Secure Term MVA Fixed Annuity 8-Year review

Yes, for the right buyer. If you have eight-year money, want a fully guaranteed rate, and are not expecting to surrender early, this is a well-built MYGA from a carrier with the strongest possible financial strength rating. It is a less comfortable fit for anyone who thinks there is a meaningful chance they will need the principal back before the surrender period ends, because the MVA can compound the exit cost in ways that are harder to predict than a straight surrender charge.

The main reason to buy this annuity is certainty. The rate is locked from issue, not subject to annual resets or renewal risk, and the carrier behind it is New York Life Insurance and Annuity Corporation, a subsidiary of New York Life — the only life insurer with a sustained A++ rating from A.M. Best for over 50 consecutive years. The secondary reason is the tiered rate structure: buyers bringing $100,000 or more receive a meaningfully higher yield than buyers at the minimum, which makes this especially attractive for premium consolidations or IRA rollover amounts in that range. There are no fees to erode the stated rate, and the death benefit passes the full account value to named beneficiaries without surrender charge.

I think this contract is best for someone in the 55–75 range who has a clear eight-year savings horizon — perhaps money earmarked for a specific retirement income bridge, or IRA assets they do not expect to touch — and wants the simplest possible structure: a locked rate, a great carrier, and no annual fees. It is well suited to non-qualified or qualified money alike, and the broad issue age range including Inherited IRA owners makes it useful in estate and inheritance planning contexts. It is not a good match for someone who values access to principal above guaranteed yield, or for anyone who may need liquidity in the first few years when both the surrender charge and a potentially adverse MVA could apply simultaneously.

You are buying a guaranteed contract where New York Life commits to crediting a fixed interest rate every year for eight years, no matter what the market does. The account value grows at the stated rate; there is no index, no participation rate, no cap, and no volatility. What makes this version different from the non-MVA Secure Term is the MVA clause, which adjusts your surrender value based on a comparison between contract rates at issue and prevailing interest rates at the time of surrender. That means the actual cost of leaving early is not fixed — it moves with market rates — and in a rising-rate environment it will add to your exit cost on top of the standard surrender charge.

The crediting mechanism is simple: New York Life guarantees a fixed annual interest rate for the full eight-year term from the day you fund the contract. The rate is tiered by premium size:

- Premiums of $15,000–$24,999: 4.25% annually

- Premiums of $25,000–$49,999: 4.45% annually

- Premiums of $50,000–$99,999: 4.65% annually

- Premiums of $100,000 or more: 4.90% annually

These rates are current as of the brochure date and are guaranteed at issue — they do not reset annually as some MYGA rates do during the term. The minimum guaranteed surrender value (MGSV) provides a contractual floor of 0.05% annual growth on the net premium, so there is a baseline guarantee even in the worst case, but in practice the stated crediting rates are the operative figures.

The secondary feature worth understanding is the Market Value Adjustment (MVA). An MVA is not a fixed charge — it is an interest-rate-driven modifier that can increase or decrease your surrender value if you exit before the contract matures. When interest rates have fallen since you bought the annuity, the MVA typically works in your favor and may add to what you receive on surrender. When interest rates have risen, the MVA works against you and can significantly increase the effective exit cost beyond the stated surrender charge. This is the structural reason the Secure Term MVA version can offer a better rate than the non-MVA Secure Term — New York Life is sharing some interest rate risk with the policyholder. That tradeoff is worth understanding clearly before choosing this version over the non-MVA alternative.

The free-withdrawal provision is relatively generous for an eight-year MYGA. Policyholders with premiums under $100,000 can withdraw up to 10% of account value with no surrender charge at any time — including in the first year. For premiums of $100,000 or more, the free amount is the greater of 10% of account value or 100% of interest earned, which for larger contracts and longer holding periods can be a meaningful liquidity window. The account must maintain a minimum balance of $2,000.

Withdrawals above the free amount are subject to the surrender charge schedule and a market value adjustment:

The 7% charge in years 1 through 3 is meaningful, and the MVA on top of that charge in a rising-rate environment can make early exit genuinely expensive. This is not emergency money.

There are no annual contract fees and no rider fees on this product — the full stated rate goes to work in the account without drag from explicit charges. That is a real advantage for a fixed annuity. The tradeoffs are structural rather than fee-based. The MVA means your effective surrender cost is not predictable until the moment you surrender. The eight-year surrender schedule is long relative to the 5-year and 3-year alternatives in the Secure Term family. And the stated rates in the spec are a snapshot — New York Life may offer different rates at the time of application, though the rate is locked at contract issue.

State availability is limited to 14 states (CA, CT, IL, MA, MD, MN, MT, NH, NJ, NY, PA, TN, TX, WA), which is a narrower footprint than many competitors.

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 A.M. Best's A++ (Superior) rating, the highest available, and has held it longer than any other life insurer. For a fixed annuity — a product whose value is entirely dependent on the carrier's ability to make good on its promises — that longevity matters. There are no shareholders; New York Life is a mutual company, which removes a source of capital pressure that can affect policyholder-facing decisions at publicly traded carriers.