Select Choice Plus 3-Year review

It depends on what you're comparing it to. If you want a clean 3-year locked rate with no market value adjustment and modest optional flexibility, this is a reasonable choice. If you need built-in penalty-free access to a percentage of your money each year without paying for it, most competing MYGAs include that automatically. And if you need liquidity within the first three years beyond what the rider covers, the surrender charges are steep enough that this belongs in a bucket you don't plan to touch.

The rational reason to buy Select Choice Plus 3-Year is the combination of a short guarantee period, fixed declared rate, and the clean non-MVA design. Buyers who have been burned by bank CD interest-rate risk on early redemption may specifically prefer the non-MVA structure because it removes the variable exit cost — the surrender charge schedule is printed in the contract and doesn't change with interest rate movements. The $2,000 minimum premium also makes this accessible to buyers with smaller dollar amounts to allocate.

I think this product works best for a conservative saver in their 50s, 60s, or 70s who has a defined lump sum they want to set aside for three years, doesn't need income from it during that time, and values simplicity and predictability over maximum yield. Qualified or non-qualified money both work. It is less well-suited for someone who routinely needs annual penalty-free access without paying for it, someone with a longer time horizon who can lock into better rates in a longer-duration MYGA, or someone whose primary concern is guaranteed lifetime income.

You are buying a short-term insurance contract that credits a single fixed declared rate for three years, then lets you renew or surrender in a 30-day window. The insurance wrapper provides tax deferral on interest, a death benefit that bypasses probate, and access to waiver provisions. The rate is guaranteed for the full guarantee period regardless of what happens to interest rates in the market during those three years. What you're not buying is any market participation, any income guarantee, or any automatic liquidity — those require paying extra or are simply not available on this form.

Select Choice Plus credits a single fixed declared rate for the entire 3-year initial rate guarantee period. S.USA Life uses rate bands: the rate may be higher for deposits of $50,000 or $100,000 or more. As of the rate sheet dated September 2025, the example rates were 4.15% for the low band and 4.40% for $100,000 or more, though current declared rates can change for new contracts. The guaranteed minimum interest rate floor is 1%.

At the end of the guarantee period, S.USA Life provides a 30-day window during which the owner can surrender without penalty or roll into a new guarantee period at the then-current rate. This reset structure is standard for MYGAs and means buyers should track their contract anniversary if they want to act on the renewal window.

One important nuance: if you add optional riders, the declared rate is reduced — 0.10% for the Penalty-Free Withdrawal rider, 0.15% for the Return of Premium rider, or 0.25% if you take both. That's a straightforward and transparent cost, but it means the rate comparison you make at the point of sale should reflect which form of the contract you're actually buying.

The non-MVA design is the product's most meaningful structural distinction. Many competing MYGAs include a Market Value Adjustment that can make early surrender more or less costly depending on whether interest rates have risen or fallen since you bought the contract. In a rising-rate environment, an MVA can add significantly to what you effectively lose by exiting early. Select Choice Plus in non-MVA form removes that variable entirely — the only early exit cost is the printed surrender charge schedule. For a buyer who can't be certain they'll hold the full three years, knowing the maximum downside in advance is a real advantage.

The base contract carries no built-in free-withdrawal provision. You are committing the full premium for three years unless you add the Penalty-Free Withdrawal rider or qualify for a waiver. If you exit early on the base contract and are not covered by a waiver, the surrender charges apply in full: 9% in year one, 8% in year two, and 7% in year three. Those are steep charges for a 3-year product — most MYGAs at this duration run 3-5%, and several have no charge at all by year three.

On qualified contracts, RMD amounts are always charge-free. The Terminal Illness Waiver allows one penalty-free full or partial withdrawal if the owner is diagnosed with a terminal illness expected to result in death within one year (diagnosis must occur after the contract date). The Confinement Waiver waives charges after 90 consecutive days of skilled nursing or hospital confinement beginning after issue. These waivers are meaningful safety valves but don't substitute for a general liquidity plan.

There are no base contract fees. The fees on this product are structured as rate reductions for optional riders rather than separate annual charges: 0.10% rate reduction for the Penalty-Free Withdrawal rider, 0.15% for the Return of Premium rider, or 0.25% if you elect both. That transparency is a plus — the cost is visible at point of sale and permanent for the guarantee period.

The main structural tradeoffs are: no built-in free withdrawal (meaningful for buyers used to MYGA products that include 10% annually without charge), surrender charges that are steep relative to the 3-year duration, and a minimum premium low enough to attract smaller deposits but rate banding that gives the most competitive rate only at $100,000 or more.

Legal Entity: S.USA Life Insurance Company, Inc.

Parent: Prosperity Life Group

AM Best Rating: A-

S.USA Life is a subsidiary of Prosperity Life Group, a mid-sized insurance holding company. The A- AM Best rating reflects adequate financial strength for this type of short-duration fixed annuity obligation. Prosperity Life Group is not among the largest annuity carriers nationally, which means it has less brand recognition than some competitors, but for a 3-year commitment the carrier strength question is less acute than it would be in a 10-year product.