free-withdrawal provision allows up to 10% of account value per year starting after year one. That's a standard provision in the FIA market, and it's meaningful for RMD purposes — the contract accommodates RMDs without surrender charges, which matters for IRA holders.

Beyond the free amount, the surrender schedule runs: 9%, 8.5%, 7.5%, 6.5%, 5.5%, 4.5%, 3%, then 0%. The 9% starting charge is higher than the 8% that appears on many comparable 7-year FIAs, including some Corebridge products in the same duration band. On a $100,000 contract, that extra 1% matters if life changes unexpectedly in the first two years.

A market value adjustment — MVA — also applies during the surrender period. An MVA adjusts the surrender value based on interest rate movements at the time of withdrawal. If rates have risen since the contract was issued, the MVA works against you; if they've fallen, it can work in your favor. The practical effect is that the total cost of an early withdrawal is harder to predict than the surrender schedule alone suggests. A nursing home waiver is available, which can remove surrender charges in qualified situations.

The base contract carries no annual fee. That's a real advantage — you're not paying for a rider you might never use. The only fee that applies is the 1.25% annual rider charge, and only if you elect the GLWB rider. That fee accrues on the benefit base, not the account value, which is an important distinction — it can be larger or smaller than a percentage of account value depending on how the benefit base grows relative to the contract value.

The structural tradeoffs are the crediting constraints and the surrender terms. Caps and participation rates limit upside in good markets. Specialty indices with embedded volatility controls may produce lower raw returns than the headline participation rate implies. The 9% starting surrender charge and MVA mean early liquidity is genuinely expensive. These aren't reasons to avoid the product — they're the terms of the deal. Understanding them before buying is the entire point.

Legal Entity: Midland National Life Insurance Company

Parent: Sammons Financial Group

A.M. Best Rating: A+

Midland National is a well-capitalized carrier with one of the stronger financial strength grades in the industry. The A+ from A.M. Best places it in a small group of annuity carriers at that tier. Sammons Financial Group is a large private holding company, which means Midland National doesn't face the same quarterly earnings pressure that publicly traded insurance carriers do — a structural point worth noting for long-term annuity commitments.