Advanced Choice 3-Year review

For the right buyer, yes. If you want a three-year locked rate from an A-rated carrier and you are not planning to touch the money during the surrender period, this is a straightforward option. If you think you might need early access to more than the 10% free-withdrawal amount, the combination of a 9% charge and an MVA makes this a riskier fit than it might first appear.

The rational case is rate certainty over a short horizon. A buyer near retirement who wants to park a portion of assets at a guaranteed yield — without the inflation risk of a traditional CD wrapper — and can leave the money alone for three years gets a clean, fee-free vehicle with a predictable outcome. The $125,000 threshold for the higher rate also makes this worth considering for buyers consolidating from multiple sources into a single contract.

I think this works best for a buyer in their late 50s or early 60s who has a defined three-year time horizon — say, bridging to Medicare eligibility or a retirement date — and wants a safe, predictable yield without taking on market risk. It fits qualified and non-qualified money equally well. It is less suited for someone with shorter-term cash needs, someone in a state where the product terms vary materially, or anyone uncertain whether they will stay within the free-withdrawal limit.

You are buying a contract that guarantees a fixed interest rate for exactly three years. There are no indices, no participation rates, and no crediting-strategy decisions to make. The rate is set at issue, the clock starts, and at the end of three years the full account value is available without penalty. Before that point, the 10% free-withdrawal provision gives modest annual access, and the waiver provisions address hardship situations. The simplicity is the point — this is not a product you manage, it is a product you hold.

At issue, Security Benefit sets a guaranteed interest rate for the full three-year period. Based on rates as of late April 2026, that rate is 4.60% for contracts below $125,000 and 4.80% for contracts at or above $125,000. Interest compounds annually inside the contract. The Guaranteed Minimum Interest Rate varies between 1% and 3% depending on contract terms, which represents the floor if Security Benefit were to ever reset the rate at renewal — though in a three-year MYGA the rate is locked and does not reset until the term ends.

The tiered structure is worth paying attention to. The 20-basis-point difference between the standard and bonus tier is meaningful on a larger balance. On a $200,000 contract held for three years, the gap in total interest is roughly $1,200. Whether consolidating assets to hit $125,000 makes sense depends on your individual situation and other rate options available at the time.

The most practically important secondary feature is the combination of RMD accommodation and the hardship waivers. Required minimum distributions from a traditional IRA funded by this contract are not subject to surrender charges or MVA — a real benefit for buyers who fund the contract with qualified money and cannot predict exactly how much they will need to distribute each year. The nursing home and terminal illness waivers add a layer of protection against worst-case scenarios during the surrender period, which matters more in a short-duration product than in a longer one where RMD uncertainty compounds over time.

This is a three-year commitment, not a savings account. The surrender schedule opens at 9% in year one — which is high for a 3-year product — and steps down to 8% in year two and 7% in year three. On top of the surrender charge, a Market Value Adjustment (MVA) applies to early surrenders. The MVA moves in your favor when interest rates have fallen since issue and against you when rates have risen, meaning your actual exit cost can exceed the stated surrender percentage in a rising-rate environment.

The 10% free-withdrawal provision helps. After the first contract year, you can take out up to 10% of account value annually without triggering either the surrender charge or MVA, provided at least $5,000 remains in the account. RMDs attributable to the contract are also charge-free. For buyers who stay within those lanes, the liquidity terms are workable. For anyone who might need to access more than 10% before the three-year term ends, the combination of a steep opening charge and an MVA is a meaningful risk.

There is no base contract fee and no rider fee on this product. That is straightforward and appropriate for a MYGA — you are not paying for features you are not getting. The tradeoff is structural, not fee-based: the surrender charges and MVA represent the cost of the guarantee, and the carrier's ability to offer a locked rate depends on holding that commitment on both sides.

One item worth noting: the Minimum Guaranteed Surrender Value is listed as not specified in available materials, which is unusual. Most fixed annuity brochures disclose the MGSV formula (often 87.5% of premiums accumulated at the guaranteed minimum interest rate, less withdrawals). If you are actively shopping this product, ask your agent or Security Benefit directly for the MGSV disclosure before committing.

Legal Entity: Security Benefit Life Insurance Company

Parent: Eldridge Industries

A.M. Best Rating: A-