The short version
What you give up is access and upside: the money is committed for the surrender period, and there is no return above the declared rate.
How this contract works
A multi-year guaranteed annuity works the way a bank CD works, with an insurance company in place of the bank. You hand over a single premium, the carrier credits a declared rate, and the interest compounds inside the contract without being taxed until it comes out. The guarantee is a contractual obligation of Aspida, backed by the company's own reserves — not by the FDIC, and not by any bank.
The rate is locked for the guarantee period; at the end of it, contracts typically offer a window to withdraw, renew at then-current rates, or annuitize. Confirm the terms in the carrier's disclosure.
The minimum premium is $25,000, and the carrier will issue the contract up to age 90.
Getting your money out
The contract allows 10% out each year without a surrender charge (per the carrier's brochure). Beyond that allowance, a withdrawal during the surrender period is reduced by the charge for that contract year.
This contract also carries a market value adjustment. On top of the surrender charge, an early withdrawal is adjusted up or down depending on how interest rates have moved since the contract was issued — if rates have risen, the adjustment works against you. It applies only to withdrawals above the free amount during the surrender period.
Fees and tradeoffs
Our rate data carries no fee figure and no rider for this contract. That is a gap in the data, not proof that neither exists — waiver-type riders such as a nursing-home or terminal-illness benefit sit entirely outside what it reports, so check the carrier's brochure or ask the carrier directly before treating the contract as costless. What is certain is that the carrier is compensated either way: its margin is built into the declared rate, which is why comparing the rate against other contracts of the same length matters more than hunting for a fee schedule.
The real tradeoffs on a contract like this are tax and timing, not fees. Gains come out as ordinary income rather than capital gains, and a withdrawal before age 59½ generally carries a 10% IRS penalty on top of the tax. Neither is a reason to avoid the product; both are reasons it suits money you have already decided not to touch.
Who this fits
This contract fits money with a known holding period — someone who can leave the premium alone for the full surrender period and would rather have a fixed number than a range of outcomes.
It does not fit an emergency fund, money that may be needed for a medical or housing event, or a buyer who wants the account to keep pace with inflation — a declared rate does not adjust when inflation moves. Anyone under 59½ should weigh the tax penalty before treating this as a savings account.
The carrier
Every guarantee in this contract is only as good as Aspida, which currently holds an A.M. Best financial strength rating of A-. An annuity is not FDIC insured; the backstop is the carrier's own balance sheet, with state guaranty association coverage behind it at limits that vary by state.
The contract is filed in 49 states, not including New York — New York files its own annuity products, so a New York resident is shopping a different and much smaller shelf.
- Death Benefit
- Full contract value paid to named beneficiaries, without withdrawal charges or MVA, typically avoiding probate. Special rules apply if spouse is co-owner.
- Minimum Guaranteed Surrender Value
- 3.00% Guaranteed Annual Return (Minimum Guaranteed Surrender Value)
- RMD Treatment
- RMD-friendly: surrender charges waived on IRS required minimum distributions.
- Withdrawal Provisions
- When 10% Free Withdrawal option is added to a tax-qualified IRA contract, RMDs (after first 30 days, including amounts above the 10% free amount) are not subject to withdrawal charges or MVA.
Frequently asked questions
What happens at the end of the guarantee period?
Contracts generally give you a short window to surrender without a charge, renew into a new guarantee period at the rate then being offered, or convert the balance into income payments. The renewal rate is not known in advance and is usually not the rate you started with — check the carrier's disclosure for the exact window.
Are there annual fees?
The carrier is compensated through the spread between what it earns on its portfolio and the rate it credits you, and that is already reflected in the declared rate. Beyond that, our rate data doesn't carry a fee figure or a rider for this contract, so we can't tell you whether either exists — that's a gap in the data, not evidence there is none, and waiver benefits in particular sit outside what it reports. Ask the carrier in writing before treating the contract as costless.
Is this FDIC insured?
No. Annuities are issued by insurance companies and are not guaranteed by any bank or by the FDIC. The guarantee is Aspida's contractual obligation, backed by its reserves, with state guaranty association coverage behind it at limits that vary by state.
What happens if I die before the term ends?
Full contract value paid to named beneficiaries, without withdrawal charges or MVA, typically avoiding probate. Special rules apply if spouse is co-owner. This is stated in the carrier's brochure as of 2026-08-12; confirm it against the contract you are actually issued.
Can I take my required minimum distribution?
RMD-friendly: surrender charges waived on IRS required minimum distributions. Per the carrier's brochure as of 2026-08-12.
What is the market value adjustment?
An adjustment applied to withdrawals above the free amount during the surrender period, based on how interest rates have moved since your contract was issued. If rates have risen, it reduces what you receive; if they have fallen, it can increase it. It does not apply at the end of the guarantee period.
