Why it earned this rating
Our assessment
Max Elite Guarantee 5-Year is a well-structured MYGA from a carrier with an A+ A.M. Best rating, a rate differential that rewards larger deposits, and a straightforward 5-year commitment. The MVA is a real risk in a rising-rate environment, but the product is otherwise clean and competitive within the short-duration MYGA peer group.
The short version
This is a 5-year guaranteed-rate annuity for savers who want a CD-like commitment with slightly better tax treatment and the backing of a highly rated carrier. There are no moving parts here — no index strategies, no income riders, no caps or participation rates to track. You lock in a rate for five years, your interest compounds daily, and at the end of the period the money is fully accessible. For buyers with money they are genuinely comfortable not touching for five years, this is a straightforward option.
Key facts
The full review
Is North American Max Elite Guarantee 5-Year a Good Annuity?
Yes, for the right buyer. If you have five-year money, want a guaranteed rate from a strong carrier, and do not need an income feature, this is a clean and competitive MYGA. It is less appealing for anyone who might need more than 10% of the balance in a given year, or who is sensitive to MVA risk in a rising-rate environment.
Why Someone Would Buy This Annuity
The rational case for this product starts with the rate and the carrier. North American carries an A+ A.M. Best rating through Sammons Financial Group, and the 5-year guaranteed rate — with a meaningful bump at $100,000 and above — is the entire value proposition. Someone who has shopped CDs and wants slightly better tax deferral and a locked-in rate for a defined window will find the structure familiar. The lack of complexity is part of the appeal.
Who This Annuity Is Best For
I think this product fits best for someone in or near retirement who has a defined chunk of money they genuinely do not expect to touch for five years — retirement account rollovers, proceeds from a real estate sale, or conservative savings earmarked for a specific future need. The wide issue-age band of 0-90 makes it accessible for older buyers who often get shut out of longer-duration products. It is not a fit for anyone who needs regular access above the free-withdrawal floor, or who is shopping for guaranteed lifetime income.
What You're Really Buying Here
You are buying a fixed-rate insurance contract that guarantees a specific interest rate for five years. The insurance wrapper means earnings grow tax-deferred until you take withdrawals, which is an advantage over a taxable CD in years of compound growth. The carrier is taking on the interest-rate risk in exchange for the 5-year commitment. What you are not buying is any index exposure, growth leverage, or income guarantee — this is as close to a CD structure as annuities get.
How the Core Feature Works
The crediting is straightforward. A fixed rate is declared at issue and guaranteed for the full 5-year period. Interest is credited daily on the accumulation value. There are two rate bands: a standard rate for deposits under $100,000 and a higher rate for deposits of $100,000 or more. As of the brochure date, the low-band rate was 4.60% and the high-band rate was 4.85%. These are locked at contract issue — they do not reset annually and cannot be changed during the 5-year period.
After the guarantee period ends, the contract shifts to an annually renewable rate with no surrender charge or MVA. You can also choose to annuitize or surrender at that point without penalty.
Why the Secondary Feature Matters
The 10% annual free-withdrawal provision is the most meaningful secondary feature for a 5-year MYGA. In practical terms, it means you are not completely illiquid — if an unexpected need arises, you can take up to 10% of the beginning-of-year accumulation value in any given contract year without triggering a surrender charge or MVA. For someone using this in an IRA, it also handles most reasonable RMD amounts without penalty. The feature does not eliminate the surrender risk, but it provides a real pressure valve for moderate withdrawals.
Liquidity and Surrender Schedule
Liquidity is the main risk to understand before buying any MYGA, and it is worth reading carefully here. The 10% annual free withdrawal is available from day one. Amounts above that are subject to the surrender schedule below, and an MVA — Market Value Adjustment — also applies during the surrender period.
The MVA means the effective early-exit cost is not just the percentage listed in the schedule. If market interest rates have risen since your contract was issued, the MVA will increase your penalty. If rates have fallen, it may reduce your cost. In a stable or declining rate environment the MVA is largely neutral or beneficial, but in a rising-rate environment it can add meaningful cost to an early exit. Do not buy this product with money you may need to access in full before the 5 years are up.
The nursing home confinement waiver is available in most but not all states, so confirm availability if that coverage matters to you.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 0% |
Fees and Tradeoffs
There are no contract-level fees on this product. No base fee, no rider fee, no annual account charge. The cost structure is entirely embedded in the rate North American offers versus what they could pay without taking on the guarantee — which is the standard MYGA model. What you see in the declared rate is what you get.
The tradeoffs are structural rather than fee-based. The surrender schedule starts steep at 9% in year one. The MVA introduces uncertainty for anyone who might exit early. There is no income feature, so this is not useful for buyers whose primary need is lifetime withdrawals. And once the rate is locked, you cannot benefit from rising rates during the 5-year window.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 5 years |
| Issue Ages | 0-90 |
| Minimum Premium | $20,000 |
| Crediting Methods | Fixed interest rate |
| Free Withdrawal | 10% of beginning-of-year accumulation value each year |
| MGSV | 87.5% of all premiums at 1-3% |
| Death Benefit | Full accumulation value paid to beneficiaries as immediate lump sum or installments; may avoid probate |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not available in ID, NY, OR. Nursing home confinement waiver not available in all states. |
Carrier snapshot
Legal Entity: North American Company for Life and Health Insurance
Parent: Sammons Financial Group
A.M. Best Rating: A+
Final take
Max Elite Guarantee 5-Year is a clean, no-frills MYGA backed by a carrier with one of the stronger financial-strength ratings in the industry. If you have a defined five-year time horizon, want a guaranteed rate, and are not looking for index exposure or lifetime income features, this delivers exactly what it promises.
The main reasons to look elsewhere: if you need liquidity above 10% per year, if you are concerned about MVA exposure in a rising-rate environment, or if your primary goal is lifetime income. For buyers who genuinely have 5-year money and want certainty, this is a solid option in its peer group.