Our Professional Opinion on the Guaranty Rate Lock MYGA
We recommend considering the Guaranty Rate Lock MYGA when its guaranteed rate is competitive with other A- or better-rated insurers. Guaranty Income Life is rated A- by AM Best with a stable outlook, which meets our minimum standard.
The product is available in guarantee periods from 3 through 10 years. That broad term menu is one of the biggest things we like about it because you can choose almost any maturity date from short-term to long-term.
We are in a high-interest-rate environment, so the longer terms can be attractive if you do not need the money. A competitive 7-, 8-, 9-, or 10-year rate can reduce reinvestment risk and lock today’s interest-rate environment for a long time.
The product also uses premium bands, so larger deposits may receive a better guaranteed rate. That can make Guaranty Rate Lock more competitive for bigger cases.
The biggest thing we do not like is the liquidity. Normal free partial withdrawals generally do not begin until year two and are limited to 5% of the prior anniversary accumulation value. Many competing MYGAs provide 10% annual access, so this is clearly weaker.
RMDs receive favorable treatment, and the contract includes nursing-home and terminal-illness waivers that can provide additional access. The base annuity also has no front-end charge or annual contract fee.
Because Guaranty Income Life is at the minimum rating we accept, the rate still needs to be competitive. If an A or A+ company offers essentially the same rate with better liquidity, we would choose the stronger company.
Bottom line: Guaranty Rate Lock is a good MYGA for someone who wants a wide range of term choices and does not need much annual liquidity. The longer rate locks are useful in today’s environment, but the 5% withdrawal provision is the main drawback.
Compare Guaranty Rate Lock with the current fixed annuity rates before choosing the guarantee period.
What We Like
- A- AM Best Rating With Stable Outlook: Guaranty Income Life meets our minimum standard.
- 3- Through 10-Year Terms: One of the broadest MYGA term menus available.
- Long-Term Rate Locks: The longer guarantee periods can reduce reinvestment risk while rates are high.
- Premium-Band Pricing: Larger deposits may receive a stronger guaranteed rate.
- No Front-End or Annual Contract Fee: The base contract is simple and fee-light.
- RMD Treatment: Required minimum distributions can receive favorable withdrawal treatment.
- Health-Related Waivers: Qualifying nursing-home confinement or terminal illness can provide additional access.
What We Don’t Like
- Only 5% Normal Free Withdrawal: Many competing MYGAs provide 10% annual access.
- No Normal Percentage Withdrawal in Year One: Standard free partial withdrawals begin in year two.
- Market Value Adjustment: Excess withdrawals during the surrender period can be increased or reduced by the MVA.
- A- Is Our Minimum Rating: The rate needs to be competitive, especially when stronger-rated insurers offer similar terms.
- Long Terms Require Real Liquidity Elsewhere: A 10-year contract only makes sense if the money truly can remain untouched.
Product Overview
The Guaranty Rate Lock (GRL) Multi-Year Guaranteed Annuity (MYGA) is issued by Guaranty Income Life Insurance Company (GILICO), which is rated A- (Excellent) by AM Best and is part of the larger Kuvare group of insurance companies. This product offers guaranteed fixed interest for terms ranging from 3 to 10 years, with tiered rates that increase with higher premium amounts. Designed for conservative savers, the GRL MYGA provides principal protection, tax-deferred growth, and simple liquidity features. It does not include an income rider, so while it’s a strong option for accumulation, it lacks flexibility for income planning unless you choose to annuitize the contract. This product is best suited for investors who want safe growth over a fixed period and are comfortable monitoring term renewals closely.
Product Type
- Type: Multi-Year Guaranteed Annuity (MYGA)
- Issuer: Guaranty Income Life Insurance Company (GILICO)
- AM Best Rating: A- (Excellent)
- Parent Company: Kuvare Holdings
- Primary Goal: Safe accumulation with predictable interest
Funding Options
- Non-qualified: Savings, CDs, brokerage cash
- Qualified: IRA, Roth IRA, SEP, 401(k) rollover
- 1035 exchange from another annuity
Minimum Premium: $10,000
Higher Rate Tiers: Better interest rates are available for deposits of $100,000 and $250,000+
Key Features
| Feature | Details |
| Fixed Rate Terms | Choose 3, 4, 5, 6, 7, 8, 9, or 10 years |
| Tiered Interest Rates | Deposits over $100K and $250K receive higher guaranteed rates |
| Free Withdrawals | 5% of the account value annually starting in year two, or RMDs—whichever is greater |
| Health-Based Waivers | Terminal illness and nursing home confinement waivers included |
| MVA (Market Value Adjustment) | Applies to excess withdrawals during the surrender period |
| Death Benefit | Account value plus interest paid to beneficiaries |
| Annuitization | Optional after term to convert funds into lifetime income (no rider) |
| No Fees | 100% of premium earns interest from day one |
Surrender Charge Schedule
| Term | Charges by Year |
| 3-Year | 9%, 8%, 7% |
| 4-Year | 9%, 8%, 7%, 6% |
| 5-Year | 9%, 8%, 7%, 6%, 5% |
| 6-Year | 9%, 8%, 7%, 6%, 5%, 4% |
| 7-Year | 9%, 8%, 7%, 6%, 5%, 4%, 3% |
| 8-Year | 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2% |
| 9-Year | 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1% |
| 10-Year | 9%, 8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%, 0.50% |
MVA applies to any withdrawal beyond the penalty-free limit unless a health waiver is triggered.
What Happens After the Term Ends?
At the end of the selected term, you enter a 30-day renewal window. During this time, you may:
- Withdraw your full balance without penalty
- Exchange into another annuity using a 1035 exchange
- Annuitize to begin a lifetime income stream
If you do nothing, the annuity will automatically renew into another term of the same length, with a new interest rate and new surrender charge schedule. This auto-renewal can lead to unintended long-term commitments, especially if interest rates are lower.
Why Comparing Annuities Matters
Though the GRL MYGA provides guaranteed growth, buyers should compare it with other options to avoid overpaying in opportunity cost:
- Other MYGAs may offer shorter surrender schedules
- Fixed indexed annuities (FIAs) offer growth with downside protection and optional income riders
- MYGAs from other A-rated carriers may have higher renewal transparency or stronger liquidity features
A qualified annuity broker can help ensure you’re not locked into lower-performing products or unnecessary restrictions.
Pros and Cons
| Pros | Cons |
| A- AM Best rating with Kuvare backing | No lifetime income rider—only annuitization |
| Tiered rate structure rewards large deposits | 5% withdrawal limit may be restrictive |
| Transparent surrender and MVA provisions | Long surrender charge durations on longer terms |
| Health-based waivers for early access | Auto-renewal risk if renewal window is missed |
| No annual fees, fully allocated premium | No market-linked or inflation-adjusted growth potential |
Who Should Consider This Annuity?
Best for:
- Conservative investors who want fixed, tax-deferred growth
- Individuals seeking a CD alternative or safe IRA rollover option
- High-net-worth investors who can benefit from tiered rate boosts
- People who don’t need income during the term and plan to monitor renewals
Not for:
- Retirees needing income without annuitization
- Clients who want inflation protection or market participation
- People who may forget to act during the renewal window
- Those wanting access to more than 5% annually
Final Verdict
Is the Guaranty Rate Lock MYGA a good annuity? Yes—this is a solid product for those focused on fixed accumulation and principal protection. With the backing of GILICO and Kuvare, and an A- rating, it offers a trustworthy path to short- or mid-term financial growth. However, lack of an income rider, limited liquidity, and auto-renewal risk reduce flexibility. If you’re seeking income, consider a fixed indexed annuity with a GLWB, or if you’re just shopping for fixed growth, compare rates and liquidity features from other A-rated carriers before locking in.
Talk to The Annuity Expert for Free Quotes
Before you commit to this MYGA:
- Compare the GRL’s rates to other A-rated MYGAs
- Explore indexed annuities if you want income options
- Understand your renewal risk and surrender timelines
Contact The Annuity Expert today to review the best annuity options for your financial plan and get personalized, no-cost recommendations.
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