Secure Term Choice Fixed Annuity 7-Year review

Yes, for the right buyer. This is a strong MYGA for someone who wants a fully guaranteed rate for seven years, is not looking for index exposure or income features, and values the security of buying from one of the highest-rated carriers in the country. It is not a good fit for someone who wants flexibility to reposition funds before year seven, needs income distributions sooner, or is drawn to the growth potential of an FIA.

The main reason to buy Secure Term Choice 7-Year is certainty. The rate is locked, the carrier is A++, and there is no complexity to manage. A secondary reason is tax deferral — interest accumulates without an annual 1099 until withdrawal, which matters for buyers in higher tax brackets. The tiered rate structure also means that buyers depositing $100,000 or more pick up a modestly better yield than the entry-level band, which is worth factoring into sizing decisions.

I think Secure Term Choice 7-Year is best for someone in or near retirement who wants to dedicate a portion of their assets to a guaranteed, predictable return without any market exposure or insurance complexity. The unusually wide issue-age range — including inherited IRA applicants starting at age 0 and qualified buyers up to age 90 — means this can work in estate and inherited-account situations where most MYGAs are unavailable. It is less appealing for buyers who want the higher potential returns of an FIA, need regular income distributions, or have any realistic chance of needing the principal before the surrender period ends.

You are buying a guaranteed interest rate from New York Life Insurance and Annuity Corporation, a subsidiary of New York Life Insurance Company — the largest mutual life insurer in the United States. That mutual structure matters in a way that stock-company carriers cannot replicate: New York Life has no publicly traded stock and no obligation to maximize shareholder returns, which is part of why it has earned A++ from A.M. Best — the highest rating the agency awards. In practice, you are buying seven years of locked interest with no moving parts, no allocation decisions, and no annual re-evaluation.

Secure Term Choice is a multi-year guaranteed annuity, meaning the fixed interest rate is set at contract issue and does not change for the full 7-year term. There are no caps, participation rates, or index strategies to understand. The rate is tiered by premium band — as of the brochure date, buyers in the lower band (roughly under $25,000) receive a lower rate, while larger deposits step up through several tiers to the highest available rate. The spec indicates current rates ranging from approximately 4.15% to 4.80% annually depending on premium size, though those figures are drawn from the brochure and should be verified directly since rates on MYGAs can reset between the brochure print date and your application date.

An optional Performance-Triggered Interest Opportunity Rider is also available, but it comes at a cost: it reduces the guaranteed base rate by 0.15% to 0.25% per year. That trade-off — giving up a portion of your guaranteed rate for a chance at a higher credited amount in favorable conditions — deserves careful consideration before accepting. For most buyers choosing this product for certainty, the plain guaranteed-rate version is likely the cleaner choice.

The Return of Premium benefit is the secondary feature worth understanding. It guarantees that if you surrender the contract at the second policy anniversary or later (or immediately for ages 86–90), surrender charges on withdrawals will never exceed the total interest credited to the contract. In plain terms: even if you need to exit before the surrender period ends, you cannot walk away with less than your original premium. That is not standard across the MYGA market, and it meaningfully reduces the downside scenario for buyers who are uncertain about the full 7-year horizon.

This is a 7-year commitment. The surrender schedule runs at 7% for the first three years, then steps down: 6% in year four, 5% in year five, 4% in year six, 3% in year seven, and 0% thereafter. There is no market value adjustment, which removes one of the more unpredictable liquidity risks that comes with some longer-duration MYGAs.

Free withdrawals are meaningful and accessible: 10% of account value is available without charge for premiums under $100,000, and for larger deposits the free amount is the greater of 10% or 100% of interest earned. You must maintain a $2,000 minimum account balance. Required minimum distributions are handled in a practically friendly way, and the RMD-friendly design means qualified-account holders do not have to stress about forced distributions triggering surrender charges.

The Return of Premium feature, available at the second anniversary, provides an additional floor: even on withdrawals that would otherwise be subject to charges, the penalty cannot exceed total interest credited. That is a genuine liquidity safety net, not just marketing language.

There are no base contract fees and no mandatory rider fees. This is as clean a cost structure as a 7-year fixed annuity gets. The only fee scenario arises if you elect the optional Performance-Triggered Interest Opportunity Rider, which reduces your guaranteed rate by 0.15% to 0.25% annually. Unless the performance trigger fires and credits a materially higher amount in a given year, that fee can quietly erode your guaranteed return.

The structural tradeoffs are straightforward. You are accepting 7 years of meaningful surrender charges in exchange for a locked rate and carrier-grade stability. The minimum premium is accessible at $5,000, but the best rates come at higher deposit tiers, so smaller-balance buyers will receive a lower yield. There are also state-level variations in certain contract provisions — if you are in one of the fourteen states where specific terms differ, confirm the applicable terms before applying.

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 the largest mutual life insurer in the United States and one of only two insurance companies to hold the A++ A.M. Best rating. As a mutual insurer — owned by policyholders, not shareholders — New York Life has no obligation to prioritize short-term returns over long-term solvency. For MYGA buyers who care primarily about carrier strength, that distinction is meaningful.