What is a MYGA?
A Multi-Year Guaranteed Annuity (MYGA) is a type of fixed annuity that provides a guaranteed interest rate for a specified period. MYGAs are a popular choice for individuals looking for stability, predictable growth, and tax-deferred savings, making them an excellent addition to a retirement portfolio. Here’s a closer look at how MYGAs work and why they might be right for you.
How a MYGA Works
- Initial Premium:
- You make an upfront payment to the insurance company, often called your initial principal.
- Guaranteed Interest Rate:
- The insurance company guarantees a fixed interest rate for a specified term, typically ranging from 2 to 10 years.
- Tax-Deferred Growth:
- Your earnings grow tax-deferred based on the current tax code, meaning you don’t pay taxes on the interest until you withdraw it.
- Payout Options:
- At the end of the term, you can choose to withdraw your funds, extend the annuity, or convert it into a lifetime income stream.

Key Features of MYGAs
- Guaranteed Growth:
- MYGAs provide a predictable return, ensuring your savings grow steadily over the term.
- Safety and Stability:
- Unlike market-based investments, MYGAs are not affected by market volatility, making them a low-risk option.
- Flexible Terms:
- MYGAs offer a variety of term lengths, allowing you to align the annuity with your financial goals and time horizon.
- Tax Advantages:
- Earnings grow tax-deferred, enabling more efficient compounding over time.
- Penalty-Free Withdrawals:
- Many MYGAs allow limited penalty-free withdrawals annually, providing liquidity for unexpected expenses.
Benefits of a MYGA
- Predictable Returns:
- The guaranteed interest rate ensures consistent growth, making financial planning easier.
- Low Risk:
- MYGAs protect your principal and provide a stable alternative to market-based investments.
- Tax-Deferred Savings:
- Delaying taxes on interest earnings allows your savings to grow more efficiently.
- Guaranteed Lifetime Income (Optional):
- Many MYGAs offer riders that convert your savings into a guaranteed income stream for life.
- Simplicity:
- With straightforward terms and conditions, MYGAs are easy to understand and manage.
Considerations When Choosing a MYGA
- Term Length:
- Select a term that matches your financial timeline. Shorter terms offer more flexibility, while longer terms may provide higher interest rates.
- Surrender Charges:
- Be aware of surrender charges for early withdrawals beyond the allowed penalty-free amount.
- Inflation Risk:
- While MYGAs offer fixed returns, they may not keep pace with inflation over longer periods.
- Taxation on Withdrawals:
- When you withdraw funds, the interest portion is subject to ordinary income tax, which is generally higher compared to capital gains rates.
- Financial Strength of the Insurer:
- Choose an insurer with a strong financial rating to ensure reliability and peace of mind.

Who Should Consider a MYGA?
MYGAs are ideal for individuals who:
• Seek guaranteed, predictable growth without market risk.
• Want to defer taxes on their interest earnings.
• Need a secure option for medium to long-term financial goals.
• Prefer simple, transparent financial products.
Discover the Oceanview Difference
- Financial Strength You Can Trust: Rated “A” (Excellent) by A.M. Best, showcasing our solid financial foundation, providing you with confidence regarding Oceanview’s commitment to meeting obligations.
- Simple, Transparent Retirement Solutions: Straightforward annuity products designed to help you meet your retirement objectives.
- Competitive Rates and Flexibility: Benefit from competitive rates and a variety of durations and crediting strategies.
- Client-Centric Approach: Features such as free withdrawals, nursing home and terminal illness waivers, and full liquidity for beneficiaries upon the annuitant’s death demonstrate our commitment to your financial security and peace of mind.
Disclaimers
Guarantees are based on the financial strength of the issuing carrier. The multi-year guarantee annuity product with form number IIC19 OLA SPDA, or variations of such, are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurance Company in California; NAIC# 68446). May not be available in all states. Not available in the state of New York or Vermont. Policy form numbers and provisions may vary. Rates are guaranteed depending on the guarantee period selected at policy issue.
Annuities issued by Oceanview Life and Annuity Company, 1819 Wazee Street, 2nd Floor, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.
HARBOURVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.
Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please review the contract for full details.
A.M. Best Rating as of December 11, 2024, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.
This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such.
Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.
The IRS may impose a penalty for withdrawals prior to age 59 ½.
Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
While care was taken in preparing this information and it is considered reliable, contract, application, illustration, and product disclosure language should be relied upon when contrary. The Company reserves the right to correct any typographical errors that may exist.
Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated. Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.