
Top Tips for Agents: Selling MYGAs Successfully
When selling Multi-Year Guaranteed Annuities (MYGAs), understanding their tax advantages is key. Clients looking for stable, long-term growth often prioritize tax efficiency, making MYGAs a powerful financial tool. By leveraging their guaranteed rate and tax-deferred benefits, you can help clients build wealth while positioning yourself as a trusted agent.
At Premier Insurance Partners (PIP), we equip insurance agents with the insights and tools needed to strengthen annuity sales. Whether you’re new to selling annuities or a seasoned pro, these top strategies for selling MYGAs will help you guide clients toward financial security.
MYGAs and the Power of Tax Deferral
Tax deferral is a game-changer for long-term savings. With MYGAs, clients don’t pay taxes on interest earnings until they withdraw funds. This allows their money to compound faster than certificates of deposit and other taxable alternatives. For clients seeking predictable, low-risk growth, MYGAs offer a compelling solution.
By explaining how tax deferral works, you can help clients see why MYGAs offer predictable, fixed interest rates and tax-deferred growth, making them a strong option for clients seeking stability. However, variable annuities and fixed indexed annuities (FIAs) may provide market-linked growth potential and income rider options that could better suit clients with different financial goals. Many clients overlook tax implications when planning for retirement income, so your role in educating them is crucial.
Why Clients Choose MYGAs
Clients invest in MYGAs for a few core reasons:
- Tax Efficiency – Earnings grow tax-deferred, meaning more money stays invested over time.
- Retirement Planning – MYGAs complement other retirement savings tools and annuity types, helping clients build a reliable income stream.
- Higher Interest Rates — MYGAs often offer higher interest rates than traditional saving accounts, making them attractive to retirees.
Clients in higher tax brackets especially benefit from deferring taxes on growth, making MYGAs an attractive addition to their portfolio.
Tax Deferral vs. Taxable Investments
One of the top strategies for selling MYGAS is to compare them to taxable investments. MYGAs offer tax deferral, meaning clients won’t pay taxes on their earnings until they withdraw funds. This allows their money to compound more efficiently over time. In contrast, taxable investments, such as CDs or mutual funds, require clients to pay taxes on their interest earnings each year, slowing down overall growth.
MYGAs also provide a guaranteed income stream, ensuring clients have predictable returns without market risk. Meanwhile, taxable investments may have fluctuating returns and expose clients to potential market downturns. By emphasizing these benefits, you can help clients understand why MYGAs are a valuable addition to their financial plan.
Overcoming Objections
Some clients hesitate to invest in MYGAs due to liquidity concerns and surrender charges. Here’s how to address those objections:
- Liquidity Concerns: Many MYGAs offer payout options, including penalty-free withdrawals after a certain period or allowing clients to withdraw a portion each year.
- Surrender Charges: These fees decrease over time, making them less significant for long-term investors.
- Overall Benefit: The tax advantages often outweigh short-term liquidity needs, especially for clients focused on lifetime income.
By reframing the conversation around long-term growth, you can help clients see the bigger picture.
Maximizing Tax-Deferred Growth
To fully benefit from MYGAs, clients should integrate them into a broader financial strategy. Here’s how:
- Diversify Retirement Savings: Use MYGAs alongside IRAs and 401(k)s for tax-efficient growth.
- Plan for Withdrawals: Educate clients on structuring withdrawals to minimize tax burdens in retirement.
- Reinvest Earnings: When MYGA terms end, rolling funds into a new annuity contract can extend tax deferral benefits.
- Use Laddering Strategies: Staggering MYGA terms through laddering helps clients maintain liquidity while optimizing their returns.
Your role as an agent is to highlight these strategies and show beneficiaries how MYGAs fit into their long-term plans.
Best Practices for Selling MYGAs
Success in selling MYGAs comes down to education and the right tools. At PIP, we provide agents with everything needed to close more sales effectively. Here are some top strategies for selling MYGAs:
- Use Clear, Simple Explanations – Clients may not understand financial jargon, so keep your messaging straightforward.
- Show the Tax Benefits – Provide real-world examples of how tax deferral helps grow savings.
- Highlight Stability – Emphasize how MYGAs protect against market downturns.
- Leverage PIP’s Resources – Use our calculators, training, and marketing materials to educate clients.
- Position MYGAs Alongside Other Annuity Products — Compare traditional fixed annuities, FIAs, and income annuities to find the best fit for each client.
- Work with Reputable Providers — Partners with reputable insurance companies to offer secure annuity contracts.
By focusing on education and transparency, you can build trust and boost your MYGA sales.
The top strategies for selling MYGAs are about more than just closing a deal—they’re about helping clients secure their financial future. By leveraging tax deferral, addressing objections, and demonstrating MYGAs’ advantages over taxable investments, you can confidently guide clients toward long-term growth.
At Premier Insurance Partners, we’re here to support your success. Ready to take your MYGA sales to the next level? Contact us today to access agent training, marketing By explaining how resources, and exclusive MYGA products that will help you grow your business.
Here at Premier Insurance Partners, we make selling insurance easy no matter where you are in your insurance career. We prioritize providing in-depth training to our sales agents to help their clients and grow your business. Find the best rate for your clients with our Medicare software for our top producers. Our annuity tool always offers the most recent changes. If you have any questions, please contact Premier Insurance Partners at 855-827-1661 or info@pip1.com.