Secure Term Choice Fixed Annuity II 5-Year review

Yes, for the right buyer. If your goal is a guaranteed fixed rate from a carrier with the highest possible financial strength rating, this is a clean product that does what it promises. It is less appealing if you want index-linked upside, a shorter commitment, or broader state availability than the 14-state footprint currently allows.

The primary reason is certainty paired with carrier quality. Buyers who specifically want to hold a guaranteed instrument with New York Life behind it — rather than a lesser-rated insurer — will find this is one of the cleaner ways to do it. A secondary reason is the tiered rate structure: larger deposits earn meaningfully higher rates, which rewards buyers who consolidate into one contract rather than spreading across multiple carriers. The included Return of Premium feature also adds a layer of flexibility that many competing MYGAs charge extra for or simply do not offer.

I think this product fits best for pre-retirees or retirees in their 50s through early 70s who are parking a meaningful chunk of safe-money assets for five years and care deeply about carrier stability. It is also a reasonable fit for inherited IRA situations, given the broad issue-age range of 0-90. Buyers who prioritize maximizing yield above all else may find other MYGAs with more competitive rates but weaker carriers; the question is whether that carrier tradeoff is worth it to them.

You are buying a contractual promise from New York Life Insurance and Annuity Corporation to credit a specified fixed interest rate for five years. The rate is set at issue, guaranteed for the full term, and does not move with interest rates or any market index. That simplicity is the point. There are no allocation decisions to make, no index selection, no volatility to manage. The product is closer in feel to a bank CD than to a sophisticated investment product — but with tax deferral on interest growth and, if held inside a qualified account, the standard IRA treatment.

The product credits a fixed interest rate set at contract issue and guaranteed for the five-year term. Rates are tiered by deposit band: four brackets currently — under $25,000, $25,000-$49,999, $50,000-$99,999, $100,000-$1,499,999, and $1,500,000 and above. The highest rate tier applies to deposits of $1,500,000 or more. The tiered structure means that deposit sizing meaningfully affects yield, which is worth factoring in if you are consolidating assets from multiple sources.

A separate optional feature called the Performance-Triggered Interest Opportunity Rider is also available. This rider adds a bonus interest credit if the 10-year Treasury rate grows by a specified threshold, in exchange for a small reduction in the base fixed rate. Option 1 reduces the base rate by 0.15% annually and credits 0.50% if 10-year Treasury growth meets or exceeds 0.50%. Option 2 reduces the base rate by 0.25% annually and credits 1.00% if growth meets or exceeds 1.00%. Whether the rider is worth the base rate reduction depends on your outlook for Treasury rates — it is not a guaranteed enhancement.

The Return of Premium benefit is the secondary feature worth highlighting. At no additional charge, it gives the owner the ability to surrender the contract for at least the full principal — at the second policy anniversary for issue ages 0-85, and immediately for ages 86-90. This is meaningful because it limits the absolute worst-case liquidity outcome. You may lose interest if you exit early, and surrender charges may still apply outside the ROP window, but a full principal return at the two-year mark is a genuine consumer protection that not every MYGA in this class provides for free.

The five-year surrender schedule runs 7%, 7%, 7%, 6%, 5%. That front-loading — three years at 7% — is modestly higher than the peer median for 5-year MYGAs, which often taper faster. If there's any realistic chance you need principal in the first three years, that should weigh in your evaluation.

The free-withdrawal provision is more accommodating for larger deposits. Contracts below $100,000 can take out 10% of account value annually without a surrender charge. Contracts of $100,000 or more get the better of 10% of account value or 100% of earned interest — meaning larger contracts with meaningful accumulated interest may access considerably more than the flat 10% floor. All free withdrawals require leaving at least $2,000 in the account.

Surrender charge waivers apply for nursing home confinement, disability, and unemployment. There is no market value adjustment on this product, which removes one layer of unpredictability that some competing MYGAs carry.

There is no base contract fee and no rider fee on the core product. The only explicit cost is the implicit one: the fixed rate you earn is the spread New York Life keeps above what it pays on the underlying general account assets. That is standard for any MYGA and not something unique to this product.

If you elect the Performance-Triggered Interest Opportunity Rider, the cost is a reduction in your base fixed rate — 0.15% annually for Option 1 or 0.25% for Option 2. That is a real, ongoing cost regardless of whether the rider triggers. Buyers who are uncertain about Treasury rate direction should weigh that base-rate reduction carefully before electing the rider.

The main structural tradeoff is the 14-state distribution limit. If you are not in California, Connecticut, Illinois, Massachusetts, Maryland, Minnesota, Montana, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Texas, or Washington, this product is simply not available to you.

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 holds the A++ (Superior) rating from A.M. Best, the top grade A.M. Best assigns. For a MYGA buyer, carrier strength is not an abstract concern — the guarantee backing your fixed rate comes entirely from the insurer's general account obligations. New York Life is one of a small number of major annuity carriers that has maintained this top rating continuously, which is a genuine differentiator in a market where most carriers sit at A or A+.