Secure MYGA Non-MVA 5 with ROP review

Yes, for the right buyer. This is a solid MYGA for someone who wants a predictable, locked rate without the complexity of index crediting or the risk of a market value adjustment changing their surrender cost. The automatic ROP rider is a meaningful addition — it's not common to get that without a separate fee. Where it's less compelling is for buyers who want a shorter commitment or need to compare against peers offering lower first-year surrender charges.

The rational case here is straightforward: you have a lump sum, you want it to grow at a known rate for five years, and you don't want to worry about an MVA creating a surprise on the way out. The ROP rider handles the worst-case scenario — even if rates rise sharply after issue and you need to exit early, you'll always get at least your premium back. That combination of rate certainty and principal backstop is what drives buyers to products like this.

I think this product works best for conservative savers — likely in the 55-to-75 range — who are moving money out of CDs or money market accounts and want a clean 5-year parking spot with predictable tax deferral. It fits equally well in qualified and non-qualified accounts, given the broad issue age range of 18-90. It is less suited to buyers who might need access to principal above the 10% free-withdrawal amount in years one through five, or to buyers whose primary goal is lifetime income rather than accumulation.

You are buying a multi-year guaranteed annuity — essentially an insurance contract that works like a CD but with tax-deferred growth and a few extra safety features. The insurance company locks in a guaranteed interest rate for five years. During that period, your principal is protected and growth accumulates tax-deferred. At the end of the guarantee period, you have a 30-day window to surrender penalty-free or roll into another guarantee period. The ROP rider is what makes the floor explicit: no matter what happens, you can't get back less than your original premium if you exit under the rider's terms. That's not the same as saying you can always exit free of surrender charges — you still pay the schedule — but the ROP caps your downside at zero net loss of principal.

The Secure MYGA Non-MVA 5 credits a fixed interest rate guaranteed for the full 5-year term. The rate note in the available materials lists 4.25% and 4.45% as the applicable rates — the variation likely reflects premium band or qualification status, though the brochure data as of September 2025 does not break out the exact threshold. At the end of the initial guarantee period, there's a 30-day penalty-free surrender window, which is standard MYGA practice. What sets this contract apart from many MYGA alternatives is the explicit absence of an MVA: if you take a surrender during the charge period, the only penalty is the schedule percentage — there is no additional market-value haircut based on where interest rates have moved.

The Return of Premium rider is the secondary feature worth understanding. It's included automatically in every contract at no additional charge. What it guarantees is that if you surrender the contract after the rider conditions are met, your proceeds will be at least equal to your original premium. This is meaningful for buyers who worry about interest rate movements in year two or three creating a scenario where surrender charges plus economic loss add up to more than a full principal return. In practice, for a 5-year MYGA with a locked rate, the ROP provision is rarely the primary exit path — but it functions as a contractual floor on worst-case outcomes. The combination with hardship waivers (nursing home, terminal illness, activities of daily living) gives the contract meaningful flexibility for unforeseen life events.

You can take up to 10% of account value each year immediately — not after a waiting period — as long as you leave a minimum balance of $2,000 in the contract. That's a relatively accessible free-withdrawal provision for a MYGA. Amounts above the free-withdrawal allowance are subject to the surrender schedule: 9% in year one, stepping down 1% per year to 5% in year five, then 0% at the end of the term.

The 9% first-year charge is on the higher end compared to many 5-year MYGA peers — buyers who foresee any chance of needing their money in year one should take note. There is no market value adjustment on this contract, which means the schedule is the entire cost of early exit. Required minimum distributions for qualified money are generally available without surrender charges, though you should confirm with F&G directly for your contract's RMD terms. Nursing home, terminal illness, and activities of daily living waivers also provide relief in qualifying hardship situations.

There are no explicit annual fees, rider fees, or base contract charges in the available materials. For a fixed-rate annuity, the cost of the product is embedded in the rate — the insurer earns a spread between what it pays you and what it earns on its portfolio. That's not a fee you see, but it's real economics. The ROP rider is included at no extra charge.

The tradeoffs are mostly about opportunity cost and liquidity. You're locking money in for five years. If rates rise materially after you issue, you'll be earning below market for the back half of the term. The 30-day window at the end of each guarantee period is when you can reassess. The steep year-one surrender charge (9%) also means this is not the right contract for money that has any realistic chance of needing to move in the first year.

Legal Entity: Fidelity and Guaranty Life Insurance Company

Parent: FGL Holdings

A.M. Best Rating: A