SPDA Series II 7-Year review

Yes, for the right buyer. This is a good annuity for someone who wants a simple locked-rate product with strong carrier backing, no market value adjustment exposure, and a waiver suite that goes beyond the standard nursing home provision. It is less appealing for buyers shopping on rate alone, since the 3.75% guaranteed rate (as of April 2026) is competitive but not a market-leading figure, and for buyers who may need access to more than 10% per year — the front-end surrender charges are heavy.

The main reason to buy this product is certainty: a guaranteed rate for the full seven-year period from a carrier rated A+ by A.M. Best. The secondary reasons are structural. No MVA means that if you have to surrender during the penalty period, you only face the stated surrender charge — not an additional rate-driven haircut. Immediate free-withdrawal access (not delayed to year two as many MYGAs require) means you can take up to 10% of account value per year from day one without triggering a charge. And the waiver suite covers scenarios — terminal illness, nursing home confinement, and unemployment — that most MYGA buyers hope to never need but appreciate having.

I think this product is best for someone in their mid-50s to mid-70s who has a clear seven-year time horizon, wants principal protection with a guaranteed return, and is not trying to maximize upside by chasing the top MYGA rate in the market. It works well inside a qualified account (IRA, SEP-IRA) given the RMD-friendly free-withdrawal terms, and the $3,000 minimum makes it accessible to buyers funding smaller accounts or testing a new carrier relationship. It is less well-suited for someone who might need more than 10% of the account in any given year, or someone primarily shopping for the highest available rate in the 7-year space.

You are buying a contractual guarantee: Integrity agrees to credit your account at a fixed rate for seven years, and Western & Southern's insurance group backs that promise with an A+ balance sheet. There is no indexing, no subaccount performance, and no variable outcome. The rate does not fluctuate with the market during the guarantee period. When the seven years are up, the contract is credited with a renewal rate — that renewal rate is not disclosed in advance and is set by the company at the time of renewal. That renewal mechanic is worth understanding before you commit, because the seven-year rate is the known quantity; what comes after it is not.

The contract credits a fixed guaranteed interest rate for the full seven-year surrender period. The current rate as of April 2026 is 3.75% per year, with an additional 1% interest rate bonus applied in year one only — so the effective credited rate in year one is 4.75%, dropping back to 3.75% in years two through seven. That bonus is a crediting enhancement, not a premium or account-value bonus; it does not affect the surrender value calculation or inflate your account balance at issue. The minimum guaranteed interest rate is 1% across all approved states, which functions as a contractual floor if the company ever needs to set a renewal rate.

At the end of the guarantee period, Integrity sets a new annual renewal rate. Policyholders can accept the renewal rate, 1035-exchange to a new contract, or begin withdrawals at that point without further surrender charges.

The most meaningful secondary feature here is the absence of a market value adjustment. Many fixed annuities — especially longer-duration MYGAs — apply an MVA on surrenders or large withdrawals during the penalty period. The MVA adjusts your surrender proceeds up or down based on how interest rates have moved since issue. If rates have risen, an MVA can meaningfully increase the effective penalty. The SPDA Series II 7-Year does not have an MVA, which means the surrender schedule you see in the brochure is the complete picture of what a surrender will cost. That is a real structural advantage for buyers who are uncertain about whether they will hold the full seven years.

The contract allows free withdrawals of up to 10% of account value per contract year, with one important distinction from many MYGAs: this is available immediately from issue, not deferred to the second contract year. The minimum withdrawal is $300, or $100 through the systematic withdrawal program. Amounts above the free-withdrawal allowance are subject to the following charges:

The front-loaded structure — three consecutive years at 7% — is heavier than many MYGA competitors that step down from year one. That said, the 3% charge in year seven is relatively modest by the end.

Waivers are available for nursing home confinement, terminal illness, and unemployment. The unemployment waiver is genuinely unusual for a MYGA and adds meaningful real-world flexibility. Note that the unemployment waiver is not available in Indiana, Pennsylvania, or Washington; the nursing home and terminal illness waivers are not available in Missouri. RMD withdrawals may also qualify for waiver treatment, making this a cleaner fit for qualified-account holders.

There are no base contract fees and no rider fees — this product has no optional riders. The only cost is the opportunity cost of the surrender schedule if you access more than the free-withdrawal amount early. The trade is simple: you accept a seven-year illiquidity window in exchange for a locked rate and principal protection.

The rate itself is worth independent research. The 3.75% guaranteed rate (as of April 2026) is published in the brochure, but the MYGA market is competitive and rates shift frequently. Comparing this rate against current offerings from peers before committing is straightforward — most online MYGA rate tables aggregate this.

Legal Entity: Integrity Life Insurance Company

Parent: Western & Southern Financial Group

A.M. Best Rating: A+