LunarLock Prime MVA 3-Year review

It depends on your situation. For someone who is confident they won't need the money early and wants a short, clean guaranteed-rate commitment, this is a reasonable product. The lower minimum and broad issue-age range (through age 92) make it accessible. But for someone who wants the simplicity of knowing exactly what early exit costs will be, a non-MVA fixed annuity gives more predictability.

The practical appeal here is a guaranteed rate for three years with a low minimum entry. Someone rolling over a maturing CD or short-term bond who wants slightly better tax treatment might find this fits their timeline. The rate banding at $100,000 rewards larger deposits. And the nursing home waiver provides a real liquidity escape hatch for the kind of circumstances that tend to catch people off guard.

I think this is best for a conservative saver in or near retirement who has a clear three-year time horizon, doesn't expect to need the money early, and wants a predictable guaranteed return without any equity market exposure. It works for both qualified and non-qualified money. The wide issue-age range through 92 makes it a reasonable fit for older buyers who want a short commitment with simple mechanics. It is less appealing for someone who values certainty about their exact exit costs under all interest-rate scenarios.

You are buying a guaranteed interest rate for three years, not market participation. The "Prime" name signals that the rate is fixed at contract issue — it doesn't float or reset based on an index. What you receive is the credited rate each year for the contract term, provided you hold to maturity or stay within the free-withdrawal allowance. The MVA is the mechanism AuguStar uses to protect itself from disintermediation risk when rates move — it adjusts the surrender value up or down depending on the direction of interest rates. That means the insurance company isn't absorbing all the interest-rate risk; some of it passes through to you if you exit early.

LunarLock Prime MVA 3-Year credits a fixed interest rate guaranteed for the full three-year surrender period. The spec notes two rate tiers based on deposit size: a standard rate for deposits below $100,000 and a higher rate for $100,000 and above. The guaranteed minimum interest rate (GMIR) is 0.25%, which is a contractual floor. Rates shown in current materials are guaranteed for the three-year term — not a teaser rate that resets annually.

The free-withdrawal provision allows access to 10% of premiums paid in Year 1, and 10% of the prior anniversary value in Years 2 and beyond. RMD withdrawals are handled cleanly — they typically won't trigger surrender charges, which matters for buyers using qualified money in traditional IRAs or 403(b) plans.

The MVA — Market Value Adjustment — is both the secondary feature and the primary tradeoff. When you surrender or take a withdrawal above the free amount during the surrender period, the MVA adjusts the value based on the movement of a reference interest rate index. If rates have risen since you bought the contract, the MVA reduces your surrender value beyond the stated charge. If rates have fallen, it increases your payout.

This isn't unique to AuguStar — MVA products are common in the fixed annuity market — but it's important to understand the asymmetry from a buyer's perspective. In a rising-rate environment, an early exit can be more costly than the printed surrender schedule implies. In a falling-rate environment, you could fare better. Most people buying a 3-year fixed annuity plan to hold to maturity, which makes the MVA largely theoretical — but "largely theoretical" isn't the same as irrelevant.

Surrender charges above apply to amounts withdrawn beyond the free-withdrawal allowance during the first three contract years. The MVA applies on top of these charges to any amount subject to the surrender schedule — it is not a separate deduction on the free portion.

The free withdrawal (10% annually) provides meaningful short-term access for smaller needs without triggering charges or MVA. RMDs attributable to the contract typically avoid surrender charges, which is an important provision for buyers with IRA money. A nursing home rider is also available — if a covered event occurs, it may allow access to contract funds without the standard penalties. State variations apply.

There are no base contract fees on LunarLock Prime MVA 3-Year. The income rider ("Lifetime Annuity Period") is optional, and no explicit rider fee is disclosed in available materials for that feature. The death benefit (greater of full account value or minimum guaranteed surrender value) appears included without additional charge.

The real cost structure is embedded in the rate itself and, for early exitors, the MVA. The MGSV — Minimum Guaranteed Surrender Value — is 87.5% of premiums at a 1–3% crediting rate, which means even in a worst-case surrender scenario there's a contractual floor. That said, the MGSV is the floor, not an expectation.

Legal Entity: AuguStar Life Insurance Company

Parent: Constellation Insurance

A.M. Best Rating: A (medium confidence — sourced from available materials)