Unlike variable investments tied to market performance, the Security 5 MYGA locks in a declared interest rate for the entire five-year guarantee period. That means your principal is protected from market losses, and your interest rate does not fluctuate during the term. For retirees who cannot afford another 2008-style downturn, this kind of predictability can be invaluable. Interest compounds daily, maximizing accumulation over time, and growth is tax-deferred until funds are withdrawn. Tax deferral allows your money to compound without annual 1099 taxation, which can meaningfully increase long-term results compared to taxable savings vehicles. If you are evaluating how fixed annuities compare to other conservative options, you may also want to understand Fixed vs. Indexed Annuities and determine which structure aligns best with your timeline and risk tolerance.

The Wichita National Life Security 5 is structured as a single premium deferred annuity, meaning you fund it with a lump sum deposit and allow it to accumulate over the five-year period. The current minimum premium is $10,000, making it accessible to many retirees, while larger deposits can be accommodated within carrier guidelines. Because this is a MYGA, the interest rate is declared upfront and guaranteed for the full surrender term. There are no participation rates, caps, spreads, or index credits to calculate—just straightforward, predictable compounding. For investors seeking clarity and simplicity, that transparency is a major advantage. Many clients who previously relied on CDs are surprised to learn that MYGAs often offer more competitive yields while maintaining principal guarantees backed by the claims-paying ability of the issuing insurance company.

Liquidity is an important consideration in any retirement strategy. The Security 5 MYGA includes penalty-free Required Minimum Distribution (RMD) withdrawals for qualified accounts, ensuring compliance without unnecessary fees. In addition, an optional 10% Free Withdrawal Rider may be available, allowing you to withdraw up to 10% of the contract value annually after the first year without surrender charges. This feature provides flexibility for unexpected expenses while preserving the core accumulation objective. If you are researching how surrender schedules work, reviewing Annuity Surrender Charges Explained can help you better understand how early withdrawals are calculated and when penalties apply.

Like most MYGAs, the Security 5 includes a defined surrender charge schedule during the five-year guarantee period. Withdrawals above the free amount during that term may be subject to surrender charges and, depending on contract design, could involve a Market Value Adjustment (MVA). An MVA can increase or decrease the amount received depending on prevailing interest rate movements at the time of withdrawal. While many clients never trigger an MVA because they hold the annuity to maturity, it is important to understand how it works. You can learn more about this concept in our guide to Market Value Adjustment (MVA) Explained.

Another important feature of the Security 5 MYGA is its death benefit protection. In the event of the contract owner’s passing, beneficiaries generally receive the full surrender value without surrender penalties. If the optional Enhanced Death Benefit Rider is selected, the payout may be based on the full accumulated account value instead. This can provide meaningful protection for spouses and heirs while preserving tax-deferred growth during the owner’s lifetime. Spousal continuation provisions may also allow a surviving spouse to step into the contract and continue the annuity without triggering surrender charges, maintaining the long-term retirement strategy intact.

At the end of the five-year guarantee period, you are not locked into a single outcome. You may renew the contract at a new declared rate, withdraw funds without surrender penalties during the renewal window, or convert the accumulated balance into a structured income stream. For retirees seeking guaranteed income, annuitization or income rider options can transform accumulated value into predictable payments. If you are exploring how annuities function in income planning, our guide on Annuity Options for Retirees Without Pensions outlines how MYGAs and other annuity types can help replace lost pension income.

Tax treatment is another reason many retirees choose MYGAs. Growth inside the contract is tax-deferred, meaning you do not pay taxes annually on interest earned. Withdrawals are taxed on a last-in, first-out (LIFO) basis for non-qualified funds, and qualified accounts follow standard IRA taxation rules. Understanding these nuances is critical when coordinating withdrawals with Social Security income and other retirement assets. You can review additional details in our overview of Taxation of Annuities Explained.

Choosing the right annuity is not just about rate; it is about fit. At Diversified Insurance Brokers, we compare top-rated carriers nationwide and help clients evaluate product strength, financial ratings, liquidity provisions, and long-term flexibility. If you are comparing providers, our breakdown of Best Annuity Companies Compared can provide additional context before making a final decision. We believe education leads to confidence, and confidence leads to better retirement outcomes.

🎯 Ready to secure predictable growth for your retirement? Our team will analyze your goals, timeline, and liquidity needs to determine whether the Wichita National Life Security 5 MYGA—or another fixed annuity option—is the most appropriate solution. Submit the form above to receive a personalized annuity comparison and ensure you are locking in the strongest available rate for your situation.