MultiRate 1-Year review

It depends on what you need. If you want annual rate flexibility inside a fixed-annuity shell, and you are comfortable with a seven-year surrender commitment, this can be a solid choice from a well-capitalized carrier. If what you want is a guaranteed fixed yield for the entire surrender term, look at a true MYGA instead — this product's one-year guarantee period means the rate you earn after the first year is not predetermined.

The main reasons to choose MultiRate 1-Year are the carrier's A+ credit quality, the ability to allocate premium across multiple guarantee windows inside one contract, and a first-year rate enhancement that gives an immediate yield lift. The product also features no base contract fee and a built-in Return of Premium guarantee, which lowers the downside floor. Buyers who expect rates to remain elevated — or who want the ability to capture higher rates at each annual renewal — may prefer this over locking into a multi-year guarantee today.

I think MultiRate 1-Year is best for pre-retirees and early retirees who want a conservative fixed annuity from a top-rated carrier, have a genuine seven-year time horizon, and prefer annual rate resets rather than committing to a single locked yield. It also suits buyers who want to ladder within one contract — placing portions of their premium into different guarantee periods ranging from one to seven years. It is not a strong fit for someone who wants a single, predictable yield for the full surrender term, or someone who might need access to more than 10% per year before the contract matures.

You are buying a fixed deferred annuity with an unusually flexible crediting structure. The premium splitting feature — which allows a minimum of $1,000 per period across guarantee windows of one through seven years — makes this closer to an internal laddering tool than a standard single-rate MYGA. The one-year period in this version means your contract earns a declared fixed rate each year, with a renewal rate set by the carrier at the start of each new guarantee period. The first-year enhancement of 2.00% boosts your initial return, but that enhancement does not carry forward. After year one, you receive the carrier's current declared rate minus the enhancement that was layered on top.

Each guarantee period inside MultiRate earns a fixed declared rate for its duration. For the one-year option, the carrier sets a rate at issue for the first year. At the end of that year, a new rate is declared for the next one-year period. The first-year-only enhancement is exactly that — a 2.00% addition to the base rate in year one only. After year one, the renewal rate reflects the carrier's current crediting environment.

Current declared rates are not locked into the brochure and will vary over time. The brochure notes a current rate of 6.00% as of April 1, 2026, which reflects the first-year enhanced figure. The minimum guaranteed rate is 1-3% depending on the contract, which is the regulatory floor rather than a competitive target. Premium can be divided across guarantee periods of one through seven years, with at least $1,000 allocated to each period used.

The Return of Premium guarantee, available at no charge on this contract, provides meaningful downside protection. Under the ROP provision, your contract value will not fall below premiums paid (adjusted for distributions) at any point during the surrender period — even if credited interest is low. That is different from the minimum guaranteed interest rate, which only kicks in as a floor over time. The ROP is a hard floor, and it makes this product appropriate for conservative buyers who cannot afford to lose principal even temporarily. Combined with no contract fees, it creates a clean structure where the worst-case outcome is getting your money back without gain.

The seven-year surrender period is a real commitment, but the terms are not unusually restrictive for its duration band. Free withdrawals of 10% of contract value are available immediately in the first contract year — not deferred to year two as some contracts require. Systematic withdrawals of 10% of contract value or interest earnings are also available annually without charge, which is useful for retirees who want regular income from the contract without triggering surrender charges.

There is no market value adjustment on this product, which simplifies the math and removes one source of uncertainty for buyers who expect rates to move.

Surrender charge waivers are available for: confinement in a long-term care facility or hospital for at least 30 days, terminal illness with a life expectancy of no more than 12 months, annuitization with level payments for at least five years beginning at least two years after contract issue, and death of owner. The chronic illness waiver is not available in Massachusetts; the terminal illness waiver is not available in Massachusetts or New Jersey. RMDs attributable to this contract are also available, though they count against the annual free-withdrawal amount.

There are no base contract fees on MultiRate 1-Year, and no income rider is available (or charged). That clean fee structure is a genuine plus for buyers who want yield without overhead.

The real cost is structural rather than explicit. The one-year guarantee period means you bear renewal rate risk every year for seven years. If interest rates decline materially during the contract, your renewal rates will follow. That is the trade you make for flexibility. Buyers who want certainty should look at MultiRate's 5-year or 7-year guarantee-period options instead — those lock in a rate for the full period.

Legal Entity: Western-Southern Life Assurance Company

Parent: Western & Southern Financial Group

A.M. Best Rating: A+