Secure Term V Fixed Annuity 6-Year review

Yes, for the right buyer. If your goal is guaranteed fixed growth for six years and you want a carrier whose financial stability is essentially beyond question, this is a solid product. The rate bands matter though — buyers depositing under $25,000 will see noticeably lower rates than those depositing $100,000 or more, so the competitive picture varies significantly depending on deposit size. It is not a fit for anyone who might need more than 10% of their balance before the six years are up.

The primary reason to choose Secure Term V over a competing MYGA from a lesser-known carrier is the New York Life name and its A++ rating. That matters most to buyers who are less concerned about squeezing the last basis point of yield and more concerned about the counterparty they're relying on for six years. The secondary reason is simplicity: this is a fully fixed product with one crediting method, a clean surrender schedule, and no ongoing decisions about index allocations or rider elections. For savers who want certainty without complexity, that is a genuine advantage.

I think Secure Term V 6-Year works best for conservative savers in their mid-50s through early 70s who have a pool of money they can genuinely leave untouched for six years — typically non-qualified savings, an IRA rollover, or an inherited IRA looking for a predictable drawdown structure. It is particularly well-suited for someone who has shopped MYGA rates and decided that carrier financial strength is worth some yield concession. The broad issue age range (including non-qualified buyers from 0 to 85 and qualified buyers from 18 to 85) also makes this available in situations where other MYGAs have tighter age restrictions.

It is less appealing for buyers whose primary concern is maximizing the guaranteed rate regardless of carrier, buyers who expect to need principal access beyond the 10% free withdrawal, or buyers who want a product with income-rider features built in.

You are buying a contractual promise from New York Life Insurance and Annuity Corporation to credit a fixed interest rate on your deposit for six years, with your full account value guaranteed at death and a 10% annual free withdrawal as your only meaningful liquidity valve. There is no indexing, no participation rate, no cap — just a fixed rate applied annually for the term. The value proposition is certainty: you know what your money will earn from day one, and you know the carrier making that promise is one of the most financially sound life insurers in the country.

Secure Term V credits interest at a fixed annual rate that is set at contract issue and guaranteed for the full six-year surrender period. The rate is tiered by deposit amount: as of May 2026, the low band (below $25,000) was 4.10%, with steps up to 4.30% at $25,000, 4.50% at $50,000, 4.75% at $100,000, and 4.75% at $1,500,000. The rate you lock in at issue is the rate you earn for six years — there are no renewal decisions, no crediting strategy elections, and no index benchmarks to monitor.

Interest compounds annually inside the contract. Free withdrawals of up to 10% of account value are available immediately, provided the account balance stays above $2,000 after the withdrawal. That free-withdrawal provision is more favorable than some MYGAs, which require you to wait until year two before accessing anything penalty-free.

The secondary feature worth noting here is the optional Performance-Triggered Interest Opportunity Rider, available in two versions. Option 1 reduces your initial rate by 0.15% annually; Option 2 reduces it by 0.25% annually. In exchange, these riders credit additional interest when a benchmark index meets certain performance conditions. I think most buyers considering a MYGA for principal protection purposes should weigh carefully whether adding an index-linked trigger makes sense — you're paying a rate reduction up front for a conditional upside that conflicts somewhat with the simplicity that makes a MYGA appealing in the first place. For buyers who specifically want to preserve some index upside exposure while keeping a fixed floor, it is worth asking your advisor to walk through the exact terms. For buyers who want pure rate certainty, the base contract without any rider is the cleaner choice.

The 10% free-withdrawal provision available immediately at issue is a meaningful liquidity feature for a MYGA. It means that in year one, you can access up to 10% of your account value without penalty, as long as you leave at least $2,000 in the contract. Most MYGAs allow free withdrawals, but some restrict them to post-year-one access only — here, the immediate availability is a genuine advantage.

Beyond the 10% free amount, early access is expensive. The surrender schedule holds at 7% for the first three contract years, then steps down to 6% in year four, 5% in year five, and 4% in year six. Note that even in the final contract year, a 4% penalty applies to amounts above the free-withdrawal provision. There is no market value adjustment (MVA) on this product — the spec shows that field as low-confidence, but the brochure does not indicate one applies, which simplifies the surrender math.

Buyers using this as an IRA or inherited IRA should also note that the issue-age limit extends to 85, and required minimum distributions should be factored into the 10% free-withdrawal planning. If RMDs on the contract would routinely exceed 10% of account value, that should be evaluated before committing to this term.

The base contract carries no explicit annual fee or mortality and expense charge — a clean structure typical of MYGAs. The only explicit fee exposure comes from the optional Performance-Triggered Interest Opportunity Rider, which costs either 0.15% or 0.25% per year as a reduction to your guaranteed base rate. Those riders are optional and can simply be declined.

The main structural tradeoff is yield versus carrier quality. New York Life's A++ rating commands a premium in the market, and the Secure Term V rates reflect that — they are competitive for the carrier tier but not always the highest available in the MYGA market. Buyers who shop rates first and carrier ratings second may find better nominal yields elsewhere. That is an acceptable trade for buyers who prioritize safety of principal and institutional durability.

The rate-banding structure also creates a notable difference between small and large depositors. A buyer putting in $5,000 gets 65 basis points less per year than a buyer putting in $100,000 — over a six-year term that is a meaningful compounding difference, and worth shopping carefully if you're at or near a band threshold.

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 and oldest mutual life insurers in the United States, and its annuity subsidiary carries the top financial strength rating A.M. Best assigns. For a fixed annuity buyer relying on a contractual promise over a multi-year term, that carrier standing is a real factor — not just a marketing credential.