Why it earned this rating
Our assessment
The Sundance 3-Year earns a Solid Option rating because its 5.35% rate is genuinely competitive for a 3-year MYGA and it adds a real differentiator — a built-in RMD-penalty-free withdrawal rider — that its own 2-year sibling doesn't include. It loses ground because CL Life's B++ rating sits below the claims-paying strength most shoppers expect from a top-shelf MYGA issuer, and the surrender schedule is steep relative to how short the term is.
The short version
If a B++ carrier is an acceptable trade for a strong short-term rate, the Sundance 3-Year is worth a look — especially for someone who wants the RMD flexibility built in rather than paying for a longer commitment to get it. What keeps this from a higher rating is the carrier's financial strength and the bite of that surrender schedule if plans change early.
Key facts
The full review
Is CL Life Sundance 3-Year a Good Annuity?
Yes, with a caveat. As a pure rate play, 5.35% for three years is a strong headline number, and the RMD-penalty-free rider is a real, uncommon feature at this duration. The caveat is CL Life's B++ rating — meaningfully weaker than the A- or better carriers most competitive MYGA shoppers default to — so this is a good annuity for someone who has made peace with that tradeoff, not a good annuity in a vacuum.
Why Someone Would Buy This Annuity
The main reason to buy the Sundance 3-Year is the rate: 5.35% is a genuinely competitive number for a 3-year MYGA, snapshot as of 3/1/2026. The secondary reason is the RMD-penalty-free withdrawal rider, which lets an owner already taking required minimum distributions pull more than the standard interest-only free amount without triggering a surrender charge or MVA — something the 2-year Sundance doesn't offer.
Who This Annuity Is Best For
I think this is best for someone who wants a short 3-year rate lock, already understands and accepts B++ as a carrier rating, and either is already taking RMDs or expects to be within the life of the contract. It's less appealing for someone who screens carriers at A- or better, or who wants a longer runway before facing the next renewal decision.
What You're Really Buying Here
You're not buying a bank CD, even though the mechanics feel similar. You're buying a three-year insurance contract from a B++-rated carrier that guarantees 5.35% for the term, backs that guarantee with the insurer's claims-paying ability rather than FDIC insurance, and layers in surrender charges and an MVA if you need the money out early. The real value here is the rate and the RMD flexibility — not liquidity or top-tier carrier strength.
How the Core Feature Works
The core of the Sundance 3-Year is simple: a single fixed account crediting 5.35% for three years, with no rate banding — every contract gets the same rate regardless of premium size. There's no index-linked upside and no downside either; the rate is declared and locked for the full term, backed by a 1.00% minimum guaranteed annual return if the contract is surrendered. At the end of the three years, the standard MYGA choice applies: renew into a new guarantee period, surrender, or transfer the funds elsewhere.
Why the Secondary Feature Matters
The RMD-penalty-free rider is the feature that separates this term from its own 2-year sibling. Starting in the second contract year, an owner taking required minimum distributions can withdraw more than the standard interest-only free amount to satisfy the RMD without triggering a surrender charge or MVA. That matters for anyone funding this contract with qualified money who doesn't want the MYGA structure to fight their distribution requirements — a real gap in the 2-year Sundance, which includes only the standard account-value death benefit and no RMD carve-out.
Liquidity and Surrender Schedule
Liquidity here is tight, and the surrender schedule is steep for how short the term is. Free withdrawals are limited to the prior 12 months' accumulated interest, available after the first 30 days — anything beyond that draws both a surrender charge and an MVA. The schedule below drops only one point a year (9%, 8%, 7%), a meaningfully bigger bite in year one than some competing MYGAs charge even on longer terms. The RMD-penalty-free rider softens this for owners already taking distributions, but for anyone else, this contract should be funded with money that can sit untouched for the full three years.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
Fees and Tradeoffs
There's no explicit contract fee or rider charge disclosed — the cost here is entirely structural, not a stated percentage. The real tradeoffs are the B++ carrier rating (weaker claims-paying strength than most MYGA shoppers default to), the MVA that can work against the owner if rates rise before a withdrawal, and roughly half the country — about 25 states, including California, Florida, and New York — where this product isn't even approved.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-90 |
| Minimum Premium | $20,000 |
| Crediting Methods | Fixed rate (declared, single fixed account) |
| Free Withdrawal | Accumulated Interest Only (up to the prior 12 months' interest), available starting after the first 30 days of the contract; amounts withdrawn beyond that incur surrender charges and MVA. This product's own Wink profile states the feature exactly this way: 'Interest only after first 30 days.' |
| MGSV | 1.00% guaranteed annual return |
| Death Benefit | Full Account Value, paid to the named beneficiary(ies). Interest accrues from the date CL Life receives notice of the first owner's death until funds are distributed. A surviving spouse who is sole beneficiary may continue the contract instead of taking the death benefit. Beneficiary may elect lump sum or a series of income payments. |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Per this product's Wink profile (data as of 3/1/2026), not approved in: CA, CO, CT, DC, DE, FL, HI, IA, ID, MA, ME, MN, NC, NH, NJ, NV, NY, OR, RI, SC, SD, VT, WA, WI, WY. |
Carrier snapshot
Legal Entity: CL Life and Annuity Insurance Company
Parent: Crestline Management
A.M. Best Rating: B++
Final take
The Sundance 3-Year is a competitive short-term rate wrapped in a real tradeoff: a B++ carrier and a surrender schedule that's steep for a 3-year term. The RMD-penalty-free rider is a genuine point in its favor over the 2-year Sundance, and 5.35% is a strong number for this duration as of the 3/1/2026 snapshot. Buyers who've made peace with CL Life's rating and don't need the money before the term ends have a reasonable case here; buyers who screen on A- or better carrier strength should look elsewhere.