Secure Term MVA Fixed Annuity II 7-Year review

Yes, for the right buyer. If you have money you genuinely will not need for seven years, want a fixed guaranteed rate rather than index-linked crediting, and care about carrier financial strength, this is one of the stronger MYGAs in the market. It is not a good fit for anyone who might need more than the free-withdrawal amount before the term ends — the MVA turns that situation into a harder calculation than a plain surrender charge would.

The main reason is certainty. A MYGA buyer usually wants a fixed, guaranteed rate for a defined period without stock market exposure. The secondary reason to choose this specific product over a competitor is the New York Life name and its A++ rating — a distinction that genuinely matters for buyers who prioritize carrier strength over chasing the highest available yield. The tiered banding structure also makes this more compelling for larger deposits: a $100,000 deposit earns a higher rate than a $50,000 deposit, and a $1,500,000 deposit earns a better rate still.

I think this product is best for a conservative saver in or approaching retirement with a defined block of money — likely a rollover IRA, a non-qualified inheritance, or a maturing CD — who wants a guaranteed yield for seven years and has no expectation of needing the principal during that window. The wide issue-age range (0-85 for non-qualified accounts, including inherited IRAs) also makes it relevant for beneficiaries taking over an inherited IRA who want a predictable, fee-free vehicle to hold the assets. It is less appropriate for anyone under 70 who might need to access principal for near-term expenses or anyone who wants upside beyond a fixed rate.

You are buying a contract that guarantees a specific interest rate for seven years in exchange for locking up your premium for that term. There are no moving parts — no index strategies, no caps, no participation rates, no income riders. The rate you see at issue is the rate you will earn through the end of the term. What distinguishes this from a bank CD is the tax-deferred growth (interest is not taxed until you withdraw), the death benefit (your heirs receive the full account value), and the insurance company's general account backing rather than FDIC coverage. The MVA adds one layer of complexity: if you exit before the term ends on amounts beyond your free-withdrawal allowance, the insurance company adjusts the surrender value based on interest-rate movements since you bought. If rates have risen, that adjustment works against you.

The core mechanic is simple: you deposit a lump sum, the carrier applies a fixed credited rate each year, and the balance compounds tax-deferred for seven years. The rate you receive depends on your premium tier. As of the rate sheet in the source brochure (dated May 4, 2026), the tiers run from 4.20% at the low band through 4.40% at $25,000, 4.60% at $50,000, 4.85% at $100,000, and 4.85% at $1,500,000. The two top tiers carry the same rate, suggesting the current ceiling for this product is 4.85% regardless of deposit size above $100,000. These rates are locked for the full seven-year term — they do not reset annually the way some MYGAs do after an initial guarantee period.

The secondary feature worth understanding is the market value adjustment. When an insurance carrier issues a MYGA, it typically invests your premium in bonds and other fixed-income instruments. If you want to terminate early and rates have risen since you bought, the assets backing your contract are worth less in the open market — and the MVA passes some of that mark-to-market risk to you. In practical terms: if you bought at 4.50% and the market is now at 5.50%, exiting early means both the surrender charge and a downward MVA. If rates have fallen, the MVA can actually work in your favor. The key takeaway is that the MVA makes early exit less predictable than a plain surrender charge would be. For a buyer who genuinely intends to hold to maturity, the MVA is largely irrelevant. For anyone with any chance of needing the money early, it deserves explicit attention before signing.

The free-withdrawal provision is relatively generous for a MYGA with an MVA. Smaller accounts ($15,000–$99,999) can withdraw 10% of account value each year immediately from contract issue. Larger accounts ($100,000 and above) get the greater of 10% of account value or 100% of interest earned — which is particularly useful for buyers who want to take distributions equal to what they've earned without touching principal. In all cases, at least $2,000 must remain in the contract.

Beyond the free amount, early withdrawals are subject to the surrender schedule below and the MVA:

Three hardship waivers are available: nursing home confinement, disability, and unemployment. These provide relief in genuine emergencies but do not eliminate the MVA in all states. State-specific variations apply in California, Connecticut, Illinois, Massachusetts, Maryland, Minnesota, Montana, New Hampshire, New Jersey, New York, Pennsylvania, Tennessee, Texas, and Washington.

There are no annual contract fees, no rider fees, and no spread applied against your credited rate. The product earns exactly what the guaranteed rate says it earns, with no ongoing deductions. The two tradeoffs are structural rather than fee-based. First, a 7% first-year surrender charge is near the top end for a 7-year MYGA — acceptable given the seven-year horizon, but not penalty-light. Second, the MVA introduces a variable element into early-exit calculations that a standard MYGA without an MVA does not have. That complexity is real, and buyers should factor it in.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life is one of the few remaining mutual insurance companies of national scale, meaning it is owned by policyholders rather than shareholders. Its A++ rating from A.M. Best is the highest grade the agency awards and reflects the company's balance sheet strength, capital reserves, and long operating history. In the annuity market, that distinction is genuinely meaningful — a policyholder's guaranteed rate is only as reliable as the insurer's ability to pay. For buyers who treat carrier financial strength as a priority, New York Life is a short list.