Why it earned this rating
Our assessment
Rate Lock Fee-Based MVA 3-Year carries the same declared rates and clean advisory pricing as its non-MVA sibling, but adds a Market Value Adjustment that makes early exits more unpredictable. For a client who will genuinely hold three years, the MVA is irrelevant and the product earns a rating equivalent to the fee-based version. For a client with any realistic liquidity uncertainty, the MVA introduces downside risk that doesn't exist in competing 3-year MYGAs without it. That asymmetry — full exposure to the downside of rising rates without a compensating rate premium — earns this variant a slight step down from its non-MVA counterpart.
The short version
This is a 3-year guaranteed-rate MYGA for the fee-only advisory channel that adds a Market Value Adjustment to the standard Rate Lock structure. The MVA is the defining feature: it links your early surrender value to where interest rates are sitting relative to when you entered the contract. In a rising-rate environment, exiting before maturity will cost more than the stated surrender penalty alone. In a falling-rate environment, the MVA could work in the client's favor. For advisors placing truly committed 3-year money, the advisory rate advantage and clean cost structure remain intact. For any client with a realistic chance of needing early access, this variant adds a layer of exit uncertainty that the non-MVA fee-based version does not carry.
Key facts
The full review
Is Guaranty Income Life Rate Lock Fee-Based MVA 3-Year a Good Annuity?
It depends on the client's commitment level. For an advisory client who genuinely has 3-year money and will hold to maturity, the product is clean: no base contract fees, a competitive locked rate, and transparent pricing without an embedded commission. The MVA simply won't apply. For a client who might need funds before the three years are up — whether for a planned purchase, a portfolio rebalance, or an unexpected need — this variant is harder to justify than the non-MVA fee-based 3-year, which carries the same rate and simpler exit risk. The MVA doesn't make this a bad product; it makes it a narrower one.
Why Someone Would Buy This Annuity
The core reason is the same as any advisory-channel MYGA: transparent pricing. Fee-only advisors who bill separately rather than collecting commissions through the product spread often prefer products where the yield reflects that — no distribution cost embedded, no conflict of interest to explain. Rate Lock Fee-Based MVA 3-Year delivers that. The MVA specifically may be chosen when an advisor wants access to this particular rate structure and the MVA variant is what's available in their distribution agreement, or when the carrier's MVA terms offer enough potential upside in a falling-rate scenario to make it worth considering over the plain fee-based version. The waiver provisions — terminal illness and nursing home confinement — add real value for advisory clients in or near retirement.
Who This Annuity Is Best For
I think this product is best for a conservative advisory client — typically near or in retirement — who has a clearly defined 3-year savings horizon, no expectation of needing principal access before the term ends, and an advisor who bills separately for investment advice. The wide issue age range (0–100) makes it technically accessible across demographics, though the nursing home confinement waiver caps at issue age 75, so older buyers should verify which waivers apply to them. It is a poor fit for clients with any liquidity uncertainty, clients who are comparing products and can access the non-MVA fee-based version at the same rate, or advisors who haven't explicitly walked the client through how an MVA can amplify early-exit costs.
What You're Really Buying Here
A MYGA is a multi-year CD issued by an insurance company. You deposit a lump sum, the carrier credits a fixed rate for the stated term, and your principal is protected from market movements as long as you hold the contract to maturity. There is no index exposure, no crediting elections, no ongoing contract fees. The insurance wrapper provides tax deferral on interest until withdrawal.
The fee-based variant means the declared rate is not reduced by an embedded sales commission — the advisor's compensation comes separately, through their advisory agreement. That's a genuine pricing advantage in the advisory channel, not marketing language.
The MVA variant means the contract includes an additional adjustment mechanism tied to interest rates. If you hold to maturity, it never comes into play. If you exit early — through a full surrender or a partial withdrawal above the free-withdrawal threshold — the carrier calculates an adjustment based on how rates have moved since issue. Rising rates mean the MVA reduces your proceeds; falling rates could mean a credit back to you. The net effect is that your early-exit cost isn't fully predictable at the time you buy. That's the honest description of what the MVA adds to the product.
How the Core Feature Works
Rate Lock Fee-Based MVA 3-Year credits a single fixed interest rate, guaranteed for three years from contract issue. Rates are tiered by deposit size: 4.35% for deposits of $10,000–$99,999 and 4.45% for deposits of $100,000 and above (the rate sheet consolidates both the $100,000–$249,999 and $250,000+ tiers at the same level). The rate applies to the full accumulation value and compounds annually. There are no crediting elections, no index to monitor, and no resets. The rate is fixed at issue and does not change during the term.
These rates are from the available product materials. Declared rates change for new contracts and should always be confirmed at the time of application. The tiering structure means a $100,000 deposit earns 10 basis points more than a $99,999 deposit — a meaningful incentive to round up if a client is near the threshold.
Why the Secondary Feature Matters
The MVA is the defining secondary feature of this variant, and it deserves a direct explanation rather than fine-print treatment. A Market Value Adjustment is a mechanism the carrier applies to full surrenders and excess partial withdrawals during the surrender period. It adjusts the surrender value based on the relationship between current market interest rates and the rate in effect when the contract was issued.
In practical terms: if interest rates have risen since you bought the contract, the MVA reduces what you receive at surrender — adding to the already stated 9/8/7% penalty. If rates have fallen, the MVA moves in your favor, potentially reducing the effective cost of early exit or even producing a credit. The MVA does not apply to free-withdrawal amounts, RMDs, or surrenders at the end of the surrender period.
The waiver provisions matter separately. If the contract owner is diagnosed with a terminal illness or is confined to a nursing home for a qualifying period, both surrender charges and the MVA may be waived. That's a genuine safety valve for one of the most realistic early-exit scenarios advisory clients face.
Liquidity and Surrender Schedule
Rate Lock Fee-Based MVA 3-Year is a commitment product, and the commitment is stricter than a typical 3-year MYGA. 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 have essentially no penalty-free principal access beyond RMDs attributable to the contract.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
The 9/8/7% schedule is above the peer-group median for a 3-year product — most competing MYGAs in this duration band use schedules in the 5–7% range. The MVA on top of that is the additional variable: in a rising-rate environment, a client who exits at the end of year 2 could face an effective surrender cost well above 8%. Systematic withdrawal options (monthly, quarterly, semi-annual, or annual) are available within the free-withdrawal provision for clients who want scheduled access.
Fees and Tradeoffs
There are no base contract fees and no rider fees on this product. The ongoing cost of holding is zero beyond the advisor's separate advisory fee. The fee-based label means what it says: the product's internal cost structure is transparent and there is no commission drag on the credited rate.
The real costs are structural:
- Surrender charges of 9/8/7% are steeper than peer-group medians for a 3-year MYGA
- Free withdrawals begin in year 2, eliminating first-year penalty-free access except for RMDs
- The MVA introduces exit-cost variability not present in the non-MVA fee-based version — early surrender costs in a rising-rate environment can be meaningfully higher than the stated penalty
- The rate premium versus the commission version is real but narrow — roughly 5–15 basis points depending on deposit tier
- Guaranty Income Life's A- from A.M. Best is investment-grade but not at the top of the carrier quality spectrum
Advisors comparing this against the non-MVA fee-based version of the same product should note that the declared rates are typically identical — the MVA version doesn't compensate the client with a higher yield for taking on more early-exit risk. That asymmetry is the central reason to prefer the non-MVA sibling when both are available.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 3 years |
| Issue Ages | 0-100 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed |
| Free Withdrawal | 5% of prior anniversary accumulation value, starting in year 2 ($250 minimum). Also includes Required Minimum Distributions and systematic withdrawals available in monthly, quarterly, semi-annual or annual payments. |
| 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 operating under Kuvare US Holdings, a mid-size insurance holding company. The A- from A.M. Best places it in the lower tier of the investment-grade range — financially sound, but not at the top of the spectrum. Advisors whose clients prioritize carrier size or brand recognition may want to benchmark against larger MYGA issuers at the same duration. For advisors comfortable with A-rated mid-market carriers, this is a functional issuer with reasonable financial backing.
Final take
Rate Lock Fee-Based MVA 3-Year is a well-structured advisory-channel MYGA that earns its rating when placed with the right client. For advisors whose clients have genuine 3-year money and no realistic liquidity needs, the product delivers: clean pricing, competitive locked rate, zero ongoing fees, and a carrier that backs the guarantee. The MVA is irrelevant in that scenario.
Where it loses ground is in the comparison to its own sibling. If the non-MVA fee-based version is available at the same declared rate, there is no yield advantage to accepting MVA risk. The asymmetry — full exposure to the downside of rising rates without a compensating rate premium — is a real structural weakness advisors should address directly with clients before placing this variant. For clients who are committed to the full term and understand exactly what the MVA means, this is a solid tool. For clients with any ambiguity in their 3-year horizon, the non-MVA version is the cleaner choice.