RateProtector 5-Year review

Yes, for the right buyer. If you have money you can commit to five years, want a guaranteed rate from a financially sound carrier, and value an RMD carve-out or the extended-care waiver, this is a reasonable choice. If you might need access beyond the 10% free amount, or if you are mainly shopping for index-linked growth potential or lifetime income, this is not the right structure.

The main reason to choose RateProtector 5-Year is to lock in a fixed guaranteed rate for five years without the complexity or fee load of an FIA or annuity with riders. The secondary reason is the RMD treatment — qualified-account holders can take required distributions without triggering surrender charges or MVA, which makes this easier to hold inside an IRA than many competing MYGAs. The extended-care and terminal-illness waivers provide meaningful emergency access starting in year two, which also reduces the cost of committing to the full term.

I think RateProtector 5-Year fits best in one of two situations. The first is a pre-retiree or retiree with qualified dollars who wants a safe, tax-deferred rate commitment and needs to know RMDs can be taken cleanly. The second is a conservative saver — any age, qualified or non-qualified — who wants something more structured than a bank CD and less volatile than a market-linked product. It is less appealing for someone who expects to need significant liquidity within the five years, wants a chance at higher returns through indexing, or wants a guaranteed income stream.

You are buying a guarantee. The carrier promises a specific interest rate for five years, and that rate does not move with the market. The growth is tax-deferred until you withdraw, and the death benefit passes the accumulated value to beneficiaries without a surrender charge. What you are giving up is flexibility: any withdrawal beyond 10% per year before year six triggers a surrender charge and a market value adjustment. The MVA is the subtler risk — it means the actual penalty can be larger or smaller than the schedule alone suggests depending on whether interest rates have gone up or down since you purchased.

RateProtector 5-Year credits a single fixed interest rate, guaranteed for the full five-year term. As of the April 2026 rate sheet, that rate was 4.65% for premiums below $100,000 and 4.95% for premiums of $100,000 or more. Both are guaranteed for the contract's duration — the rate does not reset annually, is not subject to caps or participation rates, and is not tied to any index. Interest compounds and accumulates tax-deferred until distributions begin.

The rate tier structure rewards larger deposits. If you are near the $100,000 threshold, it may be worth discussing with an advisor whether consolidating funds from other accounts to qualify for the higher band makes sense in your situation.

The waiver provisions are more useful than they might sound on paper. The extended-care waiver allows up to 100% of the accumulated contract value to be withdrawn without surrender charges if you are confined to a nursing home or hospital for 90 consecutive days. The terminal-illness waiver provides the same access if you are diagnosed with a condition expected to result in death within 12 months. Both provisions are available starting in contract year two, and each carries a $250,000 maximum. For a product with a five-year lockup, these waivers genuinely reduce the real-world risk of needing the money during a health crisis.

This product is designed as a five-year commitment. In the first contract year, up to 10% of premiums paid can be withdrawn without charges. In years two through five, up to 10% of the accumulated contract value (determined at the beginning of each contract year) is free. Withdrawals beyond that are subject to the schedule below and to an MVA — the Market Value Adjustment — which means actual surrender costs fluctuate with interest rate movements. If rates have risen since you bought the contract, the MVA works against you; if rates have fallen, it may work in your favor.

RMDs attributable to the contract can be taken free of withdrawal charges and MVA, even if they exceed the 10% free amount. This is an important provision for anyone holding this in an IRA or other qualified account.

There are no base contract fees and no rider fees — this is a fee-free MYGA in the traditional sense. The cost is structural: you accept a locked rate and a surrender schedule in exchange for the guaranteed return. The most meaningful tradeoff is the MVA. Unlike a plain surrender charge, the MVA is not a fixed number — it adjusts based on interest rate conditions at the time of the withdrawal. That adds a layer of uncertainty to early surrender costs that the charge schedule alone does not capture.

There is also an implicit yield tradeoff: MYGA rates are set at issue, so if market rates climb after you lock in, you will lag what newer contracts are offering for the remaining term.

Legal Entity: Jackson National Life Insurance Company

A.M. Best Rating: A

Jackson National Life is a major annuity carrier with broad national distribution and a long track record in the fixed and variable annuity markets. The A rating from A.M. Best signals financial strength within the industry's upper tier, though it is not the highest possible grade.