SmartSelect 6-Year review

Yes, for the right buyer. If you want a six-year guaranteed rate from a financially strong carrier and you understand the MVA risk on early withdrawals beyond the free amount, this does what it promises. It is less appealing for anyone who needs frequent access to principal above 10% annually, dislikes MVA exposure, or is comparing it against longer-term MYGAs where rates tend to be higher.

The main reason to buy SmartSelect 6-Year is simple: a guaranteed rate locked for six years at a carrier with an A.M. Best A+ rating, sold in the bank channel where many buyers are already comfortable with CD-like products. The secondary reason is the immediate free-withdrawal provision — unlike some MYGAs that withhold access in year one, this one lets you pull up to 10% immediately. That adds meaningful flexibility without changing the core locked-rate promise.

I think SmartSelect 6-Year is best for a conservative saver in their 50s to 70s who has reached a CD or money-market account for safety, wants tax-deferred treatment, and has at least $20,000 they can genuinely commit for six years. The broad issue-age range (0–85) makes it usable for a variety of situations, including trust-held assets. It is less attractive for someone in a high-liquidity situation, someone comparing MYGAs at rates well above this product, or someone using an IRA where the tax-deferral advantage narrows.

You are buying a contractual promise that Western-Southern Life Assurance Company will credit a fixed guaranteed rate for exactly six years, then hand back your full account value with no surrender charge and no MVA at maturity. Between now and then, you can withdraw up to 10% per year without penalty, and certain life events — nursing-home confinement, terminal illness, required minimum distributions — trigger full waiver of charges. Everything else — any additional surrender — is subject to the schedule below and an MVA that adjusts the effective penalty based on where interest rates have moved. The product does not invest in stocks, does not track an index, and does not pay an income stream unless you choose to annuitize at the end.

The Guaranteed Rate Option (GRO) is the only crediting mechanism here. You select a term — 3, 4, 5, 6, or 7 years — and the carrier locks in a rate for that full period. The 6-year GRO is the focus of this review. Rate banding splits into two tiers: a lower band for premiums below $100,000 and a higher band for $100,000 and above. As of the brochure date, those rates were 3.80% and 4.05% respectively, guaranteed for the full six years with no annual reset or renewal risk during the term.

At the end of the GRO period, you choose: select a new GRO period, or let the contract roll into a 1-year renewal period that carries no withdrawal charge and no MVA. That renewal default is an important protection — it means you are never trapped past your elected term.

The Guaranteed Minimum Interest Rate (GMIR) in the base contract is 0.05%, which is essentially a regulatory floor, not a meaningful safety net. New York contracts carry a 1.00% GMIR. That asymmetry is worth noting if state of residence matters for your buyer.

The most meaningful secondary feature is the waiver set combined with the immediate free-withdrawal provision. Many MYGAs withhold access in year one or limit waivers to terminal illness only. SmartSelect 6-Year allows 10% free from day one, and provides separate waivers for nursing-home confinement, terminal illness (limited life expectancy of 12 months or less), RMDs, and guaranteed annuity options. The confinement and terminal-illness waivers are not available in California, which matters if state availability is a consideration.

This waiver breadth is meaningful for buyers who want the rate lock but have realistic concerns about needing funds for health-related events.

You can take up to 10% of account value per contract year from day one with no surrender charge and no MVA. That is immediate access, noncumulative, with a $250 minimum per withdrawal. Beyond that, you are inside the surrender schedule and subject to both the charge and the MVA.

The MVA — Market Value Adjustment — means your effective penalty fluctuates with interest rates. If rates have risen since you bought the contract, the MVA adds to your surrender charge. If rates have fallen, it may offset part of the charge. This two-directional risk is real and should not be dismissed for buyers who might need more than 10% in a given year.

The MVA does not apply in the last 30 days of the GRO period or at death. At the end of the surrender period, no charge and no MVA apply.

There are no base contract fees, no rider fees, and no spread charges. The rate you see is the rate you get, credited daily, guaranteed for six years. The only cost is implicit: the difference between what Western & Southern earns on your premium and what they pass back to you, which is a normal feature of any fixed insurance product.

The tradeoffs are structural. First, the MVA adds uncertainty to any surrender above the free amount. Second, the GMIR of 0.05% in non-NY states is a regulatory minimum rather than a practical floor — in a severe credit event, you could theoretically earn almost nothing on a renewal, though that scenario is theoretical given the carrier's A+ rating. Third, the product is sold through the bank channel, which may limit where you can open it and where you can service it afterward.

Legal Entity: Western-Southern Life Assurance Company

Parent: Western & Southern Financial Group

A.M. Best Rating: A+