How CurrentRate® MYGA Works
First-Year Certainty, Annual Updates After That
Choosing a fixed annuity often comes down to a balance between protection, predictability, and flexibility.
Many clients like the idea of a multi-year guaranteed annuity, or MYGA, because it offers principal protection, tax-deferred growth, and clear contract terms. But in a changing interest rate environment, some clients may hesitate to commit to one declared rate for an entire multi-year period.
Oceanview CurrentRate® MYGA was designed for clients seeking a fixed annuity with an interest-crediting methodology that may reflect changes in interest rate conditions over time.
It offers the core features clients expect from a fixed annuity, while using an interest-crediting approach designed to stay more aligned with current interest rate conditions over time, subject to contract terms.
CurrentRate MYGA is a 5-year Multi-Year Guaranteed Annuity with a first-year declared interest rate and annual rate updates after the first contract year. The result is a straightforward structure that gives clients clarity at issue and a defined process for how credited rates are determined in future contract years.
A 5-Year MYGA With a Defined Rate Process
CurrentRate MYGA is a Single Premium Deferred Multi-Year Guaranteed Annuity. That means a client makes a one-time purchase payment, and the money grows tax-deferred within the contract until withdrawals are taken.
The product is designed around a 5-year guarantee period and uses a two-part interest-crediting structure:
First contract year:
The client receives a declared interest rate set at issue. This rate is guaranteed for the first contract year.
After the first contract year:
The credited interest rate is reviewed and updated once per year using a transparent, rules-based formula defined in the contract.
This structure gives clients a clear starting point, along with a defined method for annual rate updates after year one.
Step 1: The First-Year Rate Is Set at Issue
When the contract is issued, CurrentRate MYGA provides a declared interest rate for the first contract year.
This first-year rate is known upfront and guaranteed for that first year. For clients who value clarity at the beginning of the contract, this provides a known credited interest rate for the first contract year.
During this first year, the client does not need to track market rates or calculate anything. The declared rate applies according to the terms of the contract.
This first-year structure helps make CurrentRate easy to understand from the start: the client knows the initial credited rate and the 5-year guarantee period associated with the contract.
Step 2: After Year One, the Rate Updates Annually
Beginning in the second contract year, CurrentRate MYGA works differently from many traditional MYGAs.
Instead of using one declared interest rate for the full guarantee period, the credited interest rate is reviewed and updated once each year. The annual update is based on a defined formula tied to the 1-Year U.S. Treasury Rate plus a guaranteed spread, as described in the contract.
In simple terms:
Annual credited rate = 1-Year U.S. Treasury Rate + Guaranteed Spread
The credited rate may increase or decrease from year to year depending on market conditions. Rates are not guaranteed to increase. However, the method used to determine the rate is clearly defined in advance.
That distinction matters.
CurrentRate MYGA does not ask clients to guess where rates will go. Instead, it gives them a transparent process for how rates are determined after the first contract year.
The Two Parts of the Formula
After year one, the CurrentRate crediting method includes two main components.
1. The Market-Based Component
The market-based component is tied to the 1-Year U.S. Treasury Rate, as defined in the contract.
Because this portion is connected to a market reference rate, it may move up or down over time. If the 1-Year U.S. Treasury Rate rises, the market-based component may be higher. If it falls, the market-based component may be lower. Therefore, the rate in year 2 and beyond can go up or down depending on whether the U.S. Treasury Rate increases or decreases.
This is what allows the credited rate to stay more connected to current interest rate conditions during the 5-year guarantee period.
2. The Guaranteed Spread
The guaranteed spread is set when the contract is issued and remains fixed during the 5-year guarantee period.
This spread is added to the market-based component to determine the credited rate for that contract year.
The spread is important because it gives the formula a consistent element. While the market-based component may change, the guaranteed spread remains the same during the guarantee period.
A simple way to think about it is:
The market component can move. The guaranteed spread stays fixed.
Together, those two pieces determine the credited interest rate after the first contract year.
A Simple Hypothetical Example
Here is a simple example for illustration only.
Assume the annual rate update is being calculated and:
- The 1-Year U.S. Treasury Rate is 4.66%
- The guaranteed spread is 1.00%
The credited rate for that contract year would be:
4.66% + 1.00% = 5.66%
This example is hypothetical and not predictive of future results. Actual credited rates will vary. Rates may increase or decrease and are not guaranteed to increase.
The purpose of the example is not to predict future rates. It is simply to show how the formula works.
What Clients Do—and Do Not—Have to Manage
One of the benefits of CurrentRate MYGA’s design is that clients do not need to track interest rates themselves or make annual crediting decisions.
Oceanview applies the interest-crediting methodology automatically according to the contract provisions.
That means the client can understand the process without needing to manage it.
They know:
- The first-year rate is declared at issue.
- After year one, the rate is reviewed annually.
- The formula is defined in the contract.
- The guaranteed spread remains fixed during the 5-year guarantee period.
- The market-based component may increase or decrease.
- The credited rate will never be less than the guaranteed minimum interest rate stated in the contract.
This approach is designed to provide clarity, not complexity, through a defined interest-crediting methodology.
After the first contract year, the credited interest rate may increase or decrease based on the contract’s annual rate-reset formula and prevailing interest rate conditions.
What Remains Protected
Because CurrentRate MYGA uses an annual rate update after the first contract year, clients may naturally ask whether their principal remains protected.
The answer is yes, subject to contract terms and the claims-paying ability of Oceanview Life and Annuity Company.
CurrentRate MYGA is a fixed annuity within the MYGA category. It is not a stock market product, and the contract value is not directly exposed to stock market fluctuations.
The credited rate may change annually after the first year, but the core fixed annuity protections remain in place:
- Principal protection from market loss, subject to contract terms
- Tax-deferred growth until funds are withdrawn
- A guaranteed minimum interest rate stated in the contract
- A defined 5-year guarantee period
- Clear renewal and withdrawal provisions
The combined credited rate will never be less than the guaranteed minimum interest rate stated in the contract.
Guarantees are backed by the financial strength and claims-paying ability of Oceanview Life and Annuity Company.
How CurrentRate Differs From a Traditional MYGA
A traditional MYGA typically provides one declared interest rate for the full guarantee period. For some clients, that may be exactly what they want.
CurrentRate MYGA takes a different approach.
With CurrentRate:
- The first-year rate is declared at issue.
- The credited rate may update annually after the first year.
- The update is based on a defined formula.
- The formula includes the 1-Year U.S. Treasury Rate plus a guaranteed spread.
- The spread remains fixed during the 5-year guarantee period.
This makes CurrentRate an option for clients who like the protection and simplicity of a MYGA but are concerned about committing to one declared rate for the entire guarantee period.
It is not designed to replace every traditional MYGA conversation. Instead, it gives financial professionals another way to address a specific client concern: uncertainty around future interest rate conditions.
Access and Renewal Features
CurrentRate MYGA is designed as a long-term retirement solution, but it includes features that may provide access and flexibility.
After the first contract year, clients may withdraw up to 10% of their contract value each year without surrender charges or Market Value Adjustment. Free withdrawals are not available during the first contract year, and unused free withdrawal amounts do not carry over from year to year.
At the end of the 5-year guarantee period, the contract includes a 30-day window prior to the end of the period. During that window, the client may withdraw the contract value with no surrender charges or Market Value Adjustment, continue the contract for a new 5-year guarantee period, apply the contract to a settlement option, or continue into another guarantee period that may be available at renewal.
If no action is taken, the contract automatically renews into a new 5-year guarantee period. A new declared interest rate applies for the first year of the new period, and annual rate updates resume thereafter using the CurrentRate methodology.
The Bottom Line
CurrentRate MYGA is designed to make interest crediting transparent and easy to understand in a changing rate environment.
It begins with first-year certainty: a declared rate set at issue and guaranteed for the first contract year.
After that, it uses a defined annual update process based on the 1-Year U.S. Treasury Rate plus a guaranteed spread. The credited rate may increase or decrease, but the formula is transparent and the spread remains fixed during the 5-year guarantee period.
For clients who want principal protection, tax-deferred growth, and a MYGA structure—but are hesitant to commit to one declared rate for the full period—CurrentRate offers a different way to approach the conversation.
Talk with a financial professional to determine whether Oceanview CurrentRate MYGA may be appropriate for your retirement goals, time horizon, liquidity needs, and financial situation.
Guarantees are based on the claims-paying ability of the issuing insurance company. The fixed annuity product with form number ICC26 OLA SPDA – CurrentRate, or variations of such, are issued by Oceanview Life and Annuity Company (d/b/a Oceanview Life and Annuity Insurance Company in California; NAIC# 68446). May not be available in all states. Not available in the state of New York or Vermont. Policy form numbers and provisions may vary. Rates are guaranteed depending on the guarantee period selected at policy issue, subject to contract terms.
OCEANVIEW ANNUITIES ARE PRODUCTS OF THE INSURANCE INDUSTRY AND NOT GUARANTEED BY ANY BANK NOR INSURED BY THE FDIC OR NCUA/NCUSIF OR ANY OTHER FEDERAL GOVERNMENTAL AGENCY. MAY LOSE VALUE. NO BANK/CREDIT UNION GUARANTEE. NOT A DEPOSIT. MAY ONLY BE OFFERED BY A LICENSED INSURANCE AGENT. GUARANTEES ARE SUBJECT TO THE CLAIM PAYING ABILITY OF THE ISSUING INSURANCE COMPANY.
Annuities issued by Oceanview Life and Annuity Company, 1331 17th Street, Suite 1050, Denver, CO 80202. In California, doing business as Oceanview Life and Annuity Insurance Company www.oceanviewlife.com.
Annuities are generally designed as long-term retirement solutions and have certain limitations. They are generally not intended to replace emergency funds, serve as income for day-to-day expenses, or support short-term savings goals. Please refer to the contract for complete details, including features, limitations, and charges.
A.M. Best Rating as of February, 11, 2026, is subject to change. A (Excellent) rating is third highest of fifteen possible rating classes for financial strength. The outlook assigned to these Credit Ratings is stable.
This material is a general description intended for general public, educational use. Oceanview Life and Annuity Company is not providing investment advice for any individual or in any individual situation, and therefore nothing in this correspondence should be read as such.
Neither Oceanview Life and Annuity Company nor any of its representatives may provide tax or legal advice. Clients should consult their own qualified tax or legal advisors.
Withdrawals in excess of any Free Partial Withdrawal amounts are subject to a Surrender Charge and Market Value Adjustment (MVA). The MVA may have the effect of increasing or decreasing the Surrender Value of the withdrawal depending on the market interest rate changes.
The IRS may impose a penalty for withdrawals prior to age 59 ½. Withdrawals may also be subject to ordinary income tax.
Contracts purchased in an IRA or other tax-qualified plan provide no additional tax-deferral benefit, since they are already afforded tax-deferred status. All annuity features, risks, limitations, and costs should be considered prior to purchasing an annuity within a tax-qualified retirement plan. For non-qualified annuities, tax deferral is not available to corporations and certain other entities.
Rates, renewal caps, and declared interest rates, will always follow contract provisions relative to minimums and maximums stated. Oceanview determines, at its discretion, the rates, renewal caps and, declared interest rates above the contractual minimums that are guaranteed.