Secure Term MVA Fixed Annuity II 5-Year review

Yes, with an important caveat about the MVA. As a pure accumulation MYGA, this is a solid product — the rates are structured to reward scale, the free-withdrawal provision is accessible from day one, and New York Life's carrier strength is about as good as the annuity market offers. The caveat is that the MVA makes early surrender genuinely unpredictable, not just expensive. If there's a reasonable chance you'll need to exit before the 5-year mark, that risk deserves serious attention.

The rational case is straightforward: you have a meaningful sum (ideally $100,000 or more, where the top tier rates apply), you don't need the money for five years, and you want a locked guaranteed return from a carrier whose solvency you don't want to think about again until the contract matures. New York Life's A++ rating from A.M. Best puts it in the top tier of carriers by financial strength — that matters to buyers who lived through 2008 or who hold a large portion of their savings in one contract. The tiered rate structure also means depositing $100,000+ is meaningfully rewarded over the $15,000 floor.

I think this is best suited for a conservative accumulator in or near retirement — someone in their 50s or 60s rolling over a qualified account or parking non-qualified savings who wants certainty for five years and is not shopping for income guarantees. The broad issue age range (18–85 for non-qualified) means it works for inherited IRA situations and for younger buyers who simply want a guaranteed savings vehicle. It is a poor fit for anyone who might need principal access beyond 10% in the next five years, or who does not understand that the MVA can amplify effective surrender costs during rising-rate environments.

You are buying a contract that guarantees you a fixed interest rate, locked at issue, for exactly five years — with no participation in any index or market and no rider complexity. The mechanics are simple: the insurance company holds your premium, credits interest at the agreed rate annually, and at the end of year five you receive the full account value. What you are also buying is New York Life's balance sheet behind that guarantee. For buyers who have been burned by bank interest-rate risk or who want a predictable result without any equity exposure, that simplicity is the product. The MVA is the one piece that adds complexity, and it is worth understanding before you sign.

The product credits a fixed rate guaranteed for the full five-year contract term. That rate is set at issue and does not change. The rate you receive depends on how much you deposit at the time of contract issue:

- $25,000–$49,999: 4.05%

- $50,000–$99,999: 4.25%

- $100,000–$499,999: 4.45%

- $500,000 or more: 4.70%

Rates shown are as of May 4, 2026, and will vary for future buyers. The tiering structure means that funding at the $100,000 level picks up 40 basis points over the minimum-premium entry point, which is a meaningful difference over five years. There is no index exposure, no cap, no participation rate, and no variability — the rate you see at issue is what you earn.

The secondary feature worth understanding is the free-withdrawal structure, particularly for larger deposits. Buyers at the $100,000 threshold can take the greater of 10% of account value or 100% of interest earned — not just 10% of principal. In a contract earning 4.45% annually, that "100% of interest" option can give meaningful access to earnings throughout the contract term without touching principal. That is more generous than the standard 10%-only provision common in the MYGA market. On top of that, the contract provides hardship waivers for nursing home confinement, disability, and unemployment — three of the most common reasons someone might need to access an annuity early and not have anticipated it.

This is a 5-year commitment, and most of the surrender period carries meaningful penalties: 7% in each of the first three years, 6% in year four, 5% in year five. That is toward the higher end of the 5-year MYGA peer group for early surrender, so years one through three in particular are genuinely restrictive if you need principal beyond the free amount.

The more important liquidity risk here is the market value adjustment — MVA. A market value adjustment means your effective surrender penalty is not fixed. If interest rates have risen since you bought the contract, the MVA increases your penalty above the printed schedule. If rates have fallen, the MVA works in your favor and can reduce what you owe. In a rising-rate environment, the combination of a printed surrender charge and a negative MVA can make early exit significantly more expensive than the schedule alone suggests. This is not a theoretical risk — it is a structural feature of the contract. Buyers who have any expectation of needing the money before maturity should model both scenarios.

The good news: required minimum distributions are handled, the $100,000+ free-withdrawal provision is generous, and the hardship waivers cover nursing home, disability, and unemployment. For buyers who hold for the full term, none of this matters — the contract matures cleanly at year five.

There are no explicit contract fees. No base contract charge, no rider fee, no mortality and expense charge in the way a variable annuity would have. The cost of the guarantee is built into the spread between what New York Life earns on the underlying portfolio and what it credits to you — that is standard for fixed annuities and is not disclosed separately, nor is it unique to this product.

The real tradeoffs are structural. The printed surrender charges are meaningfully higher than some competitors in the 5-year MYGA market, particularly in years one through three. The MVA is a real added risk layer. And the minimum premium of $15,000 — while accessible — earns the lowest rate tier; buyers below $100,000 give up 40 basis points compared to the top tier for what is essentially the same product and the same guarantee. The A++ carrier quality and the clean liquidity features at higher deposit levels offset those tradeoffs for the right buyer, but they are worth naming clearly.

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 largest mutual life insurers in the United States and carries A++ from A.M. Best — the highest grade that agency awards. The annuity-issuing subsidiary, New York Life Insurance and Annuity Corporation, backs the contract. For buyers who view carrier financial strength as a meaningful part of the product decision, this is near the top of the available field.