Secure Term MVA Fixed Annuity 6-Year review

Yes, for the right buyer. If you are putting away money you genuinely do not expect to touch for six years and you want a guaranteed rate backed by a top-tier carrier, this is a solid choice. I think the main caveat is not the surrender charge — it is the MVA, which is a real mechanism that can work against you in a rising-rate environment. Anyone who might need the money early, or who is uncomfortable with that interest-rate sensitivity, should look at the non-MVA version of the Secure Term line instead. But for buyers who can hold to maturity, the stronger rate and the A++ carrier make a compelling case.

The main reason to buy Secure Term MVA 6-Year is to lock in a guaranteed rate on money that will not be needed for six years, backed by the financial strength of New York Life. The tiered crediting structure offers a meaningful rate advantage at larger premium amounts — the spread between the low band and the $100,000+ tier is 65 basis points as of the brochure date, which adds up over a six-year compounding period. The secondary reason is estate planning: the full-account-value death benefit means the locked rate keeps compounding for beneficiaries without an MVA or surrender charge hit at death.

I think Secure Term MVA 6-Year is best for buyers in the 50-75 range who have a chunk of conservative, non-emergency savings they want earning a guaranteed rate for the next six years — IRA rollovers, CD ladders maturing into something longer, or non-qualified savings earmarked for future income. It is less suited for anyone who carries even a moderate probability of needing the principal early, and it is probably not the right fit for the buyer who is primarily shopping for income-rider-based guaranteed withdrawals, since this product has none of that machinery.

You are buying a six-year rate lock from one of the oldest mutual life insurance companies in the United States. The mechanics are straightforward: you deposit a lump sum, the carrier guarantees an annual credited rate for six years, and at the end of the term you can take the accumulated value or roll it into another product. What distinguishes this from a standard MYGA is the market value adjustment. The MVA is an interest-rate-sensitive modifier that New York Life applies to early surrenders — it can increase or decrease your effective payout depending on where rates are when you exit. In a rising-rate environment, the MVA typically reduces your surrender value further; in a falling-rate environment, it can actually work in your favor. The carrier prices a slightly higher guaranteed rate into the MVA product to compensate buyers for accepting this additional risk. Whether that tradeoff is worth it depends almost entirely on your confidence in holding to maturity.

The crediting engine here is simple: one fixed account, one guaranteed rate, locked for the full six-year term with no annual renewal uncertainty. The rate is tiered by premium band. At the brochure date (May 2026), the tiers were 4.15% for premiums from $15,000 to $24,999, 4.35% for $25,000 to $49,999, 4.55% for $50,000 to $99,999, and 4.80% for $100,000 and above. All rates are annual, credited daily or annually depending on contract terms, and guaranteed not to change during the six-year period regardless of what happens to interest rates in the broader market.

That rate certainty is the core value proposition. Unlike a bank CD, the growth is tax-deferred in a non-qualified account, which means you do not owe income tax on credited interest annually — only when you take distributions. That tax-deferral benefit compounds meaningfully over a six-year period, especially at higher premium amounts.

The MVA is the feature that most shapes the buyer decision here, and it cuts both ways. New York Life applies a market value adjustment to any surrenders in excess of the free-withdrawal amount during the six-year period. The adjustment is based on the relationship between the credited rate at the time of purchase and a reference interest rate at the time of surrender.

If you surrender when reference rates are higher than your purchase-date rate, the MVA applies a downward adjustment — your effective payout is reduced beyond the stated surrender charge. If reference rates are lower at the time you surrender, the MVA applies an upward adjustment, potentially improving your payout. In plain terms: the MVA adds interest-rate sensitivity on top of the surrender penalty. It is not a hidden fee, but it is a real risk for anyone who exits before maturity in a higher-rate environment. Buyers who are confident in their hold period can reasonably conclude the rate premium compensates them for this risk. Buyers who are not confident in their hold period should use the non-MVA Secure Term product instead.

Free-withdrawal access is available immediately after contract issue, not after a waiting year — which is a meaningful feature for MYGA buyers. For premiums below $100,000, you can withdraw up to 10% of account value each year without charge. For premiums of $100,000 or more, the free amount is the greater of 10% of account value or 100% of interest earned, which can be a substantial liquidity cushion in years when credited interest is high.

Withdrawals above the free amount are subject to surrender charges: 7% in years one through three, dropping to 6% in year four, 5% in year five, and 4% in year six, then 0% thereafter. On top of those charges, the MVA applies as well — meaning an early full surrender in a higher-rate environment could face both a 7% surrender charge and a negative MVA simultaneously. You must also maintain at least $2,000 in the account at all times.

Surrender charge waivers are available for qualifying hardship events including nursing home confinement, disability, unemployment, and home health care, which provides meaningful protection against forced exits due to health or financial events.

There is no base contract fee, no rider fee, and no spread or cap to manage. The product charges in one form only: surrender charges on early exits above the free amount, plus the MVA adjustment. Because there are no ongoing charges eroding the credited rate, the rate you see is the rate you earn — full stop.

The tradeoffs are structural, not fee-based. You are giving up six years of liquidity on amounts above the free-withdrawal provision. You are accepting interest-rate risk through the MVA on any early surrenders. And you are accepting a single-rate, single-strategy product — if rates move substantially higher after you lock in, your principal is earning less than current market rates for the remaining term. That opportunity cost is real, even if the dollar-value guarantee is intact.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life's A++ rating from A.M. Best is not a marketing claim — it is the top grade in the industry, held by only a handful of carriers. New York Life is a mutual company, meaning it is owned by policyholders rather than shareholders, which I think is relevant context for a product designed around a long-term guaranteed commitment. When you lock money in for six years, the carrier's financial strength is not academic. New York Life has maintained that top rating for decades, and that track record is a genuine differentiator in the MYGA market.