Secure Term MVA Fixed Annuity 7-Year review

Yes, with a caveat. This is a good annuity for someone who has genuine seven-year money and wants a locked rate from a carrier with the highest possible financial strength rating. The caveat is the MVA: if you think there's a real chance you'll need more than the free-withdrawal allowance before year seven is up, this product's exit terms are meaningfully less predictable than those of a non-MVA fixed annuity. Know your time horizon before committing.

The rational reason to buy this annuity over a comparable non-MVA product is usually the rate. Carriers who offer an MVA can typically provide slightly better yields because the adjustment mechanism shares interest-rate risk with the buyer, reducing the insurer's cost of offering early surrenders. For buyers who are confident they won't need early access, that tradeoff is straightforward: accept the MVA risk you're unlikely to trigger, get a better rate in return. New York Life's A++ rating adds a layer of confidence that few other carriers can match.

I think this product is best for someone in their 50s or 60s with non-qualified money or rollover IRA assets they genuinely don't need to touch for seven years. The tiered rate structure rewards larger deposits — the jump from 4.20% at the base tier to 4.85% at $100,000 is meaningful over a seven-year compounding period. It is less suited to anyone who might face an unexpected liquidity need, anyone primarily shopping for income features, or anyone who wants the flexibility of a shorter commitment.

You're buying a fixed guarantee from one of the strongest insurance companies in the United States. New York Life Insurance Company has maintained its A++ rating from A.M. Best through every major financial shock of the past several decades. The issuing entity here — New York Life Insurance and Annuity Corporation — is a subsidiary of that parent, and the parent's financial strength is the real thing being offered. What you're not buying is index participation, upside optionality, or income guarantees. This is a rate-lock product.

The Secure Term MVA 7-Year credits interest through a single fixed account. The rate is set at issue and guaranteed for the full seven-year term — there are no renewals, no resets, and no moving parts. The current rate tiers as of May 2026 are 4.20% for balances between $15,000 and $24,999, 4.40% for $25,000 to $49,999, 4.60% for $50,000 to $99,999, and 4.85% for $100,000 and above (including a $1,500,000 tier at the same rate). Interest compounds tax-deferred inside the contract.

The tiered structure is worth paying attention to. A $100,000 deposit earns 4.85% annually, fully guaranteed for seven years. That's a materially different outcome than the entry-level tier, and for buyers who are near a tier threshold, it may be worth rounding up the initial deposit to step into a better rate band.

The most important secondary feature here isn't really a feature — it's the carrier. New York Life's A++ A.M. Best rating is the highest possible grade and reflects the company's long history of financial stability, its mutual ownership structure (no shareholders means profit stays inside the company to protect policyholders), and its conservative investment portfolio. For a fixed annuity, where the entire value proposition is a contractual promise to return money plus interest, the carrier's ability to keep that promise is arguably the most important factor in the purchase decision.

The free-withdrawal provision differs by deposit size. For premiums between $15,000 and $99,999, you can withdraw up to 10% of account value each year without charge. For premiums of $100,000 or more, you can withdraw the greater of 10% of account value or 100% of interest earned — the latter provision is meaningful for large deposits in the early years when earned interest can exceed 10% of principal.

Amounts withdrawn above the free-withdrawal allowance are subject to the schedule below and, critically, to the market value adjustment. The MVA works like this: when you surrender early, New York Life calculates an adjustment based on the difference between the interest rate environment at the time of your surrender and the rate environment when your contract was issued. If rates have risen since you signed, the adjustment will reduce your surrender value — potentially significantly. If rates have fallen, the adjustment works in your favor. This is the core tradeoff that separates MVA MYGAs from their non-MVA siblings.

The contract also includes hardship waivers for Nursing Home confinement, Disability, Unemployment, and Home Health Care. These can provide meaningful relief if your circumstances change during the surrender period.

There is no base contract fee and no rider fee — this is a clean, no-load fixed annuity. The only explicit cost is the surrender charge if you exit early, compounded by the MVA.

The structural tradeoff worth naming plainly: this is a seven-year commitment with penalty terms that are harder to predict than a standard MYGA because of the MVA. If your financial situation changes and rates have risen significantly since your issue date, your exit could cost more than you expect based on the surrender schedule alone. That's not a flaw in the product design — it's the mechanism that allows the carrier to offer the rate it does — but it needs to be part of your decision.

The minimum guaranteed surrender value is based on a 0.05% guaranteed annual return, which is the regulatory floor. In practice, you should expect to earn the contractual fixed rate over the full term, but that figure tells you the worst-case floor is very low by design.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++