MYGuarantee Plus Class 5-Year review

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

The product earns a straightforward endorsement within its MYGA category. A buyer here is typically someone who wants to know exactly what rate they will earn over five years, wants Lincoln's financial backing, and does not need the account to do anything other than grow at that guaranteed rate. For that profile, this delivers 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 Class 5-Year delivers that in a standard 5-year term backed by a major carrier.

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 commitment — is what this product is designed to offer, and it hits those marks cleanly.

I think Lincoln MYGuarantee Plus Class 5-Year 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 one component of a broader retirement strategy rather than someone's only 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 primarily shopping for guaranteed lifetime income. Buyers below the $100,000 premium threshold should also compare the lower rate tier against competing MYGAs, since the rate gap between tiers is meaningful here.

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 access annuitization options that become available after the fifth contract year. 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 Class 5-Year 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. Current rates are 3.65% for deposits below the premium band threshold and 4.90% for deposits of $100,000 or more. The $100,000 band rate is notably higher and changes the math meaningfully for buyers near that threshold. These figures are snapshots and should be confirmed with Lincoln or a licensed agent at the time of purchase, as rates can change.

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. After the fifth contract year, annuitization options also become available for buyers who want to convert the contract into a stream of income.

The most meaningful secondary feature on this contract is the Market Value Adjustment. Unlike some fixed annuities that only impose a percentage-based surrender charge for early withdrawals, this product 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, it may work in your favor.

Notably, the MVA does not apply to death benefit payments, to the 10% annual free-withdrawal amount during the initial rate guarantee period, or to withdrawals taken after the initial rate guarantee period. That is a meaningful carve-out that limits the MVA's reach to the most relevant early-exit scenarios.

Lincoln MYGuarantee Plus Class 5-Year allows free withdrawals of up to 10% of account value per contract year during the surrender charge period. Withdrawals above that amount are subject to both surrender charges and an MVA. After the initial 5-year rate guarantee period ends, full withdrawal is available without surrender charges or MVA.

Two waivers provide liquidity relief in hardship situations: the Waiver of Surrender Charges for Nursing Home Confinement and the Terminal Illness Rider. The nursing home waiver is not available in Massachusetts. The MVA does not apply to the death benefit, to the 10% free-withdrawal amount, or to withdrawals taken after the initial guarantee period expires. Even with these provisions, this product is best used with money not earmarked for short-term cash needs.

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 heavily on deposit size — the gap between the sub-$100,000 rate (3.65%) and the $100,000-or-more rate (4.90%) is large enough that buyers near that band should compare carefully before committing a smaller amount. The MVA adds a layer of complexity to early-exit math that a straight surrender charge does not. The product has no upside beyond the declared rate and offers no income rider. And it 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 (low confidence — verify current rating)

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, though this rating should be verified at the time of purchase as ratings can change. Lincoln distributes primarily through the advisor channel, which means this product is typically purchased with the help of a financial professional rather than directly.