LunarLock Prime MVA 7-Year review

Yes, for buyers who are committed to the full seven years. The rate structure is competitive, the contract terms are clean, and the nursing home waiver provides a practical exit if circumstances change. It is a less comfortable fit for anyone who might need access to principal above the free-withdrawal amount before the surrender period ends, because the MVA can add real cost on top of the stated surrender charge depending on the interest rate environment at the time of withdrawal.

The main reason to buy this product is a locked rate for seven years with no market risk and no index complexity. A buyer who has already decided they want a MYGA and is comparing rate sheets will notice the higher tier at $100,000. A buyer who is funding an IRA or qualified account will appreciate that RMDs are generally exempt from surrender charges. And a buyer with any concern about nursing-home scenarios will value the waiver that comes standard.

I think LunarLock Prime MVA 7-Year is best for retirees or near-retirees who have a defined seven-year window for this money — perhaps laddering a portion of retirement savings into a rate-lock that sits alongside more liquid assets. It works well in qualified accounts where the RMD exemption is relevant. It is less appropriate for someone with a shorter time horizon, someone who expects to access principal above the annual free amount, or someone who is specifically trying to avoid any MVA exposure in their fixed annuity.

A MYGA is essentially a fixed-rate contract: you deposit a lump sum, the carrier credits a declared rate for the entire surrender period, and your balance grows at that rate with no downside from market performance. The LunarLock Prime adds a Market Value Adjustment to the standard MYGA chassis. The MVA means that if you take a withdrawal subject to surrender charges, the adjustment — tied to changes in a reference interest rate — can either reduce or increase what you actually receive. In a rising rate environment, the MVA typically works against the policyholder. In a falling rate environment, it can work in your favor. The guaranteed minimum surrender value floors the worst-case outcome at 87.5% of premiums, which provides a backstop but not a guarantee that you will get your full principal back if you exit very early in a significantly higher-rate environment.

LunarLock Prime MVA 7-Year credits a single fixed rate for the entire seven-year surrender period. As of the April 2026 rate sheet, that rate was 5.00% for premiums under $100,000 and 5.20% for premiums of $100,000 or more, guaranteed for the full seven years. The Guaranteed Minimum Interest Rate floor is 0.25%, which means even in a worst-case declared-rate reset scenario, the contract does not go below that floor. The simplicity here is the point: one rate, one term, no allocation decisions, no cap or participation rate mechanics to monitor.

The Nursing Home Rider is the most meaningful secondary feature. It allows penalty-free access to the contract in the event of nursing home confinement, which addresses one of the most common real-world scenarios that causes buyers to regret long surrender commitments. Because it is included in the contract rather than added as an optional rider, there is no fee to evaluate — it is simply part of the design. For buyers who are in their sixties or older, this kind of waiver changes the risk calculation materially. It does not eliminate the surrender period, but it does soften the consequences of an extended-care event.

LunarLock Prime MVA 7-Year allows withdrawals of up to 10% of account value per year without surrender charges — using the prior anniversary value as the base starting in Year 2 and the premiums paid in Year 1. That is a standard and practical free-withdrawal provision. Amounts above the 10% threshold are subject to the surrender schedule below, and the MVA applies on top.

The MVA — Market Value Adjustment — is the key distinction from a non-MVA MYGA. It adjusts the surrender value based on changes in a reference interest rate index between the time you purchased and the time you withdraw. If interest rates have risen, the MVA is negative, reducing your proceeds. If rates have fallen, it is positive. The practical effect is that the total cost of early exit can be meaningfully higher than just the stated surrender charge percentage. The contract's guaranteed minimum surrender value of 87.5% of premiums provides a floor. Required minimum distributions are generally exempt from both surrender charges and MVA, which is important for qualified accounts.

There are no base contract fees and no rider fees — the cost of the product is baked into the spread between what the carrier earns on the underlying portfolio and what it credits to policyholders. That is standard for MYGAs. The nursing home rider is included at no separate charge.

The real fee equivalent here is the MVA exposure. In a rising-rate environment, an early exit can cost substantially more than the listed surrender charge alone. That is not a disclosed fee in the traditional sense, but it is a real financial cost that buyers should understand before committing to this version over a non-MVA alternative.

Legal Entity: AuguStar Life Insurance Company

Parent: Constellation Insurance

A.M. Best Rating: A