MetLife Target Maturity Annuity offered by Fidelity

Introduction
Type of Product Fixed Annuity
Product NameMetLife Target Maturity Annuity
Offered byFidelity
Company InfoPrivately held Fidelity Invest... read more
Contact Information
Company OfferingFidelity
Company TypeInsurance Company
Phone Number
Websitewww.fidelity.com
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

4/5 from 2 Reviews


Product Ratings and Reviews

Rating:
5
Average: 5 (1 vote)

You can't just focus on the 4 year version of the Target Maturity annuities.

Yes it is a 1 percent rate guarantee with no jumbo or teaser rate, but they also offer versions with 5, 6, 7 and 10 year guarantee periods and corresponding surrender charge schedules.

The 5, 6 and 7 year versions still offer the 1 percent guarantee.

However, the 10 year base rate version offers 1.55 percent.

Different guarantee periods and surrender charge schedules offer different rates.

1,942 reads
Rating:
3
Average: 3 (1 vote)

A fixed deferred annuity that offers 1 percent guaranteed for 4 years?

Pretty slim pickings.

I realize that we live in a world with very low interest rates, but why would someone lock-up their funds for several years with a guarantee of only 1 percent?

Withdrawals are also pretty tough with this annuity.  The only "penalty free" withdrawal amount allowed is the interest that is earned in the previous contract year.

Huh?  So this means that if someone has $100K in this product and earns the minimum guarantee of 1 percent the previous year, the amount that would be available for a penalty free withdrawal is only $1,000?

This issue is compounded by the fact that this annuity seems to have a longer surrender charge schedule than some of the other fixed deferred annuities offered by Fidelity.

Also, on a comparative basis (again, with other fixed deferred annuities from Fidelity) the guaranteed rate of 1 percent for the 4 year surrender schedule is pretty low.  And, there is no jumbo or teaser rate with this product like there is with some other products.

 

2,126 reads

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