Orbiter Growth 2023 5-Year review

It depends — and specifically it depends on whether you are a California buyer looking for a 5-year FIA with a meaningful index menu. For that buyer, yes, this is a reasonable option. The guaranteed-cap strategy on the S&P 500 is a genuinely useful feature for someone who wants a floor crediting outcome locked in for the whole surrender period rather than a rate that renews annually. For anyone outside California, this product is simply unavailable. And for buyers whose main goal is guaranteed lifetime income, this version does not go there.

The clearest reason to buy Orbiter Growth 5-Year is principal-protected accumulation over a shorter timeline than most FIAs require. The secondary reason is the index menu — specifically the combination of S&P 500 access plus multiple managed indices at high participation rates, all inside one contract. A buyer who wants to diversify crediting exposure across several index strategies without paying a rider fee they do not need would find this structure more flexible than a basic single-index FIA.

I think Orbiter Growth 5-Year is best for a California-based buyer in the 50s or 60s who wants a shorter FIA commitment, values having both a guaranteed-cap option and several participation-rate strategies inside the same contract, and does not need a living benefit rider. It is less attractive for buyers who want simplicity (seven index choices plus a fixed account is a lot to evaluate), who need more than 10% annual access during the surrender period, or who are primarily shopping for protected lifetime income.

You are not buying stock market exposure. You are buying a principal-protected insurance contract where the interest credited is derived from index performance through formulas — caps, participation rates, or a fixed account — rather than direct investment returns. In down years the index-linked strategies credit zero rather than a negative amount, which is the core protection. That zero-floor is a real benefit, but it comes with the tradeoff that caps and participation rates limit how much of an up-market gain you can capture. The guaranteed-cap strategy adds a second layer: a rate locked for the surrender period regardless of what AuguStar's renewal schedule does in future years.

Orbiter Growth 2023 5-Year offers five types of crediting: annual point-to-point with a variable cap, annual point-to-point with a guaranteed cap locked for the surrender period, annual point-to-point with a variable participation rate, annual point-to-point with a guaranteed participation rate locked for the surrender period, and a fixed account. These apply across seven index choices: the S&P 500, the Barclays Global Trailblazer Index, US Balanced Asset 10, US Daily Risk Managed 12, US Multi-Asset Diversified 5, US Multi-Asset Risk Managed 5, and US Strategic Balanced Asset 8.

The two premium rate bands matter here. Contracts funded with $150,000 or more get the High Band rates, which are meaningfully higher: the S&P 500 variable cap moves from 8.25% to 9.25%, and the guaranteed cap moves from 6.75% to 7.75%. On the managed indices, participation rates run from 68% to 178% depending on the index and band. As of the rate snapshot (3/2/2026), US Multi-Asset Diversified 5 shows 160%/178% participation — that is the highest in the menu and reflects the volatility-management characteristics of that index rather than a more aggressive market position. The fixed account runs 3.40%/4.15% by band, with a guaranteed minimum of 0.25%.

The guaranteed-cap and guaranteed-participation-rate options lock the stated rate for the entire 5-year surrender period, which removes renewal-rate uncertainty for buyers who prioritize predictability over chasing better annual resets.

The most meaningful secondary feature is the two-tier rate band structure at the $150,000 threshold. In dollar terms, the difference between a 8.25% and a 9.25% S&P 500 cap is real over several crediting years, and the fixed account spread (3.40% vs 4.15%) is also notable if a buyer is allocating a meaningful portion to the guaranteed account. For buyers who can fund at or above $150,000, the economics improve noticeably. For buyers below that threshold, the Low Band rates are still competitive but less differentiated from other short-term FIAs in the market.

This is a 5-year commitment. The surrender schedule runs 9%, 8%, 7%, 6%, 5%, then drops to 0% after year five. That starting penalty of 9% is on the higher end for a 5-year product and should be factored into the decision. The annual free withdrawal of 10% of contract value reduces the sting for buyers with modest liquidity needs, but anything above that threshold triggers both the surrender charge and a market value adjustment — MVA, meaning the actual penalty can fluctuate above or below the stated schedule depending on interest rate conditions at the time of withdrawal.

Surrender charges and MVA are waived at death and under qualifying nursing home situations through the Nursing Home Waiver. Certain annuitization scenarios also avoid the MVA. RMD treatment is not explicitly confirmed in the available materials — buyers funding this with IRA or qualified money should verify with AuguStar how RMDs are handled before purchasing.

The base contract carries no explicit annual fee, which is typical for accumulation FIAs of this structure. There is no income rider fee because there is no income rider. The cost of the indexed crediting is embedded in how caps and participation rates are set relative to the option budget — that cost is real but invisible on the statement.

The managed index strategies (Barclays Global Trailblazer, the various US-branded indices) carry embedded index costs built into the index construction itself, not as a named line item. High participation rates on those indices (some above 100%) are partly possible because the underlying index is already volatility-managed and therefore generates less of the raw return that would need to be capped. Buyers should understand that a 160% participation rate on a volatility-managed index and a 47% participation rate on the raw S&P 500 are not directly comparable in terms of expected outcome.

Legal Entity: AuguStar Life Insurance Company

Parent: Constellation Insurance

AM Best Rating: A

AuguStar Life Insurance Company is the issuing entity, operating under the Constellation Insurance umbrella. The AM Best A rating indicates financial strength in a range where most buyers should have reasonable confidence in the carrier's claims-paying ability. AuguStar is not a household name in the same way as Corebridge or Nationwide, but it is not a fringe carrier either.