Knighthead Life Staysail MYGA Review (2026): Issued by Merit Life, A- Rated
Written & reviewed by Hans Goldstein, EA, independent licensed insurance producer · CA license 4273294 · NPN 20602398Admitted to practice before the IRS
Issuer and rating checked on knightheadlife.com · Updated
Knighthead Life's MYGA is Staysail, issued by Merit Life Insurance Co., which Knighthead Life says AM Best rated A- (Excellent) as of November 13, 2025. Staysail rates are not published on Knighthead's public site, so check any quote against the market: A-rated-or-better 5-year MYGAs were paying about 5.50% to 6.05% on October 14, 2026.
Correction (September 24, 2026): this page used to call the issuer "Knighthead Annuity & Life Insurance Company" and showed a Staysail-style rate table (about 5.30% / 5.65% / 5.75% for 3/5/7 years, $25,000 minimum) with no date or source. The issuing company is Merit Life, and the rates could not be verified, so the table has been removed.
What we could verify
| Item | What the company says | Checked |
|---|---|---|
| Brand | Knighthead Life, part of Knighthead Insurance Group | September 24, 2026 |
| Issuing insurer | Merit Life Insurance Co. | September 24, 2026 |
| AM Best rating | A- (Excellent), as of November 13, 2025 | September 24, 2026 |
| Products listed | Staysail (MYGA); Chartline (FIA with minimum interest guarantee); Chartline Bonus (FIA with premium bonus) | September 24, 2026 |
| Staysail rates | Not published on the public site | September 24, 2026 |
Rates expire like milk.
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How to judge a Staysail quote
- Compare the rate to the benchmark. MYGA benchmark: insurers rated A or better topped out around 5.50% to 6.05% on 5-year compound-interest MYGAs (public carrier rate sheets, October 14, 2026); rates vary by state, premium and carrier.
- Ask for the surrender schedule, free-withdrawal amount and whether a market value adjustment applies, in writing, for your state.
- Check your state guaranty association limit and keep the premium with any one insurer at or below it.
- Know the renewal terms. Ask what happens at the end of the guarantee period and how long the window is to move the money.
CD vs MYGA, after tax
What $100,000 earns in 5 years: CD vs MYGA, after tax
Rates used: CD 5.00%, the top nationally available 5-year CD (Bankrate, October 14, 2026); change it to the rate you are offered. MYGA 5.95%, the best A-rated rate we track as of October 13, 2026: Delaware Life Pinnacle Plus 5-year (AM Best A-, negative outlook, 7/31/2026), $100,000 and up, effective October 6, 2026 (Delaware Life rate sheet).
| CD, interest taxed every year | $121,081 |
|---|---|
| MYGA, tax-deferred, before tax | $133,507 |
| MYGA after paying tax on all the interest at withdrawal | $126,136 |
| Tax deferral alone adds about | $674 |
| MYGA ahead of the CD, after tax | $5,055 |
Assumes 22% federal and 0% state income tax, no withdrawals, rates held for the whole term. MYGA interest is taxed as ordinary income when you withdraw it, not as capital gains. Gains taken before age 59 1/2 can owe a 10% IRS penalty, and cashing out early can cost a surrender charge.
In an IRA both grow tax-deferred, so the edge there is the rate alone. Bank and credit union deposits are FDIC or NCUA insured up to the limits; a MYGA is backed by the issuing insurer's claims-paying ability and your state's guaranty association up to its limits, not the FDIC. General education, not tax, legal or financial advice.
MYGA vs CD on $100,000 for 5 years
| 5-year CD at 4.50% APY | 5-year MYGA at 5.50% | |
|---|---|---|
| Tax on interest | Every year | Deferred until withdrawn |
| Value after 5 years, 24% federal tax | ~$118,300 | ~$123,300 (tax paid at the end) |
| Backing | FDIC | Insurer + state guaranty association |
Sources
- knightheadlife.com, checked September 24, 2026
- public carrier rate sheets (MYGA benchmark), October 14, 2026
- DepositAccounts 5-year CD table, September 24, 2026
Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) and is not affiliated with Knighthead Life or Merit Life. Figures are copied from the sources named, as of the dates shown; confirm current terms and rates with the issuer before you buy. MYGA figures are market benchmarks, not quotes.
Frequently asked questions
Who issues the Knighthead Staysail MYGA?
Merit Life Insurance Co. Knighthead Life's website says Knighthead Life is underwritten by Merit Life Insurance Co., part of Knighthead Insurance Group.
What is Knighthead Life's AM Best rating?
A- (Excellent). Knighthead Life's website states Merit Life was rated A- by AM Best as of November 13, 2025 (checked September 24, 2026).
What are Staysail MYGA rates?
Knighthead Life does not publish Staysail rates on its public site, so we do not list them. For context, A-rated-or-better insurers were paying about 5.50% to 6.05% on 5-year MYGAs on October 14, 2026 (public carrier rate sheets). Get the Staysail rate for your state and premium in writing and compare.
What annuities does Knighthead Life sell?
Its site lists three: Staysail (multi-year guaranteed annuity), Chartline (fixed indexed annuity with a minimum interest guarantee) and Chartline Bonus (fixed indexed annuity with a premium bonus).
Is a MYGA safer than a CD?
They are backed differently. A CD is FDIC-insured up to $250,000 per depositor, per bank, per ownership category. A MYGA is backed by the insurer's claims-paying ability and, if the insurer fails, by your state's life and health guaranty association up to that state's limit.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
A MYGA locks your rate for the full term, so check two things first: whether this carrier's rate holds up against the rest of the market, and whether the rating tradeoff is worth it. I'll review the rate, the surrender schedule and the carrier's strength before you sign.
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Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.