Why it earned this rating
Our assessment
The Acclaim 2-Year with ROP earns a solid rating because it does one thing cleanly: it gives conservative savers a guaranteed fixed rate for two years with the option to walk away with at least their premium intact. The downside is the mismatch between a 2-year rate guarantee and a 5-year surrender schedule — after year two, your renewal rate is unknown and you still have three years of surrender exposure. That structural gap is the main reason this sits one tier below a strong option.
The short version
This is a short-term fixed annuity with a principal protection backstop. You lock in a guaranteed rate for two years, and the Return of Premium rider means that if something changes and you need out before the five-year surrender period ends, you can surrender the contract and get back at least what you put in. That is a meaningful safeguard for buyers who are not sure they will hold a full surrender period. The tradeoff is that the ROP rider costs 0.05% per year off your credited rate for all five years, and once the initial 2-year rate guarantee expires, your renewal terms are uncertain.
Key facts
The full review
Is Western & Southern Acclaim 2-Year with ROP a Good Annuity?
It depends on what you need it for. For someone who wants a short rate lock with the option to leave without losing principal, this product is a reasonable fit. For someone who wants maximum credited interest and is confident they will hold a full surrender period, a version without the ROP rider will likely produce a higher effective return. The ROP feature has real value — but only if you actually need the exit option.
Why Someone Would Buy This Annuity
The core reason to choose this annuity over a plain short-term MYGA is the ROP rider. If there is any chance you might need to access the full principal before the surrender period ends, the ROP provides a floor. Western & Southern also carries an A+ rating from A.M. Best, which matters to risk-sensitive buyers who prioritize carrier quality. The $2,000 minimum is very accessible, making this viable for smaller accounts or tax-advantaged rollovers where most other MYGAs have higher entry requirements.
Who This Annuity Is Best For
I think this annuity fits best for buyers in their late fifties to mid-seventies with a conservative risk profile who want a short rate guarantee period and are willing to pay a small rate concession for the comfort of knowing their principal is recoverable. It is particularly practical for qualified money where the buyer is uncertain about when they will need to begin distributions, or for non-qualified savers who want a safe holding place for funds they might redirect after two years. It is less attractive for someone who wants the highest possible yield or who is confident they will never surrender early.
What You're Really Buying Here
You are buying a fixed annuity with two separate layers of commitment: the 2-year rate guarantee, and the 5-year surrender schedule. The credited rate is fixed for two years — that part is locked. After the 2-year guarantee expires, Western & Southern sets a renewal rate that must meet the minimum guaranteed rate floor (1% to 3% for the life of the contract) but is otherwise at their discretion. The ROP rider means that if you surrender at any point during the 5-year period, you receive back at least the premium you paid in. You are not guaranteed the credited interest in an early exit, but you are guaranteed your principal. That is the actual insurance product underneath the marketing language.
How the Core Feature Works
The credited interest rate is fixed for two years from contract issue. As of September 1, 2025, that rate was 4.45% — but rates change, and any contract you buy today will reflect current market terms. The rate is applied to your account value annually. There are no index strategies, caps, or participation rates to track. After the initial 2-year period ends, Western & Southern will notify you of the renewal rate. If the renewal rate falls below your minimum guaranteed rate floor, the floor applies. Western & Southern offers rate guarantee periods of one through five years on the Acclaim platform, and rate tiers may differ across those durations.
The ROP rider reduces your credited rate by 0.05% across all five contract years. That cost is ongoing regardless of whether you ever actually surrender the contract, so buyers who hold to maturity pay the premium concession without ever using the protection it provides.
Why the Secondary Feature Matters
The nursing home and long-term care confinement waiver is the secondary feature worth noting. If you are confined to a qualifying nursing or long-term care facility, the surrender charge may be waived, giving you access to your account value without penalty. This matters for older buyers or anyone with health considerations who wants liquidity protection in an adverse scenario. The waiver is available at no additional cost and does not require a separate rider election. State-specific variations apply — the terminal illness waiver uses "condition" language in Pennsylvania and is not available in all states.
Liquidity and Surrender Schedule
The free-withdrawal provision allows you to take out interest credited since the last contract anniversary once per year, beginning in contract year two. There is a $250 minimum per withdrawal. This provision is noncumulative, so unused free-withdrawal capacity does not carry forward.
Beginning in contract year two, required minimum distributions and scheduled 72(t) distributions are exempt from the surrender charge. Systematic withdrawals are available monthly, quarterly, semiannually, or annually with a $100 minimum (or $50 via EFT). The contract can be annuitized after two or more years with a life-contingent or 10-plus-year guaranteed payment option, and annuitization waives the surrender charge. This annuity is not available for Roth IRA accounts.
The surrender schedule runs 7%, 7%, 7%, 6%, 5% across the five contract years. There is no market value adjustment — what you see in the schedule is what applies. The ROP rider ensures that even in a full surrender, you receive at least your original premium back.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
Fees and Tradeoffs
There are no explicit rider fees on this contract. The ROP rider operates as a rate reduction of 0.05% per year across all five contract years rather than a separately deducted charge. On a $50,000 premium, 0.05% per year is $25 annually — a minor but real cost. The base contract carries no annual fee.
The main structural tradeoff is the rate guarantee horizon. You are locking into a 5-year surrender contract to access what is effectively a 2-year guaranteed rate. After the 2-year mark, you are exposed to whatever renewal rate Western & Southern offers, subject to the guaranteed minimum floor. That asymmetry — a longer surrender window than rate guarantee — is a real limitation. Buyers who want a clean 5-year locked rate should look at the Acclaim 5-year version instead.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 5 years |
| Issue Ages | 0-89 |
| Minimum Premium | $2,000 |
| Crediting Methods | Fixed interest rate |
| Free Withdrawal | Interest credited since last contract anniversary (noncumulative; $250 minimum); available after year one |
| MGSV | Varies; 1-3% guaranteed annual return for life of contract |
| Death Benefit | Full account value at time of distribution; no withdrawal charge; paid to designated beneficiary avoiding probate |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Variations approved in CT, PA. Not approved in AK, CA, ME, NH, NY, OR, RI. Terminal illness waiver uses 'condition' language in PA. |
Carrier snapshot
Legal Entity: Western-Southern Life Assurance Company
Parent: Western & Southern Financial Group
A.M. Best Rating: A+
Final take
The Acclaim 2-Year with ROP is a sensible option for conservative buyers who want a short rate lock and are willing to accept a modest yield reduction for the protection of knowing their principal is recoverable. The A+ rated carrier, the low entry requirement, and the ROP backstop are real strengths.
The clear limitation is the structure mismatch: a 2-year rate guarantee inside a 5-year surrender contract. Anyone who holds past the initial rate guarantee period is taking on renewal rate risk without a clear exit. For buyers who want a locked rate that lasts the full surrender period, a longer-duration Acclaim variant is the more coherent choice. For buyers who genuinely value the ROP safety net and are comfortable with post-guarantee renewal uncertainty, this product does what it says.