Why it earned this rating
Our assessment
Rate Lock Fee-Based MVA 5-Year is a well-structured MYGA for the fee-based channel with a competitive tiered rate and a clean fee-free chassis. The MVA element is a real mechanism that introduces variability into surrender costs, which is different from a straightforward penalty schedule and carries more explanation burden. Within its peer group of short-term fixed annuities, the rate structure is solid, but the MVA keeps it from ranking alongside cleaner no-MVA alternatives.
The short version
This is a 5-year guaranteed-rate fixed annuity designed for the fee-based advisory channel. There are no product-level fees, no income rider, and no index-linked component — just a locked crediting rate held for five years. The wrinkle is the MVA: if interest rates have risen since you bought the contract and you need to surrender early, the adjustment could add meaningful cost on top of the stated surrender charge. If rates have fallen, it works in your favor. Most buyers won't trigger it, but it's worth understanding before you sign.
Key facts
The full review
Is Guaranty Income Life Rate Lock Fee-Based MVA 5-Year a Good Annuity?
It depends on the buyer. For someone in the fee-based channel who has true five-year money and wants a straightforward locked rate with no rider fees or participation-rate complexity, this is a reasonable choice. It becomes a worse fit as soon as there is meaningful probability of needing to access principal beyond the 5% free-withdrawal window, because the MVA makes the exit cost less predictable than a fixed-penalty MYGA. I think it's a solid but not standout product within its tier.
Why Someone Would Buy This Annuity
The main reason to buy this annuity is a guaranteed rate held for five years with no fee drag. In the fee-based channel, the absence of a surrender-charge premium load (which commissionable products typically build in) means slightly more of the crediting rate is working for the buyer rather than the distribution chain. The tiered rate structure also means larger deposits — $100,000 and above — earn slightly more than the low-band rate, which is a normal but meaningful distinction at scale.
Who This Annuity Is Best For
This product fits a fairly specific profile: a client working with a fee-only or fee-based advisor who wants the simplicity of a multi-year guaranteed annuity, has no need for lifetime income features, and is comfortable committing a defined pool of money for exactly five years. It is less well-suited to someone who might need more than 5% per year in withdrawals, who wants RMD access in year one (RMDs are available starting year two here), or who has difficulty accepting that the actual surrender cost in an emergency can float with interest rates.
What You're Really Buying Here
At its core, this is a time-locked savings vehicle that lives inside an insurance contract. The insurance wrapper provides tax deferral on accumulated interest, a death benefit that passes outside probate, and access to waiver provisions for terminal illness or nursing home confinement. Beyond that, the mechanics are straightforward: you deposit a premium, it earns a guaranteed rate for five years, and if you stay through the surrender period you receive the full accumulation value. There are no index-crediting decisions to make and no rider charges to manage.
How the Core Feature Works
The crediting structure is straightforward. Guaranty Income Life sets a guaranteed fixed rate for the full five-year term at the time of issue. That rate does not change during the surrender period, which is the "rate lock" the product name references. As of the brochure, the rates tier by deposit size: 5.10% for the $10,000–$99,999 range and 5.20% for $100,000 and above. Interest compounds annually and is credited to the accumulation value. There are no caps, no participation rates, and no spread — just a declared rate that stays in place for the duration.
The fee-based designation matters here. This variant is designed for distribution through RIAs and fee-compensated advisors. The product itself carries no explicit base contract fee, which is consistent with the fee-based channel design — the advisor's compensation comes from client-paid advisory fees, not embedded product costs.
Why the Secondary Feature Matters
The MVA — Market Value Adjustment — is the secondary feature most buyers need to understand. When a MYGA includes an MVA, your surrender value is adjusted up or down based on the relationship between interest rates at the time you surrender versus interest rates when you bought the contract. If rates have risen since your issue date, the MVA adjusts your surrender value downward, effectively increasing the cost of exiting early. If rates have fallen, the adjustment is in your favor.
The MVA only applies during the surrender period and only on amounts subject to surrender charges. Your free-withdrawal amount (5% after year one) and required minimum distributions (starting year two) are not subject to MVA. At the end of the five-year surrender period, the MVA goes away entirely. For a buyer who holds to maturity, the MVA is irrelevant. But it is worth taking seriously for anyone whose circumstances might require a full surrender — particularly in a rising-rate environment.
Liquidity and Surrender Schedule
After year one, you can withdraw up to 5% of the prior anniversary accumulation value each contract year without charges. Starting in year two, required minimum distributions attributable to this contract are also available without charges, subject to a $250 minimum per withdrawal. Systematic withdrawals can be set up monthly, quarterly, semi-annually, or annually.
For anything above the free amount during the surrender period, both the stated surrender charge and the MVA apply. The surrender schedule is:
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
A terminal illness waiver and nursing home confinement waiver are available, which can provide penalty-free access in qualifying hardship situations. Even with those provisions, this contract is designed for money that genuinely won't be needed for five years.
Fees and Tradeoffs
There are no stated base contract fees, no rider fees, and no asset-based charges. The product has a clean fee structure in that sense. The implicit cost is the spread between what Guaranty Income Life earns on its general account and what it credits to policyholders — that is how any fixed annuity works, and it is not unique here.
The primary tradeoff to name honestly is the MVA. Most fixed-penalty MYGAs charge a fixed, predictable percentage for early surrender. This one adds a floating adjustment that depends on rate movements. In flat or falling rate environments, that's a non-issue. In a rising rate environment, it can meaningfully increase the cost of exit. That variability is the tradeoff the buyer accepts in exchange for potentially receiving a slightly higher credited rate than a comparable no-MVA MYGA might offer.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 5 years |
| Issue Ages | 0-100 |
| Minimum Premium | $10,000 |
| Crediting Methods | Fixed crediting rate |
| Free Withdrawal | 5% of prior anniversary accumulation value after year 1; Required Minimum Distributions available starting year 2 (minimum $250) |
| MGSV | 87.5% of premiums at 1-3% |
| Death Benefit | Greater of accumulation value or minimum guaranteed cash value at death |
| 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 mid-sized carrier under the Kuvare US Holdings umbrella. The A- rating from A.M. Best is a reasonable but not exceptional financial strength indicator. For a five-year commitment at this size, it sits in an acceptable range, though shoppers using larger sums or planning longer engagements may want to compare against higher-rated carriers in the MYGA market.
Final take
Rate Lock Fee-Based MVA 5-Year is a clean, fee-free MYGA built for the fee-based advisory market. If you have five-year money, work with a fee-compensated advisor, and want simplicity — a guaranteed rate, no crediting complexity, no rider fees — this product does what it says. The rate tiers are reasonable for the surrender period and channel.
The place to pause is the MVA. If there's any scenario where you might need to exit early, this contract is less predictable than a fixed-penalty alternative. The MVA can work in your favor, but it can also work against you, and that uncertainty has real cost in a rising-rate environment. For true long-term, set-it-and-forget-it money, the MVA is a non-issue. For money that has any chance of being needed before maturity, a no-MVA version of the same product — if available — would give more clarity.