Why it earned this rating
Our assessment
LunarLock Prime 3-Year earns a solid-but-not-top-tier rating because it delivers a clean, competitive locked rate for a brief 3-year commitment from a carrier with solid financial strength. The rate structure is meaningful for a 3-year MYGA, and the product adds a nursing home waiver and a reasonable free-withdrawal provision. The main check on a higher rating is the surrender charge schedule: 9% in year one is among the heavier first-year penalties for a 3-year product, and the MVA adds further risk to anyone who might need to exit early.
The short version
This is a 3-year guaranteed-rate annuity for savers who want a CD-like commitment with better tax treatment and a guaranteed yield. AuguStar LunarLock Prime 3-Year is clean in structure — no crediting complexity, no rider fees, no index allocation decisions. You put money in, earn a fixed rate for three years, and walk away at the end of the surrender period. The tradeoff is that the exit path during those three years is expensive: a 9/8/7 surrender schedule and an MVA make early withdrawal a real cost, not just a theoretical one. If you are confident about the time horizon, that tradeoff is easy to accept.
Key facts
The full review
Is AuguStar LunarLock Prime 3-Year a Good Annuity?
It depends on what you need it to do. If you want a short-duration, no-complexity fixed rate from a carrier with an A rating from A.M. Best, and you are confident you will not need more than the free-withdrawal amount during the three years, this is a reasonable choice. If there is any meaningful chance you will need to access principal above that free amount, the 9% first-year charge and the MVA make it less attractive than alternatives with cleaner exit terms.
Why Someone Would Buy This Annuity
The rational reason to buy this product is certainty. You lock in a specific rate for exactly three years, earn it tax-deferred, and have no investment decisions to revisit along the way. The $10,000 minimum makes it accessible for savers who do not want to commit a large premium. The nursing home rider adds a practical safety valve for a buyer who worries about health events during the surrender period without wanting to pay for a full care-enhancement rider.
Who This Annuity Is Best For
I think LunarLock Prime 3-Year works best for conservative savers in or near retirement who want a short-term, guaranteed yield on money they genuinely will not touch for three years. The wide issue-age range (18–92) is notable — this is not a product only for retirees. A younger saver with a defined 3-year goal, or a near-retiree bridging to Social Security, could also fit this profile. It is less suited for anyone who needs regular access above the free-withdrawal amount or is uncertain about their 3-year liquidity needs.
What You're Really Buying Here
You are buying a contractual interest rate guarantee for three years from an insurance company rated A by A.M. Best. There is no index, no participation rate, no allocation decision, and no rider fee. The contract credits interest at the stated fixed rate each year. What makes this different from a bank CD is primarily the tax treatment — interest is tax-deferred until withdrawn — and the insurance-contract structure, which includes a minimum guaranteed surrender value and a death benefit. You are also accepting the insurance company's credit risk, though AuguStar's A rating suggests meaningful financial strength.
How the Core Feature Works
The LunarLock Prime 3-Year credits a single guaranteed fixed interest rate for the entire 3-year surrender period. As of April 2026, that rate is 4.15% for contracts funded below $100,000 and 4.35% for contracts at $100,000 or more. The rate is locked at issue and does not change during the surrender period — there is no annual reset, no crediting window, and no index-driven variability. Interest accrues daily and compounds each year. When the surrender period ends, the contract reaches maturity and the accumulated value is available without penalty.
Why the Secondary Feature Matters
The nursing home waiver is the most meaningful secondary feature here. If the contract owner is confined to a nursing home or similar long-term care facility for a qualifying period, surrender charges are waived on withdrawals. For a 3-year product with a 9% first-year charge and an MVA, this is a real benefit rather than a cosmetic one. Health events are exactly the kind of unplanned exit scenario that makes surrender charges painful, and the waiver directly addresses that risk. It does not eliminate all liquidity constraints, but it covers the scenario most buyers would worry about most.
Liquidity and Surrender Schedule
The free-withdrawal provision allows 10% of premiums paid in Year 1 and 10% of the prior anniversary account value in Years 2 and 3, with a maximum of 12 withdrawals per year and a $100 minimum per transaction (no minimum for electronic transfers). That is a reasonable amount of access relative to the short duration. Withdrawals above the free amount are subject to a surrender charge schedule of 9%, 8%, and 7% in Years 1 through 3, plus a market value adjustment. The MVA — a Market Value Adjustment that can move the effective surrender cost up or down based on prevailing interest rates — means the actual cost of an early exit is not fully predictable at purchase. In a rising-rate environment, the MVA can make the exit more expensive than the stated surrender charge alone. Required minimum distributions are generally not subject to surrender charges, which is a meaningful accommodation for IRA-funded contracts. The nursing home rider also waives surrender charges under qualifying care circumstances.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 0% |
Fees and Tradeoffs
There are no explicit annual fees on this product. No base contract fee, no rider fee, no spread deducted from a crediting strategy. The product's cost structure is embedded in the spread between what AuguStar earns on invested assets and the rate it credits to the contract — which is the standard MYGA model. The tradeoffs are structural. The surrender schedule is 9/8/7, which is on the steeper end for a 3-year fixed annuity. The MVA adds rate-driven uncertainty to any early exit. The MGSV — minimum guaranteed surrender value — is 87.5% of premiums accumulated at 1–3%, which represents the contractual floor the policy owner is guaranteed even in a worst-case early exit scenario after accounting for surrender charges and MVA.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 18-92 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | 10% of premiums paid in Year 1; 10% of previous account anniversary value in Years 2+. Maximum 12 withdrawals per year. |
| MGSV | 87.5% of premiums at 1-3% |
| Death Benefit | Greater of full account value or minimum guaranteed surrender value |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Approved in CA; not approved in NY |
Carrier snapshot
Legal Entity: AuguStar Life Insurance Company
A.M. Best Rating: A
Final take
LunarLock Prime 3-Year is a clean short-term MYGA from a carrier with solid financial strength. It fits best when you want a guaranteed, predictable yield for exactly three years and are confident the money will stay put. The rate structure is competitive, the product is simple, and the nursing home waiver adds a practical layer of protection for a 3-year hold.
The case against it is the exit structure. A 9% first-year surrender charge combined with an MVA means that if plans change, the cost of leaving early is real and somewhat unpredictable. Buyers who have any realistic chance of needing principal access above the 10% free-withdrawal amount during the three years should look for a MYGA with lighter surrender terms or a shorter guarantee period. For those who are genuinely committed to the 3-year hold, this is a solid option within its category.