MYGuarantee Plus 5 review

Yes, for the right buyer. This is a good annuity for someone whose goal is principal protection with a guaranteed rate and no moving parts. It is less interesting for someone looking for index-linked upside, a built-in income stream, or an enhanced death benefit beyond full account value.

The product earns a straightforward endorsement within its category. A Lincoln MYGuarantee Plus 5 buyer is typically someone who wants to know exactly what rate they will earn over five years, wants the backing of a major carrier, and does not need the account to do anything other than grow at that rate. For that buyer, this does its job well.

The primary reason is certainty. A MYGA is, in its simplest form, a contract that says: put money in, earn this fixed rate for this many years, and get the result at the end. Lincoln MYGuarantee Plus 5 delivers that in a standard 5-year term with a reputable carrier behind it.

The secondary reason is safety of principal. There is no market exposure here. The account does not go down because an index fell. That combination — a locked-in rate, guaranteed principal, and a 5-year term — is exactly what a MYGA is designed to offer, and this one hits those marks cleanly.

I think Lincoln MYGuarantee Plus 5 is best for someone who has a defined block of money they do not need for at least 5 years and wants to earn a competitive guaranteed rate without taking on market risk or paying for features they will not use. It also works well as a component of a broader retirement strategy alongside other accounts rather than as someone's only retirement vehicle.

It is less suitable for someone who expects frequent access to principal above the 10% free-withdrawal amount, wants index-linked growth potential, or is shopping primarily for guaranteed lifetime income. It is also less interesting if the deposit is small enough to fall in the lower rate tier and a competing MYGA offers meaningfully better terms on that premium amount.

You are buying a contract that guarantees a fixed rate of return for 5 years. The money is not in the market. Your principal is protected from market losses. At maturity, you can take the money, renew, or roll it into another contract. There are no crediting strategies to choose, no index allocations to manage, and no rider elections to make. The simplicity is the point.

Lincoln MYGuarantee Plus 5 credits a fixed interest rate guaranteed for the full 5-year contract period. The rate is declared at issue and does not change during the surrender period. According to available materials, current rates are approximately 3.65% to 4.75%, with the higher rate available at a larger premium band. The specific tier cutoffs and current declared rates should be confirmed directly with Lincoln or a licensed agent, as rates can change and the spec indicates a two-band structure with variation by deposit size.

At the end of the 5-year period, the full account value is available without surrender charges or MVA. During the term, the 10% annual free-withdrawal provision gives some liquidity without triggering charges, subject to the $5,000 account minimum requirement.

The most meaningful secondary feature on this contract is the Market Value Adjustment. Unlike some MYGAs that only impose a percentage-based surrender charge for early withdrawals, Lincoln MYGuarantee Plus 5 also applies an MVA on amounts withdrawn above the free allowance during the surrender period. The MVA can adjust the surrender value either up or down depending on interest rate movement since issue. In a rising rate environment, the MVA can work against you, reducing what you receive beyond the stated surrender charge. In a falling rate environment, the MVA may work in your favor.

This is worth understanding before buying. The MVA is standard for many MYGAs, but buyers accustomed to simple fixed annuities without an MVA feature should factor this into their liquidity planning.

Lincoln MYGuarantee Plus 5 allows free withdrawals of up to 10% of account value per contract year beginning in year one, subject to a $5,000 remaining minimum balance. Withdrawals above that amount are subject to both surrender charges and an MVA.

The surrender schedule is 7%, 7%, 6%, 5%, 4% over years one through five. That is a moderately steep front-end load that steps down to 4% in year five, which is a reasonable pattern for a 5-year product.

Two surrender-charge waivers are available: Nursing Home Confinement and Terminal Illness. These provide some liquidity relief in hardship situations, though the terminal illness waiver is not available in Massachusetts.

RMDs from this contract are treated favorably for buyers who need to take required minimum distributions from IRA-qualified funds.

There are no annual contract fees, no rider fees, and no asset charges on this product. The cost of ownership is embedded in the spread between the rate Lincoln credits and what they earn on the underlying assets. That is standard MYGA economics.

The tradeoffs are mainly structural. Rate competitiveness depends on the deposit amount and the rate environment at the time of purchase. The MVA adds a layer of complexity to early-exit math that a straight surrender charge does not. The product has no upside potential beyond the declared rate, and it offers no income rider if needs change. And the product is not available in California or New York, with state-specific variations in Florida and Massachusetts.

Legal Entity: The Lincoln National Life Insurance Company

Parent: Lincoln Financial Group

A.M. Best Rating: A

Lincoln Financial Group is one of the larger and more recognizable names in the U.S. life insurance and annuity market. The A rating from A.M. Best reflects solid financial strength. Lincoln distributes primarily through the advisor channel, which means this product is typically purchased with the help of a financial professional rather than directly. That is worth noting for buyers used to shopping for MYGAs on rate aggregator platforms.