Secure Term Choice Fixed Annuity 8-Year review

Yes, for the right use case. This is a straightforward principal-protection product backed by one of the strongest carriers in the insurance industry. If you want rate certainty, zero market risk, and the peace of mind that comes with A++ financial strength, this delivers. It is not the right product if you might need significant liquidity in the next eight years, or if your primary goal is income generation — there is no income rider available on this contract.

The central reason to buy Secure Term Choice 8-Year is rate certainty from a carrier with genuine financial heft. New York Life's A++ rating from A.M. Best is not a marketing claim — it is the highest possible grade, and very few carriers hold it. Buyers who have lived through 2008 or 2020 and want to know their principal is safe in an institution that has paid claims through every economic cycle since 1845 will find that reassurance meaningful. The secondary reason is the tiered rate structure: a $100,000 deposit earns 4.60%, and a $1.5M+ deposit earns 4.85%, locked in for the full 8-year term as of the May 2026 rate filing. That is a tangible reward for committing more.

I think this is best for buyers in or near retirement who have already separated their money into buckets — money they will not touch for 8 or more years versus money they may need sooner. The 8-year version makes the most sense for the long-bucket allocation: pension rollovers, inherited IRA assets being managed conservatively, or non-qualified savings earmarked for a specific long-term purpose. The wide issue age window (0–90 for non-qualified) makes it accessible for inherited IRA situations, which is worth noting. It is less suited for anyone who might face an unexpected need for capital, or for anyone whose main goal is maximizing growth through market participation.

You are buying a contractual promise from New York Life Insurance and Annuity Corporation — backed by the parent, New York Life Insurance Company — to credit a specific rate on your deposit every year for 8 years, guaranteed. There is no index to track, no cap to monitor, no participation rate to negotiate at renewal. The rate set at issue is the rate you earn through the end of the surrender period. What that simplicity buys you is predictability; what it costs you is the possibility of earning more if rates rise after you lock in. This is a contract designed for savers who have decided that certainty is worth more to them than upside optionality.

The core mechanic is simple: you deposit a premium, New York Life guarantees a fixed rate on that amount for 8 years, and interest compounds tax-deferred inside the contract. Current rates (as of the May 2026 rate filing) are tiered by deposit size: 4.20% for deposits between $5,000 and $24,999, 4.40% for $25,000–$49,999, 4.60% for $50,000–$99,999, and 4.85% for deposits of $1.5M or more. These rates are guaranteed for the full 8-year term — they are not subject to renewal risk during the surrender period the way some shorter-term MYGA renewals are structured.

The minimum guaranteed return is 0.05% per year, which functions as a contractual floor if rates were somehow adjusted, but that figure is not the expected outcome — it is a regulatory floor. The actual credited rate, locked at issue, is the operative number.

The most important secondary feature here is the Return of Premium provision. Starting on the second policy anniversary for annuitants aged 0–85 (and immediately for ages 86–90), New York Life guarantees that you can receive back at least the total premiums you paid, less any withdrawals you have already taken. This is offered at no charge and does not reduce the fixed rate. In practical terms, it means that if you need to access principal for a major life event — a health crisis, a family obligation — and you have held the contract for at least two years, you are guaranteed not to lose nominal principal. That is a meaningful protection for a product with an 8-year surrender schedule, and it distinguishes this contract from MYGAs that offer no such backstop.

Secure Term Choice 8-Year is designed for money you can genuinely commit for 8 years. The free-withdrawal provision is reasonably designed: for deposits under $100,000, you can take out up to 10% of account value per year without a surrender charge, starting immediately. For larger deposits ($100,000+), the provision is more generous — you can withdraw the greater of 10% of account value or 100% of all interest earned in the contract year. That second option is particularly useful for savers who want to access the interest generated without touching principal.

Beyond the free-withdrawal amount, charges apply on a declining schedule: 7% in years one through three, then stepping down 1% per year until the charge disappears after year eight. There is no market value adjustment on this contract, which removes one layer of uncertainty that some competing MYGAs carry.

Even with free-withdrawal access, this is not a liquid product. The $2,000 minimum remaining balance means very small accounts cannot be fully drawn down incrementally. And anyone who needs to exit fully before the surrender period ends will face real costs. The Return of Premium provision at year two provides some comfort, but it is not a substitute for genuine liquidity planning.

There are no explicit fees on this contract. No base contract charge, no mortality and expense fee, no rider fee. The only cost is implicit: the spread between the rate New York Life credits to you and the return it earns on its invested assets. That spread is not disclosed, but it is the standard economics of every fixed annuity — the carrier earns more than it credits, and the difference funds operations, reserves, and profits.

The real tradeoffs are structural. Eight years is a long surrender commitment relative to the 5- and 7-year alternatives in the MYGA market. The carrier's financial strength is exceptional, but that strength does not change the math of a long lockup. Rates might rise materially after you lock in, and you will not benefit from that. And the minimum guaranteed return of 0.05% is a floor no one should rely on — it is a contractual safeguard, not a realistic outcome, but it is worth understanding that it exists.

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 one of the oldest and largest mutual life insurers in the United States, founded in 1845. The A++ A.M. Best rating reflects the highest possible assessment of financial strength — it is held by very few carriers and is not subject to the same shareholder pressures that affect stock-company competitors. For buyers who weight carrier quality heavily, this is a meaningful differentiator.