Secure Term V Fixed Annuity 4-Year review

Yes, with the right expectations. This is a good annuity for someone who wants a short guaranteed-rate contract backed by a carrier with exceptional financial strength, and who is not trying to squeeze every basis point of yield out of the MYGA market. It is less appealing for someone who is purely rate-shopping at lower deposit levels, or who wants any income or liquidity features beyond the basic free-withdrawal provision.

The rational reason to pick this over other four-year MYGAs is the carrier. New York Life Insurance Company holds the only A++ A.M. Best rating in the life insurance industry — a distinction it has maintained for decades. For buyers who prioritize the safety of the insurance guarantee above all else, that is a real differentiator, not a marketing claim. The second reason is simplicity: this product has no riders, no fees, and no crediting complexity. What you see is exactly what you get.

I think Secure Term V 4-Year is best for someone in or approaching retirement who wants to park a portion of conservative assets in a guaranteed-rate contract and sleep soundly about the carrier's ability to pay. It fits well for people with at least $50,000 to deposit, where the tiered rates become more competitive. It also works for Inherited IRA and non-qualified accounts, given the broad issue-age eligibility. It is less suited for accumulation-driven buyers looking to maximize yield, or anyone who might need more than 10% of the contract value within the four-year window.

You are buying a four-year interest-rate lock from one of the most financially stable insurance companies in the United States. There is no index participation, no rider, no bonus. The annuity credits a fixed rate — set at issue and guaranteed for the full term — on whatever you deposit. The crediting mechanism is about as simple as annuities get. The value proposition is entirely about certainty: the rate will not change, the carrier will not surprise you, and the account value will not decline as long as you stay within the free-withdrawal limit and avoid surrender charges.

Secure Term V 4-Year uses a single fixed-account crediting method. The guaranteed rate is set at contract issue based on a tiered deposit schedule: currently 4.00% for deposits below $25,000, 4.20% for $25,000–$49,999, 4.40% for $50,000–$99,999, and 4.65% for $100,000 or more (with the same 4.65% applying to deposits of $1,500,000 and above). That rate applies for the full four-year term — no renewals, no resets, no crediting-strategy decisions to make. At the end of the surrender period, the contract may be renewed, surrendered, or annuitized. There is no market value adjustment on this product, which means surrender charge amounts are fixed and predictable — a meaningful feature compared to MYGA products that include an MVA that can add to or subtract from the penalty depending on interest rate movements.

The most meaningful secondary feature is the breadth of eligible account types. Secure Term V accepts Inherited IRA, non-qualified, and qualified money with issue ages down to 0 (for Inherited IRA and NQ). That broad eligibility makes this contract useful for estate-planning and inherited-account scenarios that many MYGAs do not explicitly accommodate. The Inherited IRA designation in particular is relevant for beneficiaries managing required distribution timelines — having a four-year guaranteed-rate vehicle that explicitly allows inherited IRA ownership is not universal in the MYGA space.

Secure Term V 4-Year allows free withdrawals of 10% of account value beginning immediately at contract issue, with the restriction that at least $2,000 must remain in the account after any withdrawal. Amounts above the 10% free threshold are subject to surrender charges of 7% in years one through three, 6% in year four, and 0% in year five. There is no market value adjustment on this product, which means surrender charges are the only cost for early access — helpful for buyers who want predictable worst-case exit costs.

The contract also provides hardship waivers for nursing home confinement, disability, and unemployment. These provisions give the contract some practical flexibility for buyers who cannot anticipate four years of liquidity stability. That said, this is still a four-year commitment by design. Anyone who expects they might need a substantial withdrawal within the surrender period should weigh that risk carefully before purchasing.

There are no contract fees, rider fees, or mortality and expense charges disclosed for this product. The rate is the rate — credited fully to the account without any explicit fee drag. The implicit cost is the spread New York Life captures between what it earns on investments and what it credits to the contract, which is standard for all MYGAs and is not separately disclosed (it never is in this product type).

The structural tradeoff is yield relative to peers. At the $5,000 minimum deposit, the 4.00% rate is below what several MYGA competitors offer for a four-year term. At $100,000 or more, the gap narrows. Buyers who prioritize carrier quality over maximum yield will find this tradeoff acceptable; buyers optimizing solely for rate may look elsewhere.

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 an A++ A.M. Best rating — the highest available — which is unique in the U.S. life insurance industry. The issuing entity for this product is New York Life Insurance and Annuity Corporation, a wholly owned subsidiary. New York Life is a mutual company with no shareholders, meaning policyholder interests are structurally prioritized over outside equity holders. That corporate structure and financial strength track record are legitimate considerations when evaluating guarantees that extend over a four-year horizon.