Secure Term Choice Fixed Annuity II 6-Year review

Yes, for the buyer it is designed for. If your goal is principal protection with a locked guaranteed rate and you do not need the money for six years, this is a well-structured product backed by one of the strongest insurance carriers in the United States. It is less appealing if you want market-linked upside, if you need liquidity beyond the free-withdrawal provision, or if you live outside the 14 states where it is currently available.

The rational case is straightforward: a guaranteed fixed rate, zero market risk, and the backing of an A++ carrier. For someone moving money out of a CD, a maturing bond, or a savings account, the Secure Term Choice II provides a defined return horizon with a carrier that has been paying claims since 1845. The return-of-premium feature means that even if circumstances change and you need out after year two, you can recover your full premium without a net loss — that is a meaningful protection that not every MYGA offers. For larger deposits of $100,000 or more, the free-withdrawal provision steps up to give access to 100% of earned interest, which adds useful flexibility for reinvestment needs.

I think this product fits best for a conservative saver or near-retiree — likely 55 to 80 — who has identified a tranche of money they will not need for six years and wants to earn more than a CD or savings account without taking any investment risk. Qualified money (IRA rollover) and non-qualified money both work here. The broad issue-age range through 90 makes it usable even for inherited IRA situations or for older buyers who want to park capital safely. It is less suited for someone who is already drawing income from their retirement accounts and cannot spare the liquidity.

You are buying a contractual interest-rate guarantee from an insurance company. Unlike a bank CD, the mechanism is an insurance contract — which means it sits outside the FDIC system, but it also means the guarantee is backed by the carrier's general account and, in this case, by New York Life Insurance and Annuity Corporation's parent, New York Life Insurance Company, which holds an A++ rating from A.M. Best — the highest available grade. There is no index, no market linkage, and no variable element. Your return is set at contract issue and does not change. That simplicity is a feature, not a limitation.

At contract issue, New York Life sets a fixed credited rate that applies to your full account value for the 6-year surrender period. The rate is tiered by premium band: the brochure discloses five bands ranging from 4.10% at entry level up to 4.75% for larger deposits, with both the 4.75% tiers guaranteed for the full six years. Interest compounds inside the contract. At the end of the term, the full account value — original premium plus all accumulated interest — is available without penalty.

The only moving part on the rate side is the optional Performance Triggered Interest Opportunity Rider, which trades a small annual reduction in your base rate (0.15% under Option 1 or 0.25% under Option 2) for the chance to earn an additional 0.50% or 1.00% credit in years when 10-year Treasury yields rise by the specified threshold. The specifics of how the trigger is measured were flagged as low-confidence in the source brochure — if this rider is relevant to your decision, confirm the exact trigger mechanics and rate impact with your advisor or directly with New York Life before purchasing.

The return-of-premium provision is the secondary feature worth highlighting. Beginning at the second policy anniversary (or immediately for buyers aged 86-90), you can surrender the contract and receive at minimum your original premium back — no net loss of principal even if you surrender before the term ends. Most MYGAs will still return principal in a technical sense after applying surrender charges, but having an explicit return-of-premium guarantee removes ambiguity and provides a cleaner safety net. For buyers who are not certain they can stay for the full six years, this feature meaningfully lowers the downside scenario.

This is a 6-year commitment. The surrender schedule is front-loaded at 7% for the first three years before stepping down to 6%, 5%, and 4% in years four through six. That is a meaningful penalty if you need a large withdrawal early in the contract.

The free-withdrawal provision provides some relief: you can take up to 10% of account value per year without a penalty starting immediately for premiums under $100,000, or the greater of 10% of account value or 100% of earned interest for premiums at $100,000 or more (subject to a $2,000 minimum balance requirement). Hardship waivers are available for nursing home confinement, disability, and unemployment — which is standard for the category.

There is no market value adjustment (MVA) on this product, which is a meaningful advantage over MYGAs that do carry one. Your surrender charge exposure is fixed and known from day one — there is no interest-rate risk multiplier on top of the schedule.

There is no base contract fee and no income rider fee on the core product. The only explicit cost to understand is the Performance Triggered Interest Opportunity Rider, which reduces your credited rate by 0.15% (Option 1) or 0.25% (Option 2) annually in exchange for the chance to earn a bonus credit if Treasury rates move. Whether that trade is worthwhile depends entirely on your view of interest rate direction over the surrender period — and there is no guarantee the trigger fires even once. Most buyers who want simplicity and certainty will get more value skipping the rider and taking the full base rate.

The structural tradeoffs are the surrender schedule, the limited state availability (14 states as of the source brochure), and the nominal guaranteed minimum of 0.05%. That last figure is essentially a placeholder — it means the contract technically meets minimum non-forfeiture law requirements but is not a meaningful floor. The real floor is the current credited rate set at issue, which is what you are actually relying on.

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. As a mutual company, it has no shareholders — policyholders are its stakeholders. The A++ rating from A.M. Best is the highest grade the agency assigns and reflects exceptional financial strength. For a product whose value is essentially a contractual promise to pay, carrier quality is not a secondary consideration — it is core to the product's worth.