Secure Term Choice Fixed Annuity 3-Year review

Yes, for the right buyer. This is a good annuity for someone who wants a guaranteed rate from a top-rated carrier and is comfortable with a three-year commitment. It is less appealing for someone who wants more upside potential, needs full liquidity, or is in a state that is not on the availability list.

The primary reason to buy Secure Term Choice 3-Year is the combination of carrier strength and a guaranteed, predictable return. New York Life's A++ rating from A.M. Best is as high as the scale goes — very few carriers maintain that level. For a retiree or near-retiree who wants to avoid market risk entirely while earning more than a savings account, the three-year commitment is often acceptable. The rate banding structure also rewards larger deposits: rates step up at $25,000, $50,000, $100,000, and $1.5 million thresholds, so buyers with more to allocate get meaningfully better terms.

I think Secure Term Choice 3-Year is best for conservative buyers who prioritize carrier quality above rate maximization and who want to keep the time commitment manageable. It works well for someone rolling over a maturing CD or an existing annuity who is not ready to commit to a longer surrender window. It also fits inherited IRA holders and non-qualified savers — the issue age range runs to 90, which is broader than most carriers offer. It is a poor fit for someone shopping for the absolute highest MYGA rate, someone in a state outside the fourteen listed, or anyone who may need significant access to the full principal before the three-year term ends.

You are buying a tax-deferred savings contract that credits a fixed interest rate guaranteed for three years. The rate is locked at issue and does not fluctuate based on market conditions during the term. At maturity, you can withdraw without surrender charges, renew, or exchange into another product. The 0.05% minimum guaranteed surrender value is the floor — it means the contract will always credit at least a nominal rate, but the real value is the competitively set declared rate, not the floor. There is also an optional Performance-triggered Interest Opportunity Rider, which allows you to earn a bonus credit if the 10-year Treasury index grows by a specified threshold — but that rider reduces your base declared rate, so it is a tradeoff, not a free enhancement.

The product credits a single declared fixed rate, guaranteed for the full three-year contract term, determined at issue. Rates are tiered by deposit size: the brochure shows current rates of 4.00% at $25,000–$49,999, 4.20% at $50,000–$99,999, 4.40% at $100,000–$1,499,999, and 4.65% at $1.5 million or more (these are point-in-time rates that will change at new issue). Interest compounds daily or annually depending on contract terms and state rules. At the end of the three-year period, a new rate is declared for any renewal term.

The guaranteed minimum credited rate of 0.05% annually is the absolute floor the carrier is contractually obligated to pay. In practice, the declared rates are well above that floor — but the floor is there as a contractual protection.

The most notable secondary feature is the Return of Premium benefit, which allows contract owners age 0–85 to take out their full original premium on the second policy anniversary at no surrender charge — even though the normal surrender period runs through year three. This is a meaningful liquidity backstop. If your circumstances change in year two, you are not trapped. For owners aged 86–90, the ROP benefit is available immediately, which reflects a sensible design for older buyers whose access needs are less predictable.

The Performance-triggered Interest Opportunity Rider is available but carries a cost — it reduces the base declared rate by 0.15% (Option 1, targeting a +0.50% bonus) or 0.25% (Option 2, targeting a +1.00% bonus). Whether the potential bonus is worth the rate reduction depends on Treasury market conditions, and this rider should be evaluated carefully rather than added by default.

The three-year surrender schedule runs at 7% in each of years one through three, dropping to 0% in year four. That is a flat, consistent structure — no taper, no partial relief in the middle years. If you need money in year one, two, or three, the 7% charge applies to any amounts above the free-withdrawal allowance.

The free-withdrawal provision is more generous than many MYGAs. For contracts below $100,000, you can take 10% of account value without penalty starting immediately. For contracts at $100,000 or above, you can take the greater of 10% of account value or 100% of all interest earned — which can be a meaningful amount in a rising-rate environment. The $2,000 minimum account balance must be maintained throughout.

There is no market value adjustment on this product, which means your surrender charge is fixed and predictable regardless of what happens to interest rates during your term. For buyers who worry about MVA risk, the absence of one is a genuine positive.

Waiver provisions cover nursing home, disability, unemployment, and home health care — broader than the nursing-home-only waivers common in simpler designs. Loans are available on TSA contracts after year one.

There are no base contract fees and no rider fees unless you elect the Performance-triggered Interest Opportunity Rider. The product's cost is implicit — the carrier earns its margin through the spread between what it earns on invested assets and what it credits to your account. That is standard for a MYGA and is not a concern unique to this product.

The real tradeoffs are structural. A three-year term means rates are lower than what the same carrier offers on 5- or 7-year versions. The flat 7% surrender charge in all three years is steeper than the tapering schedules on some competing MYGAs. And the product is only available in fourteen states, so a significant portion of the country cannot access it at all. None of these are fatal flaws, but they are the honest cost of this design.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life's A++ rating from A.M. Best is the agency's highest grade and is held by only a small number of carriers. It reflects the organization's financial reserves, long operating history, and mutual ownership structure. For a MYGA buyer who is placing significant money and wants to minimize counterparty uncertainty, the carrier story here is as strong as you will find in the market.