Secure Term V Fixed Annuity 5-Year review

Yes, for the right buyer. This is a good MYGA for someone who wants a simple, fully guaranteed rate, does not need income rider mechanics, and values the stability that comes with a carrier rated A++ by A.M. Best. It is less compelling for someone focused purely on maximizing yield — higher rates from lower-rated carriers are almost always available in the MYGA market, and the surrender schedule here starts at 7%, which is on the steeper end for a 5-year product. But if carrier quality and simplicity are meaningful criteria, this is a well-constructed option.

The main reasons to buy Secure Term V are principal protection, a predictable multi-year return, and the backing of one of the top-rated insurance carriers in North America. Someone who has moved money out of equities, does not want market exposure, and wants to park a portion of their portfolio in a fully guaranteed vehicle for five years has a sensible case for this product. The rate banding structure means larger deposits receive meaningfully higher rates — a $100,000 deposit earns a different rate than a $25,000 deposit — which rewards buyers who can concentrate their position.

I think Secure Term V is best for a conservative saver — typically someone near or in retirement — who prioritizes certainty and carrier quality over yield maximization. The wide issue-age window (down to 0 for inherited IRA and non-qualified accounts) means it can serve younger inherited-IRA situations as well. It is also a reasonable choice for a CD-to-annuity rollover, where the buyer wants a familiar locked-rate structure with tax-deferred accumulation and no market risk. It is less suited for someone who needs income rider mechanics, wants an FIA with upside potential, or expects to need more than 10% of the account value during the surrender period.

You are buying a contract where New York Life Insurance and Annuity Corporation promises to credit a specific, stated interest rate every year for five years, with no possibility of that rate going down or the underlying principal losing value due to market performance. At the end of five years, you receive full account value. In exchange, you accept that if you need access to more than the free-withdrawal allowance before the contract term ends, you will pay a surrender charge. That is the entire trade. There is no index crediting, no participation rate, no cap structure, and no rider fee. What you see is what you get.

The core feature is the banded fixed guaranteed rate. New York Life applies different credited rates depending on your initial premium amount. Based on brochure-date rates (May 2026), the bands are:

- $25,000–$49,999: 4.00%

- $50,000–$99,999: 4.20%

- $100,000–$1,499,999: 4.40%

- $1,500,000+: 4.65%

All rates are locked for the full five-year period from contract issue. That means a $100,000 deposit at 4.40% credits 4.40% every year for five years — not a teaser rate that resets after year one. This is the fundamental difference between a MYGA and a traditional fixed annuity with an initial bonus rate that subsequently adjusts. Rates shown are a snapshot and change with market conditions at the time of application.

The secondary feature worth noting is the immediate free-withdrawal provision. Many MYGAs restrict free withdrawals for the first contract year; this one allows up to 10% of account value starting immediately, as long as at least $2,000 remains in the contract. That is meaningful liquidity for a 5-year product — it means you are not completely locked in from day one, and smaller distributions or required minimum distributions from qualified accounts can generally be handled without touching the surrender charge schedule. Surrender charge waivers are also available for nursing home admission, disability, and unemployment, which provides a modest safety valve for unexpected life events.

This is a five-year commitment. The surrender schedule — 7% in years one through three, 6% in year four, 5% in year five — is steeper than some competing MYGAs in the same duration band. That is the main structural caution. The 7% charge in the first three years means early redemption is genuinely costly. The 10% annual free-withdrawal provision helps, and hardship waivers for nursing home, disability, and unemployment are available. But buyers who have any meaningful probability of needing full access to principal before year five should look at shorter-term alternatives or ladder the position across products with different durations.

There is no market value adjustment on this product, which is a clean feature — some MYGA surrender schedules amplify or reduce based on interest rate movements; this one does not.

There are no base contract fees and no rider fees on Secure Term V. The economics are straightforward: you receive the credited rate, and the carrier earns the spread between what it credits to you and what it earns on its underlying portfolio. There are no hidden charges to account for.

The tradeoffs are structural, not fee-based. The guaranteed rate is fixed, meaning you do not participate in any upside if rates rise during your term. The surrender schedule is on the steeper side for a 5-year product. And the minimum premium of $5,000, while low, means the better rate bands require larger initial commitments — the highest band starts at $1.5 million, which is relevant mostly for institutional or concentrated positions. For most retail buyers, the $100,000 band at 4.40% is the practical top of the rate structure.

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 a mutual insurer — it has no shareholders — which means the company's obligations run to policyholders rather than to equity markets. That structure is relevant for a product whose entire value proposition rests on the carrier's promise to pay. The A++ rating from A.M. Best is the highest rating the agency assigns and is held by a very small number of carriers in the U.S. life insurance market.