MYGA Plus 7 Year review

Yes, for the right buyer. It's a good annuity for someone who wants a guaranteed rate for seven years and likes the idea of an optional index-linked sleeve without giving up principal protection. It's a weaker fit for someone who needs income guarantees built in, wants full liquidity before year seven, or lives in one of the states where it isn't currently approved.

The main draw is rate. A 6.15% fixed rate (at the higher premium/rate tier) is competitive for a 7-year MYGA, and the option to allocate part of the premium to a performance-triggered index strategy gives access to upside that a plain fixed-rate contract can't offer. Someone who wants certainty but also wants a shot at a higher credited rate in a positive market year would find this appealing. The full-account-value death benefit and the terminal illness/extended care waivers add practical flexibility that a bare-bones MYGA often skips.

I think this is best for a retirement saver in their 50s to 70s who has non-qualified or qualified money they don't need for at least seven years, wants a guaranteed floor on part of the contract, and is comfortable with the idea that the index-linked portion could credit nothing in a down year. It's less suited to someone who wants guaranteed lifetime income, needs more than 10% liquidity per year, or lives in a state where the product isn't filed.

You're not buying stock market exposure, even on the index-linked side. You're buying an insurance contract that credits interest two different ways: a straightforward fixed rate on the portion you allocate there, and a company-declared rate on the index-linked portion that only pays out if the S&P 500's growth is positive over the measurement period — it pays that declared rate regardless of how much the index actually gained, and it pays nothing if the index is flat-to-negative in the wrong direction. Either way, your principal isn't directly exposed to index losses; the insurer is taking that risk, priced into the rates it offers.

The core feature is the split-crediting structure. Per the current rate sheet (effective October 2, 2025), the fixed account credits 5.80% or 6.15% depending on premium tier, using simple interest rather than compounding — worth noting since simple interest grows more slowly than compound interest over a multi-year term. The index-linked, performance-triggered account tied to the S&P 500 credits 7.60% or 8.00% depending on tier, but only when the index's growth over the measurement period is positive; a flat or negative year credits zero on that sleeve. Up to 50% of premium can be allocated to the performance-triggered strategy, meaning this isn't an all-or-nothing choice — you can split premium between the guaranteed fixed side and the index-linked side based on your own risk appetite.

The secondary feature worth flagging is the death benefit and waiver package. The death benefit pays the full account value, with no surrender charge deducted — a meaningful protection since some MYGAs apply surrender penalties even at death. Ibexis also includes extended care and terminal illness waivers, which can let a policyholder access funds without the usual surrender charge if a qualifying health event occurs. Neither of these is unique to Ibexis, but together they round out a contract that's more than just a rate quote.

You're trading seven years of full liquidity for the locked rate and index-linked option. After the first contract anniversary, you can withdraw up to 10% of the previous year's account anniversary value free of surrender charges, subject to a $500 minimum withdrawal and a requirement to leave at least $2,000 in the account. Anything above that free amount during the surrender period is subject to both the surrender charge schedule below and a market value adjustment (MVA) — meaning the penalty on a larger withdrawal can move up or down with interest rates at the time you take it, not just follow the stated surrender percentage. This isn't a contract to fund with money you might need in a lump sum before year seven.

There's no income rider here, so there's no rider fee to weigh — one thing this product doesn't ask you to pay for. The tradeoffs are structural rather than fee-based: the index-linked sleeve caps your potential in a strong market at the declared performance-triggered rate (you don't get more credit for a bigger index gain), and it credits zero in a down or flat year. The MVA adds real uncertainty to early withdrawals — it can make an early surrender either cheaper or more expensive than the stated charge, depending on where rates have moved. And simple interest on the fixed side means the effective yield over seven years is lower than a compound rate of the same headline percentage would produce.

Legal Entity: Ibexis Life & Annuity Insurance Company

A.M. Best Rating: A-