Our Professional Opinion on United Life Access and Performance SPDA
We do not recommend the United Life Access or Performance SPDA at their current published rates. The contracts themselves are straightforward fixed annuities, and United Life meets our financial-strength standard. The problem is value: competing A- or better-rated insurers currently offer materially higher guaranteed rates for comparable terms.
United Life is a good annuity company. It is rated A- by AM Best, has operated since 1962, and is part of the Kuvare group. That rating is acceptable for a multi-year guarantee, but an acceptable company does not make a below-market rate competitive.
We are still in a high-interest-rate environment, so locking money for five, six, or seven years can make sense. We would not automatically choose the shortest term. A longer guarantee can protect the owner if rates decline, provided the rate is competitive and enough liquid money remains outside the annuity. The weakness here is United Life’s current rate—not the idea of locking a longer term.
Compare United Life with the current fixed annuity and MYGA rates before applying. The live table below is the proper benchmark because rates can change without notice.
If United Life later becomes rate competitive, Performance SPDA would generally be our preferred version for money that can remain untouched. It offers 3-, 5-, and 7-year guarantees and normally pays more than Access SPDA, but excess withdrawals can trigger both a surrender charge and a Market Value Adjustment.
Access SPDA is the liquidity version. It offers 4- and 6-year guarantees, starts at a lower premium, has more generous annual access, and does not impose an MVA. That flexibility comes with a lower guaranteed rate.
Bottom line: Do not accept a materially lower guaranteed rate merely to buy from United Life. If the spread later narrows, choose Access when liquidity and avoiding an MVA matter most. Choose Performance when the higher rate is meaningful, the surrender period fits the plan, and the money is unlikely to be needed early.
What We Like
- A- rated insurer: United Life meets our minimum financial-strength standard for a multi-year fixed annuity.
- Several guarantee periods: Buyers can choose among 3-, 4-, 5-, 6-, and 7-year structures across the two product lines.
- No front-end sales charge: The full premium begins earning under the contract rather than being reduced by an upfront fee.
- No standard annual contract fee: The base contracts do not deduct a recurring annual administration charge.
- Access SPDA has no MVA: Early withdrawals above the free amount can face surrender charges, but not a separate interest-rate adjustment.
- Access SPDA provides stronger annual liquidity: The owner can generally withdraw the greater of accumulated interest or 10% of accumulated value.
- Performance SPDA offers a higher-rate design: It is built for buyers who can accept tighter access in exchange for a better guaranteed rate.
- Optional 10% access on Performance: Buyers who need more liquidity can elect it at issue, although the credited rate is reduced.
- RMD access: Contract-level required minimum distributions can generally be taken without normal surrender charges.
- Health-related waivers: Qualifying terminal illness or nursing-home confinement can waive surrender charges within stated dollar limits.
What We Don’t Like
- Current rates are not competitive: The main problem is that higher guaranteed yields are available from other A- or better-rated companies.
- Access pays less for liquidity: Avoiding an MVA and receiving broader access can come at a substantial rate cost.
- Performance imposes an MVA: The amount received after an excess withdrawal can rise or fall with market interest rates.
- The optional 10% Performance feature has a cost: Electing it reduces the annual crediting rate by 0.15 percentage points under the current design.
- No immediate return-of-premium guarantee: An early surrender can return less than the original premium.
- The minimum surrender-value floor is limited: It is based on 87.5% of adjusted premium accumulated at a basic rate, not 100% of the original deposit.
- Health waivers have dollar limits: The surrender-charge waiver is capped at $50,000 per year and $200,000 over the life of the rider.
- Death treatment depends on annuitant ownership: The surrender-charge waiver applies upon the annuitant’s death; a different owner-and-annuitant structure can produce a different result.
- Renewal rates are not the original guarantee: After the selected period, money can fall to a lower portfolio or renewal rate if the owner does nothing.
- The term names are awkward: Access uses 4- and 6-year periods, while Performance uses 3-, 5-, and 7-year periods, making direct comparisons less intuitive.
What Are the United Life Access and Performance SPDAs?
Access and Performance are single-premium deferred fixed annuities issued by United Life Insurance Company. They operate much like a multi-year fixed annuity: the owner makes one deposit, selects a guarantee period, and earns a fixed rate for that period as long as the contract requirements are satisfied.
These contracts are not tied to the stock market. The account does not lose value because stocks decline. Early withdrawals can still reduce the amount received through surrender charges and, for Performance SPDA, an MVA.
At the end of the guarantee period, the owner can generally withdraw the money, renew for another available term, leave it in the contract at a portfolio or renewal rate, or convert the value to an annuity payout option. This is why the product should be treated as a rate-lock decision rather than a lifetime-income recommendation.
Access SPDA Versus Performance SPDA
| Feature | Access SPDA | Performance SPDA |
|---|---|---|
| Primary purpose | Greater liquidity | Higher guaranteed rate |
| Guarantee periods | 4 or 6 years | 3, 5, or 7 years |
| Minimum premium | $5,000 | $25,000 |
| Higher rate band | $10,000 or more | $100,000 or more |
| Standard annual access | Greater of accumulated interest or 10% of accumulated value | Prior year’s accumulated interest |
| Optional 10% access | Included | Available at issue for a 0.15% annual rate reduction |
| Market Value Adjustment | No | Yes |
| Best fit | Buyer prioritizing liquidity and simplicity | Buyer prioritizing a competitive rate and able to hold through the term |
| Our current position | Do not recommend at current rates | Do not recommend at current rates |
How the Guaranteed Interest Rate Works
The rate is fixed for the selected guarantee period. Interest compounds inside the contract and is not taxed annually while it remains in the annuity.
The quoted rate should be compared as an annual percentage yield when possible. A rate that compounds annually is not directly comparable with a simple-interest figure unless the total maturity values are also compared.
Rate guarantees depend on maintaining required minimum contract values. A large withdrawal can reduce the amount that continues earning under the original guarantee.
Why We Do Not Automatically Prefer the Shortest Term
Shorter is not always better. When guaranteed rates are near long-term highs, a longer contract can protect the owner from reinvesting at lower rates later.
For example, if a competitive 7-year rate is equal to or higher than the available 5-year rate, the extra two years can be valuable for someone who does not need the money. The tradeoff is reduced flexibility.
Choose the term based on the rate, expected cash needs, outside emergency reserves, and the likelihood that rates will be lower when the shorter contract ends. Compare the structure with a MYGA versus a traditional fixed annuity before committing.
Access SPDA Liquidity
Access SPDA is designed for people who want more access than a typical high-rate MYGA provides. The annual penalty-free withdrawal is generally the greater of:
- Accumulated interest, or
- 10% of accumulated value.
That provision can be valuable for a retiree who expects periodic withdrawals. It should not be confused with unrestricted access. Amounts above the permitted limit are still subject to the applicable surrender schedule.
Performance SPDA Liquidity
The standard Performance version generally allows withdrawal of the prior year’s accumulated interest. That design preserves the principal but is less useful for someone who may need a larger lump sum.
A 10% annual withdrawal option can be added when the contract is issued. Under the current design, that election reduces the crediting rate by 15 basis points each year. The buyer should compare the maturity value with and without the added liquidity rather than treating the feature as free.
Surrender-Charge Schedules
| Version | Guarantee Period | Surrender-Charge Schedule |
|---|---|---|
| Access SPDA-4 | 4 years | 4%, 4%, 3%, 2% |
| Access SPDA-6 | 6 years | 6%, 5%, 4%, 3%, 2%, 1% |
| Performance SPDA-3 | 3 years | 8%, 7%, 6% |
| Performance SPDA-5 | 5 years | 8%, 7%, 6%, 5%, 4% |
| Performance SPDA-7 | 7 years | 8%, 7%, 6%, 5%, 4%, 3%, 2% |
Surrender charges apply only to the portion above the free-withdrawal amount. Even so, the schedules can cause a meaningful loss when a large early withdrawal is required.
How the Market Value Adjustment Works
Performance SPDA includes a Market Value Adjustment on applicable excess withdrawals and surrender. The MVA responds to changes in Treasury rates between contract issue and withdrawal.
- If relevant market rates have risen, the adjustment can reduce the amount received.
- If relevant market rates have fallen, the adjustment can increase the amount received.
The company’s terminology can be confusing because it may describe an adjustment created by rising rates as “positive” even though it reduces the owner’s proceeds. Focus on the dollar surrender value—not the label used for the adjustment.
Guaranteed Minimum Cash Surrender Value
Performance SPDA limits how far an MVA and surrender charge can reduce the policy. The floor is generally based on 87.5% of the single premium, reduced by prior withdrawals, accumulated at the Basic Interest Rate.
This is not the same as a contractual return-of-premium guarantee. The floor begins below 100% of premium, so the owner can still receive less than the original deposit after an early exit.
Nursing-Home and Terminal-Illness Waivers
United Life can waive surrender charges after qualifying nursing-home confinement or a physician-certified terminal illness with a life expectancy of 12 months or less.
The current waiver is limited to $50,000 per year and $200,000 over the life of the rider. It is also not available in California. Review the broader rules for annuity nursing-home and terminal-illness waivers.
These provisions release the owner’s existing account value. They do not create additional money for care and are not a substitute for long-term care insurance.
What Happens at the End of the Guarantee Period?
The end of the term is a decision point, not necessarily the end of the annuity. The owner may be able to:
- Withdraw the full value after surrender restrictions expire.
- Accept a new available guarantee period.
- Leave the value at a portfolio or annually declared rate.
- Use a direct 1035 exchange to move nonqualified money to another annuity without current taxation.
- Choose an annuity payout option.
Do not let the contract renew automatically without reviewing the new rate. The post-term portfolio rate may be substantially lower than rates available on new contracts.
Death Benefit and Beneficiary Considerations
The product information confirms that surrender charges are waived upon the annuitant’s death during the surrender period. When the owner and annuitant are different people, the outcome can differ if the owner dies first.
Confirm the exact beneficiary value and owner-annuitant structure before purchase. Review how annuity inheritance works, including payout choices and taxes.
Large deposits should also be coordinated with the applicable state insurance guaranty association limits. Those limits vary by state and are not the same as FDIC insurance.
Taxes, IRAs, and RMDs
Interest in a nonqualified deferred annuity grows tax-deferred. When money is withdrawn, gain generally comes out first and is taxed as ordinary income.
An IRA already provides tax deferral. Using retirement-account money in an SPDA should be justified by the guaranteed rate, principal protection, liquidity, and contract terms—not by additional tax deferral.
Eligible annuity RMDs can generally be taken without normal surrender charges. A taxable withdrawal before age 59½ may still face the federal 10% early-withdrawal penalty unless an exception applies.
Review the broader rules for annuity taxation before choosing qualified or nonqualified funding.
Who Should Consider These Annuities?
- A conservative saver whose United Life rate is competitive with other A- or better-rated insurers.
- Someone who wants a fixed return with no stock-market exposure.
- A buyer who can leave the money untouched for the selected guarantee period.
- A person choosing Access because annual liquidity and avoiding an MVA matter more than obtaining the highest rate.
- A person choosing Performance because the rate advantage is meaningful and early access is unlikely.
- An older buyer who values high maximum issue ages.
Who Should Avoid Them?
- Anyone who can obtain a materially higher rate from an equally or more highly rated insurer.
- Someone who may need the full premium before the guarantee period ends.
- A Performance buyer who is uncomfortable with MVA risk.
- A buyer who assumes the minimum surrender-value floor protects 100% of premium.
- Someone who needs a large long-term care benefit rather than a limited surrender-charge waiver.
- A retiree seeking the highest guaranteed lifetime income rather than fixed accumulation.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated benefits for home care, assisted living, or nursing-home expenses.
- Life insurance: May create a more efficient income-tax-free legacy than relying solely on the annuity account.
- Guaranteed lifetime-income annuity: Better when the primary problem is creating a paycheck that cannot be outlived.
Alternatives to Compare
A higher-rate MYGA: Start with an A- or better-rated insurer offering a materially higher guaranteed APY for the same term.
A no-MVA fixed annuity: Can provide cleaner early-exit treatment when liquidity matters.
A fixed indexed annuity: Appropriate when the buyer wants principal protection with index-linked growth rather than a guaranteed fixed rate.
A CD: Compare the annuity’s tax deferral and insurer guarantees with bank liquidity and FDIC coverage using our annuity versus CD comparison.
Our Final Recommendation
We do not recommend United Life Access or Performance SPDA at the current rates. There is no reason to accept a substantially lower guaranteed return when other A- or better-rated companies offer stronger rates.
If pricing becomes competitive, use Access for broader annual liquidity and no MVA. Use Performance for a higher rate when the money can remain in place. In a high-rate environment, a competitive five-, six-, or seven-year lock can be a good decision; the rate must justify the commitment.
Contact The Annuity Expert for free quotes and a no-obligation comparison of United Life Access and Performance SPDA with higher-rate fixed annuities from A- or better-rated insurers. We will compare the guaranteed APY, term, surrender schedule, MVA, annual liquidity, waiver limits, beneficiary treatment, and insurer strength before you buy coverage.
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Frequently Asked Questions
Are Access and Performance SPDAs MYGAs?
They function like multi-year guaranteed fixed annuities because the rate is guaranteed for a selected multi-year period. United Life uses the SPDA product name rather than MYGA.
Which version pays more?
Performance SPDA is designed to pay the higher rate. Access SPDA trades some rate for broader liquidity and no Market Value Adjustment.
Which version has better liquidity?
Access generally provides the greater of accumulated interest or 10% of accumulated value each year. Performance normally provides prior-year interest unless the optional 10% feature is elected at issue.
Does Performance SPDA have an MVA?
Yes. The MVA can increase or decrease the amount received after an excess withdrawal or surrender during the applicable period.
Is the original premium guaranteed after an early surrender?
Not necessarily. The minimum surrender-value formula begins with 87.5% of adjusted premium, so an early exit can return less than the original deposit.
Should I choose the shortest guarantee period?
No. A longer term can be beneficial in a high-rate environment when the guaranteed rate is competitive and the money will not be needed. Compare the actual rate and liquidity rather than automatically choosing the shortest term.
Are nursing-home withdrawals unlimited?
No. The current surrender-charge waiver is limited to $50,000 per year and $200,000 over the life of the rider, subject to contract requirements.
What should I do when the guarantee period ends?
Compare the renewal or portfolio rate with new annuities before doing nothing. You may withdraw, renew, exchange, or use an income option depending on the contract and your goals.