Midland National Puts ESG in Indexed Annuity

The contract is available with a five-year term or a seven-year term and is available for issue ages 0 to 85, with a minimum premium of $50,000, for a five-year term or a seven-year term, according to a Midland National brochure.

Holders can choose from an index menu that includes the Fidelity Multifactor Yield Index 5% ER (FIDMFYDN) or the S&P 500 Low Volatility Daily Risk Control 5% Index ER (SPLV5UE) as well as the BlackRock ESG index.

Holders can accumulate value by layering interest credits using either annual performance credits or term participation credit.

For the contract with the five-year term, for example, Midland National will pay an annual performance credit each year the underlying index goes up.

The annual performance credit rate “is set at the beginning of each term and will not change during your term,” the company says.

But, if the index change is zero or negative for a year, no annual performance credit will be paid, Midland National says.

For a holder of a contract with a five-year term who chooses the term participation credit crediting rate strategy, Midland National will  apply a credit after the fifth year “if the underlying index change is positive over the course of the five-year term,” according to Midland National.

The product provides an accumulation value withdrawal feature for holders who become confined to a qualified nursing home for 90 or more days.

The product also provides a death benefit feature. The beneficiary will receive the contract accumulation value or the minimum surrender value plus potential interest credits, according to Midland National.