Why it earned this rating
Our assessment
Acclaim 5-Year offers a straightforward locked-rate structure from a carrier with an A+ A.M. Best rating and a low $2,000 entry point that opens it to depositors who would be shut out of most competing MYGAs. The interest-only free-withdrawal provision is notably more restrictive than the 10%-of-account-value standard common in the MYGA market, which matters for anyone who might need periodic access to principal, and the bank-only distribution channel limits where the product can be shopped. Those two structural constraints hold it just below a top-tier rating despite a competitive locked rate and a solid carrier behind it.
The short version
This is a five-year locked-rate fixed annuity designed for savers who want a CD-like commitment with the tax-deferral and creditor-protection advantages that come with an insurance contract. The guaranteed rate is fixed for the full five-year term, the carrier is financially strong, and the entry minimum is unusually low at $2,000. The main thing to understand going in is that free-withdrawal access is more limited here than on most open-market MYGAs — you can take the interest your contract has earned since the last anniversary, but you cannot touch principal without a surrender charge in years one through five.
Key facts
The full review
Is Western & Southern Acclaim 5-Year a Good Annuity?
It depends on what you need from it. If you want a five-year rate lock from a strong carrier with a very low minimum premium and you don't expect to need access to principal, this is a good product. If you're used to MYGA contracts that allow 10% annual free withdrawals of account value, this one will feel more restrictive — and that difference matters if your financial situation changes during the surrender period.
Why Someone Would Buy This Annuity
The three most practical reasons to buy Acclaim 5-Year are the carrier's financial strength, the low entry minimum, and the clean locked-rate structure. Western-Southern Life Assurance Company holds an A+ rating from A.M. Best, which puts it among the stronger-rated issuers in the MYGA market. The $2,000 minimum makes the product accessible to depositors who are rolling over smaller CDs or who want to start with a modest commitment. And because the rate is fixed for the full five years, there's no annual crediting uncertainty — you know exactly what you'll earn.
Who This Annuity Is Best For
I think Acclaim 5-Year is best for savers who already have a relationship with a bank that distributes it, want a straightforward guaranteed rate for five years, and can genuinely leave the principal alone for that period. It is less appealing for someone who needs the flexibility to take annual principal withdrawals, is shopping the open market for the highest available five-year MYGA rate, or wants a product with a standard 10%-of-account-value free-withdrawal provision. The wide issue-age range (0-89) and low minimum also make this a reasonable fit for smaller accounts that would be below the threshold for most competing products.
What You're Really Buying Here
You are buying a fixed-rate insurance contract — not a bank CD, and not an indexed or variable product. The credited rate is guaranteed for the full five-year term regardless of what interest rates do after you buy it. That means you win if rates fall, and you miss out if rates rise significantly. The contract grows tax-deferred, passes to beneficiaries without going through probate, and carries the nursing home waiver and terminal illness provisions described below. Those features go beyond what a CD provides, but they come with a surrender schedule that a CD doesn't impose.
How the Core Feature Works
Acclaim 5-Year credits a single fixed interest rate to the full account value for the entire five-year guarantee period. The rate as of April 2026 was 4.30% annually. The contract also has a guaranteed minimum interest rate of 1% to 3% for the life of the contract (the exact floor varies by state), which means even if rates were to be reset dramatically lower at a future renewal, the crediting rate cannot fall below that floor.
Multiple guarantee periods are available (one through five years) at a minimum of $1,000 per guarantee period, which means you can ladder different durations inside a single contract rather than committing the entire balance to one maturity. Western & Southern does not rate-band by premium size, so the same rate applies whether you deposit $2,000 or $200,000.
Why the Secondary Feature Matters
The most meaningful secondary features here are the hardship waivers. The nursing home and long-term care waiver removes surrender charges if you're confined for 30 or more consecutive days after the second contract year. A terminal illness waiver applies if life expectancy is 12 months or less (described as a qualifying "condition" in Pennsylvania). Those provisions are especially relevant for conservative savers buying fixed annuities in or near retirement, where unexpected health events are a real planning risk. Neither feature helps if you simply change your mind about the annuity, but they provide a genuine safety valve for the circumstances most likely to create urgent liquidity needs.
Liquidity and Surrender Schedule
The free-withdrawal provision on this contract is more limited than the standard most MYGA shoppers expect. Most multi-year guaranteed annuities allow penalty-free withdrawals of up to 10% of account value each year after the first year. Acclaim 5-Year instead allows withdrawals of the interest credited since the last contract anniversary (effectively your running interest balance), less any prior partial withdrawals, with a $250 minimum. Withdrawals are not available in the first contract year at all.
That distinction matters in a practical way. In a standard 10%-AV MYGA, a $100,000 depositor could access $10,000 per year without a surrender charge. Here, that same depositor can only access the accumulated interest — in year one, nothing; in year two, roughly one year of credited interest. If you need any access to principal before year six, you're looking at the surrender schedule below.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
The schedule starts at 7% for the first three years and doesn't step down meaningfully until year four. That's a fairly stiff schedule for a five-year product — some competing five-year MYGAs start lower or step down faster. The contract does not appear to include a market value adjustment based on the brochure materials, though this was listed as low-confidence in the source documents; confirm this directly with the carrier if MVA risk is a concern for you.
IRS required minimum distributions (RMDs) and 72(t) distributions are not subject to surrender charges, beginning in contract year two. The nursing home, terminal illness, annuitization, and death waivers are all documented above.
Fees and Tradeoffs
The base contract carries no annual fee, no spread, and no cap — just the locked credited rate and the surrender schedule described above. The optional Return of Premium rider, if elected at issue, reduces the credited rate by 0.05% for five years. That's a minimal cost for a provision that guarantees you can get your original premium back even if account value has been reduced by early surrender. Most buyers in a straightforward MYGA won't need this rider, but it may be worth considering if you're nervous about locking principal in.
The main tradeoffs are structural rather than fee-related. The locked rate works against you if market rates rise sharply after you buy — you're committed for five years at today's rate. The interest-only free-withdrawal provision limits liquidity. And bank-channel distribution means you can't comparison-shop this product at an independent annuity marketplace; you'll find it through the bank relationship and not alongside every competing MYGA in the market.
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 (effective issue date), less any prior partial withdrawals; noncumulative; $250 minimum. Systematic withdrawals of free amount available annually (monthly/quarterly/semiannual/annual; $100 minimum, $50 via EFT). Not available first year. |
| MGSV | 1%-3% guaranteed annual return for life of contract (varies by state and contract terms) |
| Death Benefit | Full account value paid to designated beneficiary at death of owner; no withdrawal charge applies; avoids probate |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not approved in AK, CA, ME, NH, NY, OR, RI. Variations approved in CT, PA. Sold through bank channel. |
Carrier snapshot
Legal Entity: Western-Southern Life Assurance Company
Parent: Western & Southern Financial Group
A.M. Best Rating: A+
Final take
Acclaim 5-Year is a clean, no-frills fixed annuity from a financially strong carrier. The locked rate, the broad issue-age range, and the low entry minimum make it accessible and straightforward. The nursing home and terminal illness waivers are a genuine plus for buyers near or in retirement.
The product is not the right choice for someone who needs the liquidity flexibility of a standard 10%-of-AV MYGA free withdrawal, who is actively comparison-shopping the open market, or who expects to need principal access before the five-year period ends. But for a depositor who already has a bank relationship that carries it, wants a predictable locked return, and can commit the money for five years without needing to touch principal, this is a solid choice that does exactly what it says it will.