MultiRate 5-Year review

Yes, with an important caveat. This is a solid accumulation annuity for someone who wants principal safety, a competitive locked rate, and no complexity — and who understands they are actually signing up for a 7-year surrender commitment, not 5. If your planning horizon is genuinely 7 years and you want the discipline of a locked rate with a top-rated carrier, this does the job. If you are expecting a 5-year product in the way most MYGAs work, read the surrender schedule carefully before signing.

The rational case for MultiRate 5-Year comes down to three things: carrier strength, simplicity, and flexibility on the margin. Western & Southern Life Assurance Company holds an A+ A.M. Best rating, which is the second-highest possible grade — that matters when you are locking in a 7-year commitment. The contract has no index exposure, no rider fees, and no MVA risk, which means the value you see on paper is the value you get. The $2,000 minimum also makes it accessible for buyers who do not have a large lump sum ready to deploy.

I think MultiRate 5-Year is best for a conservative saver — likely pre-retirement or in early retirement — who has already decided they want a guaranteed-rate product, values the name recognition and financial strength of a large mutual insurance group, and is comfortable deferring to a 7-year window. It fits best in a non-qualified account or a traditional IRA where the RMD-friendly structure matters. It is less appealing for someone who needs flexibility above the 10% free-withdrawal amount, expects to re-shop rates in 5 years, or prioritizes income generation over accumulation.

You are buying a contractual promise that Western-Southern Life Assurance Company will credit a fixed interest rate for the duration of your guarantee period, and that if you leave the money alone (or stay within the 10% annual free-withdrawal), the rate you were quoted is the rate you will get. There is no index crediting, no policy investment account, and no fee drag on the base contract. The tradeoff is that you are also buying a 7-year exit window — not a 5-year one. The product name emphasizes the guarantee period, but the surrender schedule is what actually constrains your access to the principal.

MultiRate 5-Year credits a fixed interest rate that is guaranteed for the selected guarantee period. Based on the brochure, the current base rate for the 5-year period is 3.80%, with a first-year interest rate enhancement of 2.00% that brings the effective year-one rate to 5.80%. That enhancement applies only to year one — after year one, the remaining four years of the guarantee period credit at the underlying base rate. The distinction between an "interest rate enhancement" and a premium bonus matters here: the enhancement boosts interest credited on the account value, but it is not added to the account value upfront and does not compound the way a true premium bonus would.

The product also allows multiple guarantee periods within the same contract — buyers can hold allocations in 1-year, 2-year, 3-year, 4-year, 5-year, or 7-year guarantee periods simultaneously, subject to a $1,000 minimum per period. That flexibility is genuinely useful for a laddering strategy. The guaranteed minimum interest rate varies by contract between 1% and 3%, which sets a floor on the worst-case crediting scenario.

The most meaningful secondary feature is the waiver structure. Western & Southern includes surrender charge waivers for confinement in a long-term care facility or hospital for 30 or more consecutive days (through the Additional Waiver of Surrender Charges Rider, not available in Massachusetts), terminal illness with a life expectancy of 12 months or less (not available in Massachusetts or New Jersey), and death of the owner. These provisions matter because a 7-year surrender period is a long time, and life circumstances change. The long-term care waiver in particular reduces the practical risk of being locked in during a health event — which is a real concern for buyers in their 60s and 70s.

The surrender schedule runs 7 years — 7%, 7%, 7%, 6%, 5%, 4%, 3%, then 0% — and the name "MultiRate 5-Year" refers only to the guarantee period, not the surrender duration. That mismatch deserves emphasis. A buyer who assumes this is a 5-year lockup will be surprised to find surrender charges still apply in years 6 and 7.

The 10% free-withdrawal provision is available from the first contract year, which is better than the "after year one" restriction common in many competitors. Systematic withdrawals of 10% of contract value or interest earnings are also available without surrender charge. There is no market value adjustment on this product, which simplifies the math considerably — your surrender penalty is just the percentage in the schedule, not a rate-adjustment layer on top.

Required minimum distributions are treated as RMD-friendly per the spec, which means qualified account holders should generally be able to satisfy RMDs without triggering surrender charges. Systematic withdrawals are not available for Roth IRA contracts.

The base contract carries no fees — no annual contract charge, no asset-based charge, no management fee. That is standard for a straightforward fixed annuity, and it means the rate you are quoted is the net rate you receive. There is also no MVA, which removes an often-overlooked layer of surrender cost.

The honest tradeoff list: the first-year enhancement inflates the apparent initial yield in a way that does not persist; the named guarantee period (5 years) is shorter than the actual surrender commitment (7 years); the product is not available in Alaska, Maine, New Hampshire, New York, or Rhode Island; and the current rate as of the brochure (3.80% base) reflects the rate environment at time of issue, which can change for new purchasers. Rates as quoted in the brochure are as of April 1, 2026.

Legal Entity: Western-Southern Life Assurance Company

Parent: Western & Southern Financial Group

A.M. Best Rating: A+