Midland National issues the Accelerate 5 Fixed Indexed Annuity. They are part of Sammons Financial and have been around since 1906, originally founded as the Dakota Mutual Life Insurance Company.
Here’s why Midland National stands out:
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- A+ Rating: Strong financial stability.
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- Excellent Customer Service: Known for reliability and support.
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- Long History: Over 100 years of experience in financial products.
Midland National is a well-respected company, and from personal experience, they provide excellent service.
Key Features of the Midland National Accelerate 5
The Midland National Accelerate 5 is a five-year fixed indexed annuity, meaning it has a surrender period of five years. What makes this product stand out is its variety of index options, which is uncommon for a shorter-term annuity.
Index Options
The Accelerate 5 offers five different indexes to choose from:
| Index Name | Key Feature |
| S&P MARC 5% Index | Stable and consistent performance |
| Fidelity Multi-Factor Yield Index 5% ER | Uses multiple factors to enhance returns |
| NASDAQ 100 VC 12% Index | Provides exposure to top NASDAQ stocks |
| S&P 500 Dynamic Intraday TCA Index | A newer index with unique strategy |
| S&P 500 | The most recognized index for tracking market growth |
It also includes a fixed interest account, giving policyholders the option to reallocate their money between indexes every year.
A good approach is to diversify across multiple indexes instead of putting all funds into one. This can help create more balanced growth over time.
The Benefits of a Short-Term Annuity
The Accelerate 5 offers benefits that are appealing, especially for those looking for shorter commitment periods.
Why a Five-Year Term is Attractive:
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- Flexibility: Shorter commitment compared to 8- or 10-year annuities.
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- Diverse Index Options: Most short-term annuities have fewer choices.
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- Competitive Rates: Strong participation rates and caps.
Midland National also offers 8-year and 10-year versions of FIAs. Generally, the longer the commitment, the better the rates and benefits.
Penalty-Free Withdrawals and Fee Structure
A big advantage of the Midland National Accelerate 5 is that it allows penalty-free withdrawals starting in year two.
Withdrawal Allowance
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- 10% penalty-free withdrawals beginning in year two.
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- Many 5-year annuities only allow 5% withdrawals, making this a great feature.
Fees & Optional Costs
This annuity has no mandatory fees. However, there are optional strategies where you can pay a fee in exchange for a higher cap or participation rate on certain indexes.
⚠️ Marty’s Recommendation: Avoid fee-based indexing strategies. If the index underperforms, you still get charged the fee, which can reduce your overall account value.
Nursing Home Waiver and Death Benefit Options
The Accelerate 5 includes a nursing home confinement waiver, which means if you enter a skilled nursing facility, Midland National will allow you to access your money without surrender charges or penalties.
| Feature | Details |
| Nursing Home Waiver | After 90 days in a skilled nursing facility, full access to funds with no penalty. |
| Death Benefit | Spouse (if the primary beneficiary) can take the account value or continue the annuity. |
This annuity is not designed for long-term care protection, but it does provide financial flexibility if unexpected life events occur.
Keeping Your Money with Midland National After the Term Ends
When the five-year surrender term ends, you have 100% liquidity, meaning you can withdraw your funds or keep the money with Midland National without entering a new surrender period.
What Happens After 5 Years?
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- Funds remain accessible without restrictions.
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- You can leave money in the annuity and continue earning interest.
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- The rate may change based on what Midland National is offering at that time.
This is a great option for those who don’t want to move their money but also don’t want to commit to another long-term annuity.
Rate Lock: Protecting Your Indexing and Crediting Strategies
One of the best features of the Accelerate 5 is its rate lock guarantee.
What is a Rate Lock?
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- Your indexing and crediting strategies will never go lower than what was initially offered.
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- This protects policyholders from changes in market conditions that could lower returns.
Very few annuities offer rate locks on a 5-year term, making this a standout feature.
Internal Roth Conversions: A New Game-Changer
A newer benefit Midland National now offers is internal Roth conversions. This allows you to convert pre-tax money (IRA, 401(k), etc.) into a Roth IRA inside the annuity—without resetting the surrender term.
Why This Matters
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- Tax-Free Growth: Once converted, the money and growth are tax-free.
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- No New Surrender Period: Unlike some products, this does not restart your 5-year commitment.
This feature makes the Accelerate 5 a strong choice for anyone considering long-term tax planning.
Final Thoughts: Is the Accelerate 5 Right for You?
The Midland National Accelerate 5 offers:
✅ A strong A+ rated company with excellent service.
✅ Five diverse index options for growth potential.
✅ Penalty-free withdrawals up to 10% starting in year two.
✅ Rate lock feature to protect crediting strategies.
✅ Roth conversion option without resetting the surrender term.
This product is an excellent choice for short-term retirement planning, providing both growth potential and security.
If you have questions about the Midland National Accelerate 5 or need help with your retirement strategy, use my online calendar to schedule a short phone call today.
All the best,
Marty Becker
Episode 60: Midland National Accelerate 5 Fixed Indexed Annuity Review
Download Episode 60: Midland National Accelerate 5 Fixed Indexed Annuity Review on Apple Podcast