Why it earned this rating
Our assessment
The SPDA Series II 3-Year earns a solid rating because its structure is straightforward and its 1% interest rate bonus in year one adds a modest lift, but the mismatch between the 3-year guarantee window and the 7-year surrender period is a real limitation that places it a tier below more competitive MYGAs that lock the rate for the full surrender term. The A+ AM Best rating from Western & Southern and the nursing home and hardship waivers add genuine value, but they are not enough to move this into strong-option territory.
The short version
This is a 3-year guaranteed-rate fixed annuity from Integrity Life — part of the Western & Southern Financial Group — wrapped inside a 7-year surrender schedule. If your goal is certainty for three years with a name-brand carrier and a clean, no-fee structure, this works. But the math turns uncomfortable if you hold past year three and the renewal rate disappoints, and the 7-year commitment is real the entire time.
Key facts
The full review
Is Integrity SPDA Series II 3-Year a Good Annuity?
It depends on your time horizon. If you have money you genuinely do not need for seven years and want a safe, predictable base for the first three, this is a reasonable choice from a well-rated carrier. If you are primarily shopping on the 3-year rate and assume you will exit cleanly at year three, pay close attention to the surrender schedule — charges run through year seven, so you are not actually committing to just three years.
Why Someone Would Buy This Annuity
The rational case is straightforward: Integrity carries an A+ AM Best rating from Western & Southern, the product charges no ongoing fees, the $3,000 minimum is low enough for smaller accounts, and the guaranteed rate for the first three years gives a clear planning anchor. The nursing home and terminal illness waivers add a practical safety net. For a conservative buyer who wants a guaranteed return and is comfortable not touching the money for several years, this product delivers what it promises.
Who This Annuity Is Best For
I think this annuity is best for a conservative, near-retiree or retiree with money they are confident they will not need in full for at least seven years, who wants a clean fixed-rate structure without any index complexity or income rider. It works well for IRA rollover money that is already earmarked as a safety-of-principal reserve rather than a primary growth vehicle. It is less appealing for anyone shopping on rate competitiveness against other MYGAs, or for someone who expects to exit at year three.
What You're Really Buying Here
You are buying a guaranteed interest rate for three years, followed by annual renewal rates set by the carrier for the remaining four years of the surrender period. The 7% opening surrender charge is real, and it stays at 7% for the first three years before stepping down. The 1% first-year interest rate bonus is not cash credited to your account value at issue — it temporarily increases the interest rate you earn in year one only. That distinction matters because some buyers hear "bonus" and assume their account starts larger. It does not.
How the Core Feature Works
The crediting is simple: Integrity credits a fixed interest rate to your account each year. For the first three years, that rate is guaranteed at 3.95% as of April 2026. In year one, the credited rate is effectively 4.95% due to the 1% interest rate enhancement. After the initial three-year guarantee period, the contract shifts to annual renewal rates that Integrity sets at its discretion, subject only to the 1% minimum guaranteed interest rate floor. That floor means your account will never actually shrink from credited interest, but it could grow very slowly if renewal rates track near the minimum.
Why the Secondary Feature Matters
The most meaningful secondary feature is the nursing home and long-term care confinement waiver, along with waivers for terminal illness, unemployment, and RMD treatment. In a fixed annuity built around principal protection, these hardship provisions genuinely matter — they give you an exit ramp in the situations most likely to create urgent cash needs during a 7-year commitment. The RMD waiver is particularly relevant for IRA money: required distributions will not trigger surrender charges, which removes one of the more common friction points for older buyers. Note that some of these waivers have state-specific restrictions, so confirm availability in your state before relying on them.
Liquidity and Surrender Schedule
You can withdraw up to 10% of account value per contract year without charge, available immediately from day one. That is a meaningful liquidity provision — it means a $100,000 premium holder can access $10,000 per year without penalty. However, anything above the 10% free withdrawal triggers the surrender schedule below through year seven.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 4% |
| 7 | 3% |
There is no market value adjustment on this product, which removes one layer of unpredictability on surrenders. The money-back guarantee is also worth noting: if you do a full withdrawal, you receive at least your original contribution less prior partial withdrawals. That floors your worst-case outcome if you need out entirely.
Fees and Tradeoffs
There are no base contract fees and no rider fees. The rate you see is the rate you earn. The only real cost is the interest rate spread the carrier keeps internally, which is standard and not separately disclosed on fixed annuities.
The main tradeoffs are structural. The 3-year guarantee period is shorter than the 7-year surrender period — that gap creates risk if renewal rates step down materially in years four through seven. You are also giving up upside beyond the fixed rate; there is no index participation and no income rider option. For buyers comparing this to MYGAs that lock the rate for the full surrender period, the renewal-rate risk is a legitimate concern that warrants side-by-side shopping.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 7 years |
| Issue Ages | 18–85 |
| Minimum Premium | $3,000 |
| Crediting Methods | Fixed interest rate |
| Free Withdrawal | 10% of account value per contract year (noncumulative); available immediately |
| MGSV | 100% of premiums less prior withdrawals at 1% minimum guaranteed interest rate |
| Death Benefit | Full account value at time proof of death is received |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not available in ME, NH, NY, VT. Variations approved in IN, MO, OR, PA, WA. In NY, issued by National Integrity Life Insurance Company. Hardship waivers not available in MO; unemployment waiver not available in IN, PA, WA. |
Carrier snapshot
Legal Entity: Integrity Life Insurance Company
Parent: Western & Southern Financial Group
AM Best Rating: A+
Final take
The SPDA Series II 3-Year is a clean, fee-free fixed annuity from a carrier with strong financial backing. It delivers what it advertises for the first three years. The 3.95% guaranteed rate and the 1% first-year interest rate enhancement are real, and the hardship waivers provide meaningful flexibility.
Where it falls short is the commitment asymmetry. A "3-year" product that carries a 7-year surrender schedule is not truly a 3-year annuity for most shoppers. If you are comparing this to a MYGA that locks the same rate for the full surrender term, that competing product gives you more certainty for the same period. For buyers who understand this structure, are comfortable with the renewal-rate risk in years four through seven, and want a simple, no-fee principal-protection vehicle from a highly rated carrier, this is a reasonable fit. For buyers primarily shopping on rate certainty, look at whether a full-term MYGA from a comparable carrier better matches your needs.