Our Professional Opinion on the Aspida Synergy Choice MYGA
We recommend considering the Aspida Synergy Choice MYGA when its net guaranteed rate is among the highest available from A- or better-rated insurers and the selected liquidity option matches the buyer’s needs.
Synergy Choice is available in two-, three-, five-, and seven-year terms. Aspida currently meets our minimum AM Best standard with an A- rating, so the product qualifies for consideration.
In the current high-interest-rate environment, the five- and seven-year terms can be especially attractive for someone who can leave the money untouched. Locking a competitive rate for longer reduces the chance of a two- or three-year contract maturing after rates have fallen.
We would not automatically choose the two- or three-year term for flexibility. The shorter terms make sense when the buyer expects to need the money sooner, wants to create a MYGA ladder, or receives a materially better short-term rate. Otherwise, the longer rate guarantee may provide more value.
The second decision is liquidity. The base contract generally provides the highest rate but offers very limited normal withdrawal access before the guarantee period ends. Buyers can add an interest-withdrawal option or an annual percentage withdrawal option, and both reduce the guaranteed rate.
Do not pay for liquidity you do not expect to use. Someone with adequate emergency savings may be better served by the higher no-liquidity rate, particularly when intentionally locking in today’s rates for five or seven years.
Someone who expects to take interest, RMDs, or annual withdrawals should compare the lower liquidity-adjusted rate against competing MYGAs that include similar access automatically.
Our bottom line: Synergy Choice is a good customizable MYGA at the minimum rating level we accept. In today’s rate environment, the longer terms can make sense when the buyer can leave the money alone and the net rate remains competitive after selecting any needed liquidity feature.
Compare the net Synergy Choice rate with the current fixed annuity rates before purchasing.
What We Like
- A- AM Best Rating: Aspida meets our minimum financial-strength standard.
- Two-, Three-, Five-, and Seven-Year Terms: Buyers can match the guarantee period to their timeline.
- Long-Term Rate Locks: The five- and seven-year terms can reduce reinvestment risk in a high-rate environment.
- Customizable Liquidity: The owner can add interest-only access or an annual percentage withdrawal feature.
- Higher Base Rate Without Liquidity: Buyers who do not need access are not forced to pay for it.
- Full Account-Value Death Benefit: Beneficiaries receive the contract value without surrender charges or an MVA.
What We Don’t Like
- The Base Contract Has Very Limited Liquidity: Normal withdrawals can remain subject to charges until the guarantee period ends.
- Liquidity Reduces the Rate: Both optional withdrawal features lower the guaranteed interest rate.
- Market Value Adjustment: Early withdrawals above the free amount can be increased or reduced by the MVA.
- No Return of Premium: An early exit can produce less than the original deposit.
- Minimum Acceptable Rating: A- meets our standard, but stronger insurers may offer similar or better rates.
Overview
The Aspida Synergy Choice™ MYGA is a single-premium multi-year guaranteed annuity (MYGA) that offers guaranteed interest for 2, 3, 5, or 7 years. Issued by Aspida Life Insurance Company, an A-rated insurer backed by Ares Management Corporation, this product combines predictable growth, flexible withdrawal features, and streamlined digital onboarding. It’s designed for conservative investors who want steady returns, tax deferral, and a safe place to grow retirement funds—qualified or non-qualified—without market risk.
Product Type
- Annuity Type: Fixed annuity (MYGA)
- Issuer: Aspida Life Insurance Company
- AM Best Rating: A- (4th highest of 13)
- Use Case: CD or bond alternative, short-term asset preservation
- Income Option: Annuitization only (no GLWB rider)
Funding Options
You can fund this MYGA with:
- Non-qualified funds (bank savings, brokerage, matured CDs)
- Qualified funds (IRA, Roth IRA, SEP IRA, Inherited IRAs)
- 1035 Exchanges (tax-free transfers from another annuity)
How the Synergy Choice MYGA Works
You deposit a single premium of $25,000 or more and lock in a fixed interest rate for a 2-, 3-, 5-, or 7-year term. The rate is guaranteed for the entire term, and all interest grows tax-deferred. The longer the term, the higher the potential fixed rate (the premium size may also affect your credited rate).
Optional Withdrawal Features (affect interest rate):
- Free Interest Withdrawal – Start taking interest monthly, quarterly, or annually after 30 days.
- 10% Free Withdrawal – Withdraw up to 10% of the contract value annually starting in year 2.
- For qualified accounts, such as IRAs, RMDs are exempt from surrender charges and MVA, even if they exceed 10%.
Death Benefit
Upon death, your named beneficiary receives the full contract value—free from surrender charges and MVA. This avoids probate and is paid as a lump sum unless otherwise elected.
Surrender Charges and Market Value Adjustment (MVA)
Surrender charges apply to withdrawals above free allowances during the term. The MVA can increase or decrease the withdrawal amount based on current interest rates compared to your contract issue date. Note: Selecting optional withdrawal features reduces your guaranteed interest rate, so consider the trade-off between flexibility and growth.
What Happens After the Term Ends?
When your 2-, 3-, 5-, or 7-year term ends, you have several options:
- Withdraw Your Funds: Take full value penalty-free.
- Renew: You may renew the annuity with a new term and rate.
- Transfer via 1035 Exchange: Move to another annuity to extend deferral or add income features.
- Annuitize: Convert your contract into guaranteed income payments for a set period or life. This decision is irreversible, and we typically do not recommend it unless no better alternatives exist.
If no action is taken, your contract may automatically renew. Always review your options with a broker before the maturity date.
Why Comparing Annuities Matters
The Synergy Choice MYGA is competitive, but other MYGAs may offer:
- Higher rates for the same term
- Stronger liquidity features with no impact on rate
- GLWB riders for income you can’t outlive
- Longer histories and higher-rated insurers
A comparison ensures you get the best rate, surrender flexibility, and post-term options that align with your specific retirement goals.
Pros and Cons
| Pros | Cons |
| The interest rate lowered if you select liquidity features | No income rider (GLWB) |
| Simple fixed interest with no market risk | The interest rate lowers if you select liquidity features |
| Optional RMD waiver and interest withdrawal | No inflation protection |
| Probate-free death benefit | Annuitization is the only income option—and it’s irreversible |
| 10% free withdrawals (with rider) | Market value adjustment may reduce withdrawal value if rates rise |
| Streamlined, 100% digital application process | No access before age 59½ without IRS penalty (for qualified funds) |
Who Should Consider the Synergy Choice MYGA?
Best for:
- Individuals nearing retirement who want short- to medium-term growth
- IRA owners looking for penalty-free RMD access
- Savers replacing CDs with tax-deferred growth
- Those needing a safe place to park funds for 2–7 years
Not ideal for:
- Retirees seeking guaranteed lifetime income (no GLWB option)
- Younger investors needing liquidity before age 59½
- People are concerned about inflation risk on their retirement income
- Those who may need more than 10% liquidity annually
Final Verdict
Is the Aspida Synergy Choice MYGA a good annuity? Yes—if you want guaranteed growth, principal protection, and flexibility to access RMDs or interest without risk of loss. The product is especially well-suited for conservative investors replacing CDs or bonds. However, it lacks a lifetime income option, so if your primary goal is retirement income, a fixed indexed annuity with a GLWB rider may be a better choice.
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