Secure Savings 2-Year review

It depends, but mostly no. For a buyer who specifically wants a two-year rate lock and has already vetted SILAC's financial position independently, this contract is straightforward and functional. For the average MYGA shopper comparing options, the B carrier rating and 2.60% rate will usually be disqualifying — both individually and together. I think most buyers shopping a two-year MYGA can find a cleaner deal from a carrier with a stronger financial strength rating.

The rational case for this product is narrow. A buyer might choose it if they need an RMD-friendly short-term annuity, are comfortable with SILAC's financial position after their own review, and are not finding better options at their preferred minimum premium threshold. The $10,000 minimum is accessible. The two-year term fits buyers who want a short commitment. And the clean renewal window gives them a decision point before re-committing. Those are real advantages — they are just not enough to offset the rate gap versus comparably structured competitors.

I think this annuity fits a very specific buyer: someone who already has a relationship with a SILAC-appointed agent, is comfortable with a B carrier rating after reviewing the company's financial disclosures, needs a short-term principal protection vehicle, and is not in a position to shop the broader market. Retirees managing RMDs from a small qualified account who want the shortest possible commitment window are the most plausible use case. It is less suited to buyers who are actively comparing rates across carriers, who prioritize financial strength, or who have more than a small percentage of their liquid assets involved.

You are buying a two-year interest-rate guarantee from an insurance company rated B by A.M. Best. Your principal is protected from market losses, and your interest rate is fixed for the duration — 2.60% annually, credited at the end of the guarantee period or per contract terms. At the end of year two, you have a 30-day window to surrender without charges or to accept a new guarantee period. If you exit outside that window during the two-year term, surrender charges and potentially a market value adjustment apply on amounts above the free-withdrawal limit. The death benefit passes your full account value to beneficiaries.

Secure Savings 2-Year uses a straightforward fixed crediting structure. A single rate — currently 2.60% — is guaranteed for the initial two-year guarantee period. There are no indices, no participation rates, and no caps to track. Interest accrues based on the fixed rate alone. At the end of the guarantee period, SILAC offers a 30-day penalty-free exit window; if you do not exit, the contract renews into a new guarantee period at whatever rate SILAC sets at that time. The renewal rate is not guaranteed in advance.

The free-withdrawal provision is worth noting: in year one you can take out only accumulated interest. Starting in year two, you can take the greater of 5% of account value or total accumulated interest. That gives you modest access to principal without triggering surrender charges — but anything above that amount is subject to charges and potentially MVA.

The most relevant secondary feature is the MVA — Market Value Adjustment. An MVA means your effective surrender penalty can be higher or lower than the stated charge depending on the interest rate environment at the time of withdrawal. In a rising-rate environment, the MVA typically increases the cost of an early exit; in a falling-rate environment, it may reduce it. For a two-year product with 9% and 8% surrender charges already baked in, the MVA adds meaningful uncertainty to the cost of exiting before the guarantee period ends. Buyers who are confident they will not need the money before year two can largely ignore this risk, but anyone with any doubt about their liquidity needs should take it seriously.

Two years is a short commitment, but the surrender charges are aggressive for the duration. At 9% in year one and 8% in year two, these are charges you would more typically see on a 7-year or 10-year product. Combined with the MVA, early exits can be genuinely costly. Free withdrawals partially offset this — interest only in year one, then the greater of 5% of account value or interest in year two — but principal access is largely locked until the guarantee period ends.

The 30-day penalty-free window at the end of the guarantee period is the cleanest exit point. RMDs attributable to the contract appear to be accommodated without surrender charges, though buyers should confirm specific RMD provisions with their agent.

There are no stated base contract fees, no rider fees, and no administrative charges disclosed in the available materials. This is a simple fee structure — the cost is entirely embedded in the spread between what SILAC earns on its investment portfolio and what it credits to the contract.

The real tradeoffs are not about explicit fees. They are about carrier quality and rate competitiveness. A.M. Best B is below what most financial planning guidelines consider investment-grade for an annuity carrier. The 2.60% rate, as of the brochure date, is materially below what stronger-rated carriers offer on comparable two-year commitments. And the surrender charges, high for a short product, mean that early liquidity needs are expensive.

Legal Entity: SILAC Insurance Company

A.M. Best Rating: B

SILAC Insurance Company is a smaller regional carrier. Its A.M. Best B rating is a material consideration. A.M. Best's B grade falls below what many independent financial advisors consider a minimum threshold for annuity recommendations. Buyers should review SILAC's current financial statements and state guarantee fund coverage limits before committing.