Why it earned this rating
Our assessment
LunarLock Prime MVA 5-Year is a straightforward MYGA with a competitive fixed rate, a clean fee structure, and wide issue-age eligibility. The MVA is the central tradeoff and is what separates this from a non-MVA sibling — it adds a layer of exit risk that not every buyer fully prices in. Within the 3-5 year accumulation MYGA peer group, the product is solid but not exceptional, landing at the lower end of the Good Option band because of that MVA exposure.
The short version
This is a 5-year guaranteed-rate annuity for people who want a CD-alternative with tax-deferred growth and no annual fees. The locked rate is guaranteed through the full surrender period, which is the core of the value proposition. What buyers need to understand clearly is that the MVA means the penalty for leaving early is not fixed — it floats with interest rates. If rates rise after you buy, surrendering before year five could cost more than the surrender schedule alone implies.
Key facts
The full review
Is AuguStar LunarLock Prime MVA 5-Year a Good Annuity?
Yes, with a caveat. It is a good annuity for someone who genuinely does not need access to the principal for five years and wants a competitive locked rate without paying rider fees. The caveat is the MVA. Buyers who might need flexibility during the surrender period should understand that rising interest rates after issue can amplify the surrender cost meaningfully beyond the posted schedule.
Why Someone Would Buy This Annuity
The main reason to buy this annuity is a guaranteed rate locked for five years with no annual contract fees, no M&E charges, and no administration charges. At a $10,000 minimum, it is also accessible to buyers who cannot hit the higher minimums on some competing MYGAs. The wide issue-age range of 18 to 90 makes it practical for qualified and non-qualified dollars alike, including buyers near or in retirement who need RMD-friendly terms.
Who This Annuity Is Best For
I think LunarLock Prime MVA 5-Year is best for someone in the 55-75 age range with a chunk of non-emergency savings — an IRA rollover, a CD maturity, or a portion of a taxable account — who wants to park that money for five years without market risk. It is available through independent broker-dealers and bank channels, so it fits well for buyers working with a bank or brokerage representative. It is not the right product for someone who might need liquidity, wants growth tied to an index, or is focused on lifetime income.
What You're Really Buying Here
You are buying a five-year guaranteed interest rate from an insurance company — nothing more complex than that. AuguStar credits a fixed rate to your account each year, and that rate is set at issue and does not change during the surrender period. There is no index exposure, no participation rate to track, and no rider to maintain. The insurance wrapper means growth is tax-deferred until withdrawal, which is the main advantage over a bank CD for money in a taxable account. The MVA is the structural difference from a plain MYGA — it ties your exit cost to interest rate movements during the surrender period.
How the Core Feature Works
The credited rate is fixed for the full five-year guarantee period. According to brochure materials as of April 2026, the rate is 4.95% for balances under $100,000 and 5.15% for $100,000 or more — note these are snapshot rates and will change at contract issue. At the end of the initial five-year period, you have three options: surrender penalty-free, roll into a new five-year guarantee period at then-current rates, or accept a one-year interest guarantee while you decide. That flexibility at maturity is a genuine plus, because it avoids forcing buyers into an automatic decision.
Why the Secondary Feature Matters
The secondary feature worth understanding is the death benefit. LunarLock Prime pays the greater of full account value or the minimum guaranteed surrender value (MGSV) — currently 87.5% of premiums at a 1-3% interest rate guarantee. That means a beneficiary receives at least the full account value even if you die during the surrender period, without the MVA applying. For buyers funding this with IRA money or naming beneficiaries, that is a meaningful protection compared to CDs, where early distribution rules can complicate estate settlement.
Liquidity and Surrender Schedule
The free-withdrawal provision is reasonable: 10% of premiums paid in year one, then 10% of the prior anniversary account value in years two through five. That covers most routine needs including RMDs — the spec confirms RMD-friendly terms, meaning required distributions can typically be taken without triggering surrender charges.
Anything beyond the free amount is subject to the surrender schedule and, critically, the MVA. The MVA is a Market Value Adjustment, which means your actual exit cost is not fixed — it depends on how interest rates have moved since your contract was issued. If rates have risen, the MVA applies a downward adjustment that increases your effective penalty. If rates have fallen, the MVA can work in your favor. The practical point is that a 5% posted surrender charge in year five is not the same thing as a 5% actual penalty if rates have moved significantly.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 0% |
Fees and Tradeoffs
There are no ongoing fees — no M&E charge, no product fee, no administration charge, no annual contract fee. That is genuinely clean for a fixed annuity and removes the common drag that erodes returns on more complex products.
The tradeoff is the MVA layered on top of surrender charges. In a rising rate environment, a buyer who needs to exit early pays both the surrender penalty and the market value adjustment. That is the defining structural risk of this product and the primary reason it sits below a top-tier rating in its peer group. For buyers who are confident in their five-year horizon, that risk is largely theoretical. For buyers with any uncertainty about liquidity, it is real.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 5 years |
| Issue Ages | 18-90 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | 10% of premiums paid year 1; 10% of previous account anniversary value years 2+ |
| MGSV | 87.5% @ 1-3% interest rate guarantee |
| 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
Parent: Constellation Insurance
A.M. Best Rating: A
Final take
LunarLock Prime MVA 5-Year is a clean, fee-free MYGA for buyers who want certainty over complexity. If you have a five-year time horizon, do not need the principal, and want a guaranteed rate without any ongoing fees, this fits the bill well. The AuguStar A rating from A.M. Best and the wide issue-age range broaden the use case beyond what some competing MYGAs allow.
The clear caution is the MVA. This is not a product for someone who might need early access. The MVA means the exit cost is not fully knowable at contract issue — it depends on where rates land if you leave early. For buyers who are committed to the five-year window, that risk is minimal. For everyone else, a non-MVA MYGA from a similarly rated carrier deserves a side-by-side comparison before signing.