Why it earned this rating
Our assessment
Western & Southern MultiRate 2-Year is a clean, fee-free fixed annuity from a carrier with a strong A+ A.M. Best rating, but the structure requires careful reading. The 2-year guaranteed rate is the entry point, not the full commitment — the contract runs 7 years with declining surrender charges. That gap between headline period and contract length is the main reason this product earns a solid rather than strong rating.
The short version
This is a multi-period fixed annuity designed for conservative savers who want a guaranteed interest rate and are comfortable locking money up for up to 7 years. The contract offers multiple guarantee period options (1, 2, 3, 4, 5, and 7 years) — the "2-year" in the product name refers to the first elected guarantee period, not the surrender schedule. A 2.00% first-year interest rate enhancement adds a one-time boost in year one. What you are not getting here is equity-linked upside, an income rider, or any kind of market participation. This is a straightforward guaranteed-rate vehicle.
Key facts
The full review
Is Western & Southern MultiRate 2-Year a Good Annuity?
It depends on what you need it to do. If you want a guaranteed fixed rate from a strong-rated carrier, plan to use the free withdrawal provision for modest access, and are comfortable with a 7-year contract, this is a reasonable option. If you are focused on a short 2-year commitment to match the rate period, be aware that you are signing a 7-year contract — that is the part of this product that catches buyers by surprise.
Why Someone Would Buy This Annuity
The straightforward case for this product is capital preservation with guaranteed growth. There is no market exposure, no rider complexity, and no annual fee. Western & Southern carries an A+ A.M. Best rating, which matters for a product that is essentially a long-duration insurance company promise to pay a specific rate. The 2.00% first-year interest rate enhancement provides a modest additional return in year one. Buyers also have flexibility at each guarantee period renewal to select a new rate window that fits their timeline — that optionality is genuinely useful if your planning horizon might shift.
Who This Annuity Is Best For
I think this product is best suited to conservative accumulators who want certainty — retirees or near-retirees parking non-qualified or IRA money they will not need for at least 7 years, or anyone who wants the discipline of a locked rate without the complexity of an indexed product. The low minimum premium of $5,000 also makes it accessible for smaller account sizes. It is less appealing for anyone who might need more than 10% access annually, wants income rider protection, or is primarily shopping for growth potential.
What You're Really Buying Here
You are buying a contractual promise from Western-Southern Life Assurance Company to pay a specified interest rate for the guarantee period you select, with the option to elect a new rate at each renewal. The contract does not participate in any index or market. Interest accrues at a fixed rate and compounds inside the annuity, with tax deferral if held in a non-qualified account. The main variable over time is what renewal rates Western & Southern will offer — those are not locked in now and will be set at each renewal window.
How the Core Feature Works
At issue, you select a guarantee period — 1, 2, 3, 4, 5, or 7 years — and the carrier locks in an interest rate for that period. The rate for the 2-year period as of April 2026 was 3.90%, plus a 2.00% first-year enhancement that applies only in year one. That means year-one effective interest is higher, but the enhancement does not carry forward — the base rate applies for the remainder of the guarantee period after year one.
At the end of each guarantee period, you elect a new period from the current menu. The contract requires a minimum of $1,000 in each guarantee period. Surrender charges apply to withdrawals above the free-withdrawal amount during the 7-year contract window, regardless of which guarantee period you are in. The surrender structure is separate from and longer than the 2-year initial rate guarantee.
Why the Secondary Feature Matters
The most useful secondary feature is the chronic illness and terminal illness waiver coverage. Western & Southern includes an Additional Waiver of Surrender Charges Rider that allows penalty-free access if you are confined to a long-term care facility or hospital for at least 30 days, or if you receive a terminal illness diagnosis with life expectancy of 12 months or less. For a 7-year surrender product, that protection is meaningful — it addresses one of the most common objections to locking up retirement savings for an extended period. Note that the long-term care waiver is not available in Massachusetts, and the terminal illness waiver is not available in Massachusetts or New Jersey.
Liquidity and Surrender Schedule
Free withdrawals of up to 10% of contract value per year are available starting immediately — that is more accessible than many fixed annuities, which begin the free-withdrawal window only after the first year. The minimum withdrawal is $250. Surrender charges on amounts above the free allowance follow a declining schedule over 7 years.
| Contract Year | Surrender Charge |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 4% |
| 7 | 3% |
| 8 | 0% |
There is no market value adjustment (MVA), which is worth noting — your surrender penalty is fixed and does not float with interest rates. Surrender charges are also waived on: death, annuitization with at least 5 years of level payments (if at least 2 years after issue), qualified long-term care or hospital confinement, and terminal illness. RMDs are handled appropriately for qualified accounts, and systematic withdrawals of 10% annually or interest-only payments are available without triggering surrender charges.
Fees and Tradeoffs
There is no base contract fee and no rider fee — the contract is clean in that respect. The cost of this product is opportunity cost: you are trading flexibility for a guaranteed rate. If market rates rise significantly during your guarantee period, you are locked until renewal. If you need liquidity above 10% before the 7-year window closes, you face surrender charges.
The first-year interest rate enhancement is real but modest — it is a rate bonus on interest, not an account-value premium bonus, so the underlying principal is not increased at issue. Buyers who focus only on the headline year-one rate should understand that the blended return over the full guarantee period will be lower once year two and beyond reverts to the base rate without the enhancement.
Product snapshot
| Feature | Details |
|---|---|
| Product Type | Fixed Annuity |
| Surrender Period | 7 years |
| Issue Ages | 0-89 (0-85 in Oklahoma) |
| Minimum Premium | $5,000 |
| Crediting Methods | Fixed interest rate with guarantee periods of 1, 2, 3, 4, 5, and 7 years |
| Free Withdrawal | 10% of contract value per contract year (noncumulative; $250 minimum), beginning immediately; systematic withdrawals of 10% of contract value or interest earnings also available annually without surrender charge |
| MGSV | 100% of premiums paid adjusted for distributions, guaranteed minimum interest rate of 1-3% as defined in contract |
| Death Benefit | Full contract value on the day the death claim is processed; no surrender charge applies; paid directly to beneficiary bypassing probate when properly structured |
| Income Rider | Not available |
| Premium Bonus | None |
| Availability | Not available in AK, ME, NH, NY, RI. Variations approved in CT, HI, MA, NJ, OR, PA, WA. Operates in DC, Guam and all states except NY. |
Carrier snapshot
Legal Entity: Western-Southern Life Assurance Company
Parent: Western & Southern Financial Group
A.M. Best Rating: A+
Western & Southern Financial Group is a Cincinnati-based mutual holding company with a long operating history. The A+ A.M. Best rating reflects strong financial strength and a conservative balance sheet. For a guaranteed-rate product like this one, carrier financial strength is directly relevant to the value of the promise.
Final take
MultiRate 2-Year is a sensible fixed annuity for buyers who want a straightforward guaranteed-rate contract backed by a highly rated carrier, can commit to a 7-year surrender window, and value flexibility to renew at different guarantee periods over time. The no-fee structure, immediate free-withdrawal access, and built-in waiver provisions make it a cleaner product than many competitors.
The main reason to hesitate is the mismatch between the 2-year headline rate period and the 7-year contract. Buyers focused on short-term rate shopping may not realize they are signing a significantly longer commitment. If that mismatch fits your actual planning horizon, this is a solid option. If you want the contract length and the rate period to match — and do not want to think about renewal elections — you would be better served by the 7-year guarantee period option in the same product family, or a comparable MYGA from a competing carrier.