Secure Term V Fixed Annuity 3-Year review

Yes, for the right buyer. If your goal is a short-term, fully guaranteed rate with no market risk and you want the carrier backstop of an A++ insurer, this is a competent product. It is not a good fit for someone who needs liquidity above 10% annually, wants growth beyond a fixed crediting rate, or has a longer time horizon that would be better served by a 5- or 7-year MYGA at a higher guaranteed rate.

The main reason to buy Secure Term V 3-Year is carrier confidence. New York Life's A++ rating from A.M. Best is about as strong as it gets in the annuity market, and for buyers who have heard the name their entire lives and want a short, simple commitment, that trust factor carries real weight. The secondary reason is the tiered rate structure — at $100,000 or more, the product offers a higher guaranteed rate than the entry-level band, which rewards larger deposits with meaningfully better terms. For someone rolling over a CD or short-term bond position who wants tax-deferred treatment and knows they will not need the money for three years, this product fits that profile cleanly.

I think this annuity works best for retirement-age or near-retirement buyers who are parking conservative money — think a $50,000 to $300,000 tranche of their fixed-income allocation — and specifically value the New York Life carrier relationship or the approval variations in California and New York. Qualified (IRA) buyers who need to keep issue-age options broad will find this product useful given its 18–85 qualified range. It is less compelling for buyers in states outside California and New York who have access to competing MYGAs with comparable or higher rates at the same duration, or for anyone who may need funds within the three-year window beyond what the free-withdrawal provision allows.

You are buying a three-year interest rate guarantee from one of the oldest and highest-rated life insurance companies in the United States. There is nothing exotic here: the contract credits interest at a fixed rate each year, tax is deferred until withdrawal, and at the end of the surrender period you either renew or access the funds. The minimum guaranteed surrender value — meaning the absolute floor New York Life promises even in a worst case — is a 0.05% annual return, which is a contractual floor, not an expectation. Actual credited rates are set by New York Life and banded by deposit amount, with larger deposits earning higher rates across five tiers starting at $25,000.

Fixed crediting is the only mechanism in this product. There are no index strategies, no participation rates, no caps. New York Life sets a rate band schedule at issuance — currently structured across five tiers: up to $24,999, $25,000–$49,999, $50,000–$99,999, $100,000–$1,499,999, and $1,500,000 and above. As of the most recent rate communication, those tiers correspond to guaranteed rates of 4.00%, 4.20%, 4.40%, 4.65%, and 4.65% respectively, locked in for the full three-year term. These are not variable or market-linked — once you fund the contract, the rate is set for the life of the surrender period. Rate banding matters because a $100,000 deposit earns 40 basis points more than a $24,999 deposit, which on a $100,000 contract over three years adds up to a real difference.

The absence of a market value adjustment is worth noting specifically for this product. Many MYGAs impose an MVA — Market Value Adjustment — on surrenders, meaning your actual penalty can be higher or lower than the stated surrender charge depending on interest rate movements at the time you withdraw. This product carries no MVA. That means if you do take a surrender above the free-withdrawal amount, the charge is exactly 7% in years one through three — no more, no less. For conservative buyers who want to know precisely what the worst-case early exit looks like, that predictability is a genuine feature.

Three years is a short commitment in the annuity world, but it still requires a real commitment. The free-withdrawal provision allows 10% of account value per year, accessible immediately from contract issue — with the condition that at least $2,000 must remain in the account after any withdrawal. Amounts above 10% are subject to a flat 7% surrender charge in each of the three contract years, dropping to 0% in year four when the surrender period ends. There is no MVA, so the 7% is the ceiling on penalty math.

For qualified contracts, required minimum distributions are a practical consideration. At deposit sizes common for IRA rollovers, the 10% free-withdrawal provision will generally cover RMD obligations — but buyers should model their RMD against the 10% cap to confirm. The product is not RMD-friendly in the sense that any excess above 10% triggers the full 7% charge.

There are no explicit contract fees, no rider fees, and no investment management charges on this product. The only cost is opportunity cost and the surrender charge structure if you need early access. Fixed-rate annuities always carry an implicit trade: you get certainty, and in exchange you give up participation in any interest rate moves upward. If rates rise materially over the three-year term, your locked rate will look less attractive by year three. If rates fall, you look prescient. That is the fundamental bargain, and it is the same one you make with a CD — except this contract offers tax deferral, which a CD does not.

The minimum guarantee of 0.05% per year is a contractual floor, not a practical scenario given New York Life's financial position, but it is worth noting because it represents the absolute minimum the contract will credit in any year regardless of what happens to declared rates.

Legal Entity: New York Life Insurance and Annuity Corporation

Parent: New York Life Insurance Company

A.M. Best Rating: A++

New York Life is a mutual company, meaning it has no shareholders. That structure aligns the company's financial interests with policyholders rather than quarterly earnings targets, and it has contributed to New York Life maintaining the highest A.M. Best rating continuously for decades. For buyers who weigh carrier strength heavily — and for a principal-protection product, most should — this is a genuine differentiator. Not every MYGA competitor carries an A++ rating.