Why it earned this rating
Our assessment
Rate Lock 3-Year is a clean, no-frills MYGA from a solid regional carrier. The rate structure is competitive and the product avoids the complexity of longer commitments, but the 9/8/7% surrender schedule is steeper than what many 3-year peers carry, and the delayed free-withdrawal access (year 2 rather than year 1) means the first twelve months offer essentially no liquidity. Those structural choices hold it just below the Good Option threshold.
The short version
This is a 3-year guaranteed-rate annuity for people who want a short, predictable savings vehicle with slightly better tax treatment than a CD. The rate locks in for the full three years — no index exposure, no crediting complexity, no rider fees. What you give up in exchange is flexibility: surrender penalties are steeper than average for this duration, the MVA adds rate-movement risk to early exits, and free withdrawals don't kick in until the second year. For someone who genuinely won't need the money for three years and wants a guaranteed yield, it does what it says. For someone with any near-term liquidity uncertainty, the surrender structure is a real constraint.
Key facts
The full review
Is Guaranty Income Life Rate Lock 3-Year a Good Annuity?
It depends on your timeline certainty. If you're parking money for three years and are confident you won't need access to principal, this is a reasonable choice — the rate is locked, there are no fees, and the product is straightforward. If you have any chance of needing the money in the first two years, or if you're comparing it against 3-year MYGAs with lower surrender charges, you can likely do better elsewhere. The 9/8/7% surrender schedule is the product's main weakness relative to its peer group.
Why Someone Would Buy This Annuity
The straightforward reason is a locked rate with principal protection and a short commitment window. Someone rolling out of a CD who wants a 3-year guaranteed yield, slightly better tax deferral on interest, and no market exposure would find this product familiar and easy to understand. The nursing home and terminal illness waivers are a meaningful add for buyers who want some downside protection on catastrophic events. The wide issue age range (0–100) also means this isn't limited to a narrow demographic.
Who This Annuity Is Best For
I think Rate Lock 3-Year fits best for a conservative saver — likely in or near retirement — who wants a predictable 3-year return with no surprises and no need for liquidity during the term. This is not a product for someone who might need partial access to principal in year one, wants to retain flexibility to move funds mid-contract, or is primarily focused on maximizing long-term accumulation. It's also less attractive for buyers comparing it against competitors offering lower surrender charges for the same 3-year term.
What You're Really Buying Here
A MYGA is essentially a multi-year CD issued by an insurance company. You deposit a lump sum, the carrier credits a fixed interest rate for the stated term, and your principal is protected from market downturns. There is no index exposure, no participation rate math, and no crediting complexity. The insurance wrapper provides tax deferral on interest until withdrawal — a real benefit in a taxable account but neutral in an IRA. The carrier backs the guarantee with its own balance sheet, which is why the A.M. Best rating of the issuer matters. Guaranty Income Life carries an A- from A.M. Best, which is within the investment-grade range but not at the top of the carrier quality spectrum.
How the Core Feature Works
Rate Lock 3-Year credits a single fixed interest rate, guaranteed for three years from contract issue. As of the September 2025 rate sheet, the guaranteed rate is 4.20% for deposits of $10,000–$99,999, and 4.30% for deposits of $100,000 or more (both the $100,000–$249,999 and $250,000+ tiers carried the same 4.30% rate in the available materials). The rate applies to the full accumulation value each year and compounds over the contract term. There are no crediting elections to make, no indexes to choose, and no annual resets to track. Once the rate is set at issue, it doesn't change for the three-year period.
Rate bands are worth noting. Buyers who can reach the $100,000 threshold pick up an additional 10 basis points, which is modest but meaningful when compounded over three years on a larger deposit.
Why the Secondary Feature Matters
The terminal illness and nursing home confinement waiver is the most meaningful secondary feature here. If the owner is diagnosed with a terminal illness or confined to a nursing home for a qualifying period, a partial or full surrender penalty may be waived — providing a real liquidity escape valve for one of the more likely scenarios where someone might need emergency access to a locked account. The nursing home version has a maximum issue age of 75, so buyers entering the contract older than that would only have the terminal illness provision available. That's a useful feature to understand before relying on it.
Liquidity and Surrender Schedule
Rate Lock 3-Year is a commitment product. The surrender schedule runs 9%, 8%, 7% in years one through three — on the steep end for a 3-year MYGA. Many peer products in this duration band use schedules in the 5–7% range, which makes this product less flexible relative to what the category typically offers.
Free withdrawals of 5% of the prior anniversary accumulation value (minimum $250) are available starting in contract year 2, not year 1. That means the first twelve months after issue have essentially no penalty-free access to principal beyond RMDs attributable to the contract. After year 2, the 5% free-withdrawal provision can provide some access without triggering charges, but it won't help someone who needs funds in the first year.
A market value adjustment (MVA) also applies to full surrenders and partial surrenders that exceed the free withdrawal amount during the surrender period. MVAs move in the direction of interest rates — if rates have risen since issue, the MVA will reduce the surrender value further. For a 3-year product in a rising-rate environment, that's a meaningful additional risk beyond the base surrender charge. The MVA does not apply to free-withdrawal amounts or to RMDs.
Systematic withdrawal options (monthly, quarterly, semi-annual, or annual) are available for buyers who want regular payment access within the free-withdrawal provision.
Fees and Tradeoffs
There are no base contract fees and no rider fees on this product. That's a genuine advantage over more complex annuities and worth noting plainly. The cost of owning this product is entirely structural: the rate you receive, the penalties for early exit, and the opportunity cost of the locked commitment.
The main tradeoffs are:
- Surrender charges of 9/8/7% are high for a 3-year product — above typical peer-group medians
- Free withdrawals begin in year 2, not year 1, limiting first-year liquidity
- The MVA adds uncertainty to early exit costs beyond the stated surrender schedule
- Rates (as of September 2025) are competitive but not the highest available in the 3-year MYGA market
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-100 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed Rate |
| Free Withdrawal | 5% of prior anniversary accumulation value or RMD, starting in year 2 ($250 minimum) |
| MGSV | 87.5% of premiums at 1-3% |
| Death Benefit | Full Accumulation Value Before Annuitization |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not approved in: AK, HI, ME, NY |
Carrier snapshot
Legal Entity: Guaranty Income Life Insurance Company
Parent: Kuvare US Holdings, Inc.
A.M. Best Rating: A-
Guaranty Income Life is a Louisiana-based carrier that operates under Kuvare US Holdings, a mid-size insurance holding company. The A- from A.M. Best places it in the lower end of the investment-grade range. It is not a household name in the annuity market, but it is a licensed and rated carrier with a functional distribution network. Buyers who place a premium on carrier size or brand recognition may want to compare against larger MYGA issuers at the same duration and rate tier.
Final take
Rate Lock 3-Year does what a 3-year MYGA is supposed to do: it locks in a guaranteed rate for a short, defined term with no market exposure and no ongoing fees. For someone who genuinely has a 3-year time horizon, wants simplicity, and won't need principal access during the contract period, this product is a straightforward and functional choice.
The hesitation is in the surrender structure. Charges of 9/8/7% are meaningfully higher than what many 3-year MYGA peers charge, and the year-2 start for free withdrawals removes most first-year flexibility. If you're comparing 3-year MYGAs purely on rate and penalty terms, there are likely options with a more favorable balance. Where Rate Lock 3-Year competes better is when the nursing home and terminal illness waivers matter to the buyer, or when the specific rate on a given day happens to lead the peer group.