Secure Term Choice Fixed Annuity II 4-Year review

Yes, for the right buyer. If your goal is principal protection, a predictable rate, and the peace of mind that comes from placing money with the most financially secure carrier in the category, this is a well-structured MYGA. It is not the right product for someone who needs regular access to more than the free-withdrawal amount, wants market-linked upside, or is looking for income rider features. But as a 4-year principal-protection vehicle, it does what it promises with very little complexity.

The core reason to buy this product is certainty. The guaranteed rate is locked at issue, it does not fluctuate with indices, and the carrier behind it — New York Life — holds an A++ A.M. Best rating that virtually no competitor matches. The secondary reason is the Return of Premium feature: after the second policy anniversary (and immediately for buyers ages 86-90), the contract guarantees you will receive at least your premiums paid minus withdrawals, and surrender charges from that point forward will never exceed the interest credited. That is a meaningful floor that goes beyond what most MYGAs offer.

I think this product is best for buyers who are either near retirement or already retired, have conservative risk tolerance, want a known outcome rather than market-linked potential, and place a premium on carrier financial strength. It works well for non-qualified savings looking for tax-deferred accumulation, Inherited IRA holders (the broad 0-90 age band explicitly accommodates that use case), and people who have already decided they want a MYGA and are specifically shopping for the strongest carrier name. It is less well-suited for accumulation-focused buyers who want index participation, people who may need regular access to principal above the free-withdrawal amount, or those with a time horizon shorter than 4 years.

You are buying a fixed-rate contract, not a market instrument. New York Life sets the interest rate at issue, credits it to your account at that rate for the full 4-year term, and guarantees the principal will not decrease due to market performance. The only way you lose principal in this contract is by withdrawing more than the free amount during the surrender period and triggering a surrender charge. The guaranteed rate is banded: $25,000 earns one rate, $50,000 earns a higher rate, $100,000 earns a higher rate still, and $1,500,000 receives the maximum. Those rates as of the brochure date (May 2026) ranged from 4.00% to 4.65% annually. What you are really buying is predictability and the financial strength of a carrier that has paid every obligation for over 175 years.

The crediting mechanism is straightforward. At issue, New York Life sets a fixed interest rate based on your premium band. That rate is guaranteed for the entire 4-year surrender period — there is no annual reset, no index participation, no cap or participation rate to monitor. Interest accumulates inside the contract tax-deferred. The account value at any point is your premium plus credited interest minus any withdrawals and applicable surrender charges. The rate bands as of the current brochure are approximately 4.00% at $25,000, 4.20% at $50,000, 4.40% at $100,000, and 4.65% at $1,500,000 — so meaningful premium size benefits buyers who can deploy larger deposits.

The secondary feature worth understanding is the Return of Premium benefit. On or after the second policy anniversary — and immediately for contracts issued at ages 86-90 — the contract guarantees the annuitant will receive at least the premiums paid, less any prior withdrawals. Equally important: from the ROP date forward, surrender charges will never exceed total interest credited. That means New York Life cannot claw back more in surrender charges than the contract has earned in interest. For buyers who want a MYGA but worry about what happens if they need the money partway through, this feature provides a meaningful backstop. It is offered at no charge and does not reduce the credited fixed rate.

This is a 4-year surrender contract, which is on the shorter end of the MYGA market. The free-withdrawal provision is reasonably generous: buyers with premiums under $100,000 can withdraw up to 10% of account value immediately without a surrender charge; buyers with $100,000 or more can take the greater of 10% of account value or 100% of interest earned. A $2,000 minimum must remain in the account.

Amounts beyond the free threshold are subject to a step-down schedule: 7% in years 1 through 3, declining to 6% in year 4, then 0% thereafter. There is no market value adjustment — what you see in the schedule is the full cost of early exit. The ROP benefit (from the second anniversary forward) ensures that surrender charges will not exceed total interest earned, which is a practical limit on downside for most buyers who hold at least two years.

There is no base contract fee, no rider fee, and no spread on the fixed crediting rate. The product's cost structure is entirely implicit — New York Life earns its spread inside the credited rate. That is normal for a MYGA and means the listed rate is your actual credited rate, not a rate net of fees. The primary tradeoff is the surrender schedule: you are committing money for 4 years, and early access above the free amount costs 6-7%. The secondary tradeoff is that smaller premium bands earn meaningfully less — the difference between the $25,000 band (4.00%) and the $1,500,000 band (4.65%) is 65 basis points annually, which compounds over 4 years. Buyers placing $5,000-$24,999 will want to benchmark this carefully against shorter-term CDs or other MYGAs at that premium tier.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life holds an A++ rating from A.M. Best, which is the highest rating the agency issues and one that fewer than a handful of U.S. life insurers can claim. As a mutual company — meaning it is owned by its policyholders rather than shareholders — New York Life has no obligation to maximize quarterly earnings at the expense of reserves. That structure has contributed to over 175 years of uninterrupted obligation fulfillment. For buyers who weight carrier safety heavily, this is a genuine and rare differentiator, not a marketing point.