Secure Term Choice Fixed Annuity 4-Year review

Yes, for buyers in eligible states who want principal protection and a short guaranteed term. This is a clean, no-surprises MYGA backed by a carrier with the highest available A.M. Best rating. It is less appealing for someone who needs flexibility before year four, lives outside the 14 covered states, or is primarily shopping for income or market-linked growth.

The primary reason to buy Secure Term Choice 4-Year is the combination of guaranteed rate certainty and New York Life's A++ financial strength. For someone who has already decided to use a short-duration fixed annuity as a safe-money position, the carrier quality here is a meaningful differentiator. A secondary reason is the rate tiering — buyers who can commit $100,000 or more pick up a notably better rate than the minimum premium band, which makes this product more rewarding at larger deposit sizes. The Return of Premium feature beginning at year two also gives buyers a defined off-ramp if circumstances change.

I think Secure Term Choice 4-Year is best for retirees or near-retirees who want to park a portion of their savings in a guaranteed-rate vehicle for four years without any exposure to market fluctuation. It fits particularly well for qualified account holders (IRA, inherited IRA) who need predictable growth, are not planning to access the funds during the surrender period, and value having a name like New York Life behind the contract. It is less suited for anyone under 60 with a long time horizon, anyone who might need full access before the four years are up, or anyone outside the 14 available states.

You are buying certainty. This is not an indexed annuity, not a variable product, and not a product that depends on market conditions after you buy it. New York Life locks in a fixed interest rate at issue and guarantees it for the full four-year period. Your account grows at that rate regardless of what interest rates or markets do during the term. At contract expiration, you decide what to do with the accumulated value — renew, roll to another product, or take the money. The insurance company takes on the investment risk in exchange for the spread between what they earn on assets and what they credit to your contract.

Secure Term Choice uses rate banding — the interest rate you receive depends on how much you deposit. Based on the brochure materials, the four-year guaranteed rates fall into four bands: 4.00% for deposits starting at $25,000, 4.20% for deposits starting at $50,000, 4.40% for deposits starting at $100,000, and 4.65% for deposits of $1.5 million or more. These rates are locked for the full four-year guarantee period. The contract is straightforward: one fixed rate, four years, no crediting-method decisions required after purchase.

There is also an optional Performance Triggered Interest Opportunity Rider. This rider is worth understanding before you decide: it credits an additional amount (0.50% under Option 1, 1.00% under Option 2) if a trigger condition is met, but it reduces your base guaranteed rate by 0.15% or 0.25% respectively. In other words, you are giving up a small slice of your guaranteed return for a chance at a slightly larger credit if the trigger fires. For buyers who want pure predictability, the base contract without the rider is the cleaner choice.

The Return of Premium benefit is the most meaningful secondary feature. Starting at the second policy anniversary for buyers ages 0–85, New York Life allows you to surrender the contract and receive at least your original premium back with no surrender charge. For buyers in the early 60s or older who are uncertain whether their circumstances might change, this is a real safeguard — it means the worst-case scenario after year two is getting your principal back, not getting principal minus a charge. That feature shifts the risk calculus meaningfully for cautious buyers.

This annuity is designed to hold money for four years, and the surrender schedule reflects that commitment. Withdrawals above the free-withdrawal amount in years one through four are subject to charges of 7%, 7%, 7%, and 6% respectively. There is no surrender charge in year five.

Free-withdrawal access is better than the MYGA category average, especially for larger deposits. Buyers with premiums under $100,000 can take out up to 10% of account value penalty-free at any time during the contract. Buyers with $100,000 or more get the greater of 10% of account value or 100% of earned interest — which in the early years can be a meaningful amount if interest has been accumulating. A $2,000 minimum must remain in the account after any withdrawal.

The spec notes that whether a market value adjustment applies is classified as low-confidence in the available brochure materials. The brochure as available does not indicate that an MVA applies, which would be favorable for buyers who want predictable surrender costs. Buyers should confirm MVA treatment directly with New York Life before purchase.

Hardship waivers are available for nursing home confinement, disability, unemployment, and home health care — standard protections that add flexibility without adding cost.

There are no base contract fees on Secure Term Choice 4-Year, and no income rider fee since no rider of that type is available. The only fee-bearing option is the Performance Triggered Interest Opportunity Rider, and that fee comes in the form of a rate reduction (0.15% for Option 1, 0.25% for Option 2) rather than a separate annual charge.

The real tradeoffs are structural. First, you are trading four years of full liquidity for a guaranteed rate — if rates rise materially after you lock in, you cannot easily reposition without paying the surrender charge. Second, the product is available in only 14 states, which limits who can access it. Third, the minimum premium of $5,000 is low enough to let a wide range of buyers in the door, but the most attractive rate tiers require substantially larger deposits.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life Insurance Company is among the most financially stable life insurers in the country. The A++ rating from A.M. Best — the highest on that scale — reflects the company's long history of claims-paying strength, capital discipline, and conservative investment practices. For a product where the entire value proposition is that the company keeps its rate promise over four years, carrier quality is not an abstraction. New York Life is a legitimate differentiator in the MYGA market on this dimension.