SPDA Series II 5-Year review

It depends on how much the 7-year surrender window bothers you. If you have genuinely long-term money, this is a solid, fee-free fixed annuity from an A+ carrier with a competitive guaranteed rate and useful hardship waivers. If you're shopping for a true 5-year product — one where the surrender period expires when the rate guarantee does — you'll want to compare this carefully against 5-year MYGAs from other carriers before deciding.

The main reason is certainty. You know what rate you're earning for five years, there are no moving parts, and you're backed by a carrier that's part of Western & Southern Financial Group with an AM Best A+ rating. The very low $3,000 minimum makes this accessible to buyers who don't have large lump sums to deploy. The 10% free-withdrawal provision, available from day one, also means someone who needs to take a modest distribution each year — including RMDs from a qualified account — can do so without triggering penalties.

I think SPDA Series II 5-Year fits best for someone in their 60s or 70s who has conservative money they don't plan to touch, wants a guaranteed rate rather than index-linked growth, and values the financial strength of the issuing carrier. It also works for someone rolling a smaller IRA or qualified balance who needs RMD-friendly terms. It is less suitable for someone who may need full access to the account in years 6 or 7, anyone shopping for income rider features, or buyers who want to align their surrender period exactly with their rate guarantee.

You're buying a simple guarantee: put in money, earn a fixed rate for five years, and have access to the full account value after seven. There's no index tracking, no caps or participation rates to analyze, and no rider fees eating into returns. The contract earns 3.85% on your principal, compounded annually. The year-one interest rate bonus of 1.00% applies to the first-year earnings — it adds to the credited rate in year one but does not increase your account value at issue (it's not a premium bonus). What you're really giving up in exchange for that certainty is flexibility: you cannot exit without penalty until year 8.

The SPDA Series II 5-Year credits a guaranteed fixed interest rate of 3.85% annually for the five-year guarantee period. In year one, a 1% interest rate bonus is applied, so effective first-year earnings are higher, but this is a crediting-rate enhancement, not a cash bonus on your deposit. After the five-year guarantee period, the contract renews at whatever rate Integrity offers at that time, subject to the contract's stated minimum guaranteed interest rate of 1%. The surrender schedule extends two years beyond the rate guarantee, which means during years 6 and 7 you're earning a renewal rate — which could be higher or lower than 3.85% — while still subject to surrender charges of 4% and 3% respectively.

The most useful secondary feature here is the trio of hardship waivers: nursing home confinement, terminal illness, and unemployment. These are available without an additional fee, which is meaningful on a product this simple. In practice, they matter most for buyers in their 60s who are committing money they might need in an emergency. If you're confined to a nursing home, diagnosed with a terminal illness, or face involuntary unemployment, the surrender charge is waived — giving you access to your full account value. Note that the unemployment waiver is not available in Indiana, Pennsylvania, or Washington, and the hardship waivers generally are not available in Missouri.

You can withdraw up to 10% of your account value each contract year without penalty, and that provision is available immediately — not delayed until year 2. That's useful for RMD planning on qualified money, and Integrity specifically notes that RMDs may qualify for surrender charge waivers in addition to the free-withdrawal provision. There is no market value adjustment on this product, which removes a layer of uncertainty that buyers sometimes face on other fixed annuities.

Withdrawals beyond the 10% free amount are subject to the following schedule:

The contract also carries a money-back guarantee: withdrawal charges are waived to the extent they would reduce your value below your original contribution, and the minimum guaranteed interest rate is 1%.

There are no base contract fees and no rider fees because there are no riders. The only costs embedded in this product are opportunity costs — the spread between the rate Integrity earns on its general account portfolio and what it pays you — which is standard for any fixed annuity and not disclosed separately.

The real tradeoffs here are structural. First, the 7-year surrender window on a "5-year" product means two years of renewal-rate exposure while still penalized for exit. Second, the guaranteed rate is fixed for only five years — if rates fall at renewal, your return in years 6 and 7 could be meaningfully lower. Third, the $1,000,000 maximum for ages 0–75 and $500,000 for ages 76–85 limits how much you can deploy in this product at once.

Legal Entity: Integrity Life Insurance Company

Parent: Western & Southern Financial Group

AM Best Rating: A+