New Momentum 7-Year review

Yes, for the right buyer. If you want a guaranteed fixed rate for seven years with a highly rated insurer and no rider complexity, this product does what it is designed to do. It is less appealing if you want the flexibility to exit early without MVA risk, need income rider functionality, or are in one of the excluded states.

The rational case for New Momentum 7-Year is straightforward: a locked guaranteed rate, zero base contract fees, a carrier with an A+ AM Best rating from Western & Southern Financial Group, and a low $2,000 entry point that makes it accessible to buyers who are not moving six-figure sums. The immediate 10% free-withdrawal provision is also better than many fixed annuities that require you to wait until the second year to access any money penalty-free.

I think this product is best for a conservative buyer in or approaching retirement who wants a multi-year guaranteed rate without any exposure to market indices or rider fees. The $2,000 minimum makes it workable for smaller IRAs or non-qualified accounts. The 0-85 issue age range means it can fit qualified money at younger ages as well, though most buyers in this product will likely be adults looking to lock a fixed yield. It is not a fit for someone who wants index participation, income guarantees, or who anticipates needing more than 10% of their balance in any given year during the surrender period.

You are buying a promise from Integrity Life Insurance Company — backed by Western & Southern Financial Group — to credit your account at a declared fixed rate for seven years and return your principal plus accumulated interest at the end of the term. Unlike a bank CD, this is an insurance contract. The earnings are tax-deferred until withdrawal, and the death benefit provides the account value to your beneficiaries without a surrender charge. What you are not buying is market upside or any kind of income benefit — this is purely a principal-preservation and yield vehicle.

New Momentum 7-Year uses what Integrity calls a Guaranteed Rate Option (GRO). The current declared rate as of the brochure date is 3.65% for the full seven-year period. However, that headline rate includes a 0.75% first-year interest rate enhancement. Practically, this means the rate you earn in year one is higher than the rate you earn in years two through seven. After year one, the rate drops by 0.75% and stays at that lower level for the remaining six years of the GRO period. The minimum guaranteed interest rate for the life of the contract is 1%, which is the contractual floor.

There is also a Quarterly Interest Option that credits interest four times a year, which may appeal to buyers who want regular crediting rather than annual accumulation. The contract minimum guaranteed rate of 1% applies regardless of which option is selected.

The most meaningful secondary feature here is the suite of hardship waivers. Integrity includes a withdrawal charge waiver for nursing home confinement, terminal illness, and unemployment — subject to state restrictions. These waivers mean the surrender charges and MVA can be set aside if you face a genuine health or financial emergency during the surrender period. That is not a unique feature in the fixed annuity space, but it matters because the seven-year commitment is long and life circumstances change. The nursing home waiver in particular makes this contract more acceptable for buyers in their late 70s or 80s who might otherwise be hesitant to lock up money for that long.

Liquidity here is decent for a seven-year product. The 10% annual free withdrawal kicks in from the contract issue date, not the second year — that is a buyer-friendly term. RMDs from qualified accounts may also qualify for withdrawal charge and MVA waivers, which matters for buyers who are already taking required distributions from an IRA.

The surrender schedule itself is 8% in year one, declining to 2% in year seven, then 0% after the surrender period ends. The number to pay attention to is that a market value adjustment also applies to surrenders above the free-withdrawal amount throughout the seven-year period. The MVA can work in your favor or against you depending on where interest rates are when you surrender — if rates have risen since you bought the contract, the MVA will add to your penalty; if rates have fallen, it could partially offset the surrender charge. Your effective exit cost is therefore not fully predictable if you leave early. The MGSV provides a contractual floor: your account will not be reduced below the contribution amount (adjusted for withdrawals) compounded at the minimum guaranteed rate, minus any MVA.

The base contract fee is zero. There are no rider fees because no rider is offered. That makes this one of the cleaner cost structures in the fixed annuity category.

The tradeoffs are structural rather than fee-based. The first-year rate enhancement flatters the advertised rate but does not represent what you earn across all seven years — a careful buyer should calculate the blended yield across the full GRO period. The MVA adds unpredictability to early surrender costs. And the product is not available in California, Michigan, Oregon, or Washington, with New York handled by a separate issuing entity (National Integrity Life Insurance Company) under different terms.

Legal Entity: Integrity Life Insurance Company

Parent: Western & Southern Financial Group

AM Best Rating: A+