LunarGuard 7-Year review

Yes, for the right buyer. If you have a genuine seven-year horizon, do not need periodic access beyond the free-withdrawal provision, and want a straightforward guaranteed rate without any index exposure or rider complexity, this is a solid product. It is less compelling for someone who might need the money in three or four years or who wants the potential for higher returns from an index-linked strategy.

The core reason to buy LunarGuard 7-Year is certainty. You know exactly what rate you are earning from day one through year seven, with no decisions to revisit, no caps to track, and no crediting periods to manage. For someone parking retirement savings they will not touch until their late sixties or seventies, that predictability has real value. The wide issue-age range — up to 88 — also makes it accessible for older buyers who might be declined elsewhere.

I think LunarGuard 7-Year fits conservative savers in their late fifties or sixties who have a clear seven-year timeline, want to keep a portion of retirement assets out of market risk, and are comfortable with the illiquidity that comes with the commitment. It works well for both qualified and non-qualified dollars, and the RMD accommodation is helpful for IRA holders. It is a poor fit for someone who expects to need above 5% of the balance annually or who is approaching the age where long-duration commitments become less practical.

You are buying a seven-year interest rate guarantee, nothing more. There is no index, no market participation, and no income rider. AuguStar credits a fixed interest rate — set at contract issue and guaranteed through the end of the surrender period — and compounds it on your account value. The guarantee minimum interest rate (GMIR) is 0.25%, so the floor is low, but the contract rate you lock in at issue is what matters in practice and is contractually guaranteed for the full term.

LunarGuard 7-Year credits one fixed interest rate for the entire seven-year period. There are two rate bands: a standard rate for premiums under $100,000 and a higher rate for premiums of $100,000 or more. As of the April 2026 rate sheet, those are 4.75% and 4.95% respectively. Both rates are guaranteed for the full term — they cannot be reset or lowered mid-contract the way some shorter MYGAs allow. Interest compounds annually on the account value. That simplicity is the main selling point: what you see at issue is what you get through maturity.

The Nursing Home Rider is the most meaningful secondary feature. If you are confined to a nursing home for 90 days or more — subject to eligibility requirements — it waives the surrender charges and MVA on withdrawals, allowing access to the full account value without the usual liquidity penalty. That is a genuine safety valve for a seven-year commitment, since the risk of unexpected long-term care needs is real for buyers in their late fifties and beyond. The full account-value death benefit follows the same logic: heirs receive the accumulated value without surrender deductions, which matters in a long-duration contract.

The surrender schedule starts at 9% in year one and steps down to 3% in year seven, then drops to zero. In addition to the declining surrender charge, an MVA — Market Value Adjustment — applies during the surrender period. The MVA means the effective cost of an early withdrawal fluctuates with interest rates: if rates have risen since you purchased, a withdrawal in year two or three could cost more than the stated surrender charge alone suggests. That combination of surrender charge plus MVA is an important distinction from MYGAs that carry only surrender charges.

The free-withdrawal provision — 5% of contract value annually — provides limited liquidity for routine needs. Year one uses 5% of premiums paid as the base; subsequent years use 5% of the prior anniversary account value. RMDs from an IRA are generally not subject to surrender charges, which is helpful for qualified accounts, though confirm specifics with your financial professional. The nursing home and death benefit waivers provide exit relief in defined hardship situations, but outside of those, plan to treat this money as unavailable for seven years.

There are no explicit base contract fees or rider fees listed. Like most MYGAs, the product's economics are embedded in the rate itself — AuguStar earns a spread between what it credits you and what it earns on the underlying portfolio. That is not a hidden fee so much as the standard MYGA model, but it does mean the guaranteed rate is the net figure after the carrier's margin.

The real tradeoff is the liquidity constraint. Seven years is a meaningful commitment for most buyers, and the MVA adds a variable penalty layer that surrender charges alone do not capture. The 3% charge in year seven is modest by then, but paired with a potential adverse MVA, even the final-year exit is not free. If you need access to a significant portion of this money before maturity, the costs can be significant.

Legal Entity: AuguStar Life Insurance Company

Parent: Constellation Insurance

A.M. Best Rating: A