Why it earned this rating
Our assessment
The Rate Lock Fee-Based MVA 6-Year earns a good-option rating on essentially the same basis as its non-MVA sibling, with one deliberate step down: the MVA adds a rate-environment dependency that the standard fee-based version doesn't carry. The underlying product is sound — clean fee-based structure, A- carrier, credible locked rate, and a six-year duration that fits a reasonable accumulation horizon. But the MVA is a substantive contractual feature that changes the risk profile of an early exit, and that needs to be priced into the rating.
The short version
This is a 6-year guaranteed-rate annuity for fee-based advisory clients that carries a Market Value Adjustment — meaning if you need out early, the cost of leaving isn't just the stated surrender charge. The MVA adjusts your surrender value based on changes in interest rates since you bought the contract. When rates rise after issue, the MVA adds to your exit cost; when rates fall, it can actually reduce it. That two-directional mechanic is worth understanding before committing. If you're genuinely treating this as a six-year lock and you work with a fee-only advisor, the MVA is mostly background noise — you won't trigger it. If there's any real chance you'll need early access beyond the 5% free-withdrawal provision, this variant deserves a closer look relative to the non-MVA version of the same product.
Key facts
The full review
Is Guaranty Income Life Rate Lock Fee-Based MVA 6-Year a Good Annuity?
Yes, with an important caveat around the MVA. For a fee-based advisory client who wants a clean six-year locked rate and is genuinely comfortable not accessing principal beyond the annual free-withdrawal provision, this is a structurally sound MYGA. The caveat is the Market Value Adjustment: it introduces a rate-environment variable into your exit cost that the non-MVA version of this same product doesn't have. If you're comparing the two, you should understand what the MVA would do to your surrender value in a scenario where rates have risen 150–200 basis points since issue. That math is real, and ignoring it because you "plan to hold" doesn't eliminate the risk.
Why Someone Would Buy This Annuity
The primary reason is certainty of return for six years inside a fee-based advisory arrangement. A client who wants to know exactly what rate their money earns — with no cap/participation-rate uncertainty, no rider fees, no commission embedded in the pricing — gets that here. The secondary reason is that the MVA variant occasionally offers a modestly higher credited rate than the non-MVA version in exchange for accepting rate-environment risk on early surrenders. For clients who genuinely have no intent to exit before year six, they're effectively being paid a small premium to absorb a risk they plan never to exercise.
Who This Annuity Is Best For
I think this product is most appropriate for retirees and pre-retirees in their 50s through mid-70s who work with a fee-only or fee-based advisor, have a clear six-year horizon for this tranche of assets, and have already set aside separate liquidity reserves. It is particularly well-suited for clients doing qualified account rollovers — IRA, Roth IRA, SIMPLE IRA — who want to reduce rate risk on a defined portion of a retirement account without adding index complexity. It is a worse fit for clients who are uncertain about their six-year liquidity needs, clients whose circumstances might change in ways that require principal access, and clients who haven't modeled what the MVA would cost them if rates move against them.
What You're Really Buying Here
A MYGA is the insurance industry's version of a CD — a multi-year guaranteed annuity that locks a fixed credited rate for the full surrender period. When you buy this contract, you're committing your premium to a six-year rate lock with Guaranty Income Life's contractual backing. Interest compounds inside the contract, tax-deferred for non-qualified accounts. The guaranteed minimum interest rate is 0.50%, which functions as a contractual floor regardless of what rates do externally.
What makes this version distinct from the standard Rate Lock Fee-Based 6-Year is the Market Value Adjustment endorsement. The MVA is not a fee — it's a surrender-value adjustment mechanism that links your exit value to changes in a reference interest rate index since your contract was issued. Think of it as a floating exit penalty on top of the stated surrender charge. It can work in your favor (rates fall after issue → MVA reduces your effective penalty) or against you (rates rise after issue → MVA increases your effective exit cost). The MVA only applies during the surrender period and only on amounts subject to surrender charges — it does not affect the free-withdrawal provision or RMD amounts.
How the Core Feature Works
The Rate Lock MYGA credits a single fixed rate to your accumulation value each day of the contract year. There is no allocation decision, no index selection, and no annual renewal risk during the surrender period. The rate is declared at issue and guaranteed through year six — 4.35% for premiums of $10,000–$99,999 and 4.45% for premiums of $100,000 and above as of the September 2024 rate sheet (current rates may differ; confirm before placing funds). Both bands earn the same rate at the $100,000+ tier as the non-MVA fee-based version.
The MVA mechanic operates on surrenders and excess withdrawals. The adjustment is typically calculated by comparing a reference index rate at the time of surrender against the rate at contract issue. If the reference rate is higher at surrender, the MVA reduces the surrender value paid; if lower, it increases it. The specific calculation formula is defined in the contract endorsement — ask your advisor to run the MVA formula against a hypothetical rising-rate scenario before issuing the contract, so you understand the worst-case exit cost.
Why the Secondary Feature Matters
The most relevant secondary feature is the Terminal Illness and Nursing Home Confinement Waiver. In a six-year commitment with an MVA, the waiver carries extra weight: it ensures that a genuine health emergency doesn't force you to absorb both a surrender charge and an adverse MVA adjustment when your circumstances change involuntarily. If you are diagnosed with a terminal illness (typically defined as life expectancy of 24 months or less per contract terms) or confined to a nursing home for a qualifying period, the contract waives surrender charges and MVA on withdrawals. No additional premium is charged for this provision — it's a standard contract feature. For clients in their 60s and 70s, that access under real adverse circumstances is a meaningful part of the value proposition.
Liquidity and Surrender Schedule
This annuity is designed for money you do not need to touch. The surrender schedule starts at 9% in year one and steps down to 4% in year six — on top of which the MVA applies to any amount subject to those charges. The combined effect in a rising-rate environment can push the real exit cost well above the stated surrender charge percentage, which is why the MVA warrants its own discussion rather than being buried as a footnote.
The 5% free-withdrawal provision starts in year two, not year one. Starting in year two, you can withdraw up to 5% of the prior anniversary accumulation value each year without triggering surrender charges or MVA. Systematic withdrawals are available in monthly, quarterly, semi-annual, or annual installments with a minimum of $250 per payment. RMDs attributable to the contract are also available without surrender charge or MVA, which is critical for qualified accounts subject to IRS distribution requirements.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 4% |
Fees and Tradeoffs
There are no explicit base contract fees and no rider fees — this is a MYGA with a single credited rate. The real cost structure is the surrender schedule plus the MVA overlay. The MVA is the primary tradeoff that separates this product from the non-MVA fee-based sibling: you're accepting rate-environment sensitivity on early exits in exchange for whichever rate premium the carrier offers on this variant. Whether that tradeoff makes sense depends on your confidence in the six-year hold and your view on the rate environment.
The MGSV floor of 87.5% of premiums growing at 1–3% provides a contractual minimum — but in a meaningful rate-rise scenario, the MVA-adjusted surrender value could sit closer to that floor than the non-MVA version would in the same scenario. The fee-based channel means your advisor earns nothing from the product sale directly, which keeps the recommendation free of that particular conflict. Commission-based advisors cannot offer this version.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 6 years |
| Issue Ages | 0-90 |
| Minimum Premium | $10,000 |
| Crediting Methods | fixed |
| Free Withdrawal | 5% of prior anniversary accumulation value, starting in year 2; also Required Minimum Distributions available. |
| MGSV | 87.5% of premiums at 1-3% |
| Death Benefit | Full Accumulation Value |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not approved in AK, HI, ME, NY. Available for IRA, Roth IRA, and SIMPLE IRA. |
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-domiciled carrier operating under the Kuvare US Holdings umbrella. A- from A.M. Best is a solid investment-grade carrier rating for a MYGA issuer — one notch below the A/A+ tier occupied by the largest carriers but considered financially strong by ratings conventions. Kuvare focuses on fixed insurance and annuity products, which means the operational infrastructure is concentrated on exactly this product type rather than spread across a broad product portfolio.
Final take
If you work with a fee-only or fee-based advisor, have a genuine six-year horizon for this tranche, and are willing to accept the Market Value Adjustment as part of the deal, the Rate Lock Fee-Based MVA 6-Year is a structurally appropriate MYGA. The fee-based channel, A- carrier rating, and rate-lock certainty are real strengths.
The clear mismatches: clients who haven't modeled the MVA in a rising-rate scenario and could be surprised by the exit cost, clients with any material probability of needing principal beyond 5% annually during the surrender period, and clients in states where the product isn't approved. If you're comparing this directly to the non-MVA fee-based version, the decision comes down to whether the rate difference (if any) justifies accepting the MVA risk. In most cases, unless the rate premium is material, the non-MVA version is the more straightforward choice for clients who value simplicity. The MVA version makes more sense when the rate differential is meaningful or when the client's advisor has modeled the specific rate scenarios and is comfortable with the tradeoff.