Secure Savings 3-Year review

It depends. The product structure is acceptable — a 3-year MYGA with reasonable free-withdrawal terms and a clean death benefit is a legitimate option for short-term principal protection. But the A.M. Best B carrier rating introduces a level of credit risk that makes this harder to endorse unconditionally. If the rate being offered is meaningfully higher than what A-rated or better carriers offer for the same term, there may be a rational argument for accepting the tradeoff. If the rates are roughly comparable, there is little reason to accept the additional carrier risk.

The rational case for this product is short-term rate certainty from a carrier with a lower entry premium. The $10,000 minimum is accessible compared to many competing MYGAs. The 3-year term limits the duration of carrier exposure. And for a buyer who already holds other, better-rated annuity or insurance products and wants a small, short-term allocation, the carrier concern is proportionally smaller. Someone who is also already familiar with SILAC from a prior policy may view the relationship as established and acceptable.

I think Secure Savings 3-Year is best suited for buyers who are doing a specific short-term job with a modest allocation — parking a rollover or CD maturing proceeds for three years while deciding on a longer-term strategy. The $10,000 minimum and three-year term make this accessible to buyers who do not want to commit a large sum. It is a harder sell as a primary or large-allocation annuity, given the carrier rating. It is not appropriate for buyers whose primary concern is carrier stability, who are allocating retirement savings they cannot afford to be at risk, or who want or need income features.

You are buying a three-year interest-rate guarantee from a Fair-rated insurance carrier. The mechanics are simple: you pay a premium, SILAC credits a fixed rate for three years, and at the end of the term you can surrender or renew. In exchange, your money is held by the carrier during that period and is subject to the carrier's general account. That is how all fixed annuities work — and it is why carrier ratings matter. No index exposure, no market risk, no upside beyond the stated rate. The product does what it says; the question is whether the carrier stability backstop is adequate for your situation.

The core feature is a single guaranteed interest rate credited for the full three-year surrender period. The rate disclosed in the available brochure materials was 3.15%, though rates on MYGAs change regularly and the current rate offered at application may differ. There are no caps, no participation rates, and no index strategies to manage. Interest is credited on a fixed basis. At the end of the three-year term, the contract owner can withdraw the full accumulated value without surrender charges, renew at a new rate, or exchange the contract.

The most relevant secondary consideration is the free-withdrawal provision. In year one, withdrawals are limited to credited interest only — principal cannot be accessed without incurring surrender charges. Starting in year two, the free amount rises to the greater of 5% of account value or the credited interest. For a short-term MYGA holder with modest income needs or RMD obligations, this structure provides a workable liquidity path. RMD distributions are also allowed without surrender penalty in qualified contracts, which is a meaningful benefit for IRA holders who need ongoing distributions.

This is a 3-year commitment. Surrender charges run 9% in year one, 8% in year two, and 7% in year three — higher than the penalty schedules on many 3-year MYGAs. A Market Value Adjustment — MVA — also applies to surrenders, which means the actual penalty can be larger or smaller than the stated charge depending on prevailing interest rates at the time of surrender. If interest rates have risen since issue, the MVA increases the effective penalty. If rates have fallen, it can reduce it.

The year-one interest-only free-withdrawal limit is worth noting. Buyers who expect to need more than the credited interest in the first year should treat this as a fully illiquid contract for that period. Starting in year two, the 5%-or-interest provision offers meaningful access. RMD distributions in qualified contracts are waived from the surrender charge, which is standard for a MYGA but worth confirming at application.

There are no disclosed base contract fees or explicit rider fees on this product. The main cost is the implicit cost of locking at the stated rate — which may prove competitive or uncompetitive depending on rate movements during the term.

The Minimum Guaranteed Surrender Value (MGSV) was reported as 1.00% of premiums in the available brochure materials, though this field was noted as lower confidence in extraction. Buyers should confirm the exact MGSV with SILAC directly before application, as this represents the floor of what you are guaranteed to receive on surrender.

The structural tradeoffs are the surrender charges, the MVA risk, and above all the carrier rating. A.M. Best's B grade means the company's financial strength is assessed as "Fair" rather than "Good" (B+) or better. This is a factual credit-quality difference that is worth discussing with an advisor before committing, particularly for larger allocations.

Legal Entity: SILAC Insurance Company

A.M. Best Rating: B

SILAC Insurance Company is a smaller, independent carrier. Its A.M. Best B rating places it in the "Fair" financial strength tier — solvent and operating, but below the investment-grade floor that most financial advisors use as a carrier screening threshold. Buyers considering any SILAC product should weigh carrier stability explicitly as part of their decision, not as a footnote.