Secure Term MVA Fixed Annuity II (CA Only)
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Key Takeaways
- The minimum premium for Secure Term MVA Fixed Annuity II is $5,000.
- Surrender charges are waived in case of annuitization, death, disability, terminal illness diagnosis, unemployment, or healthcare facility entry.
- The MVA adjusts value of the annuity with surrender or excess withdrawal amounts during surrender-charge-free withdrawal period.
- The annuity comes with two riders for spousal continuance and beneficiary benefits.
- Offers higher than industry average initial interest rate due the inclusion of MVA provision.
- Applications signed and dated prior to rate decrease or increases are subject to older and newer New York Life Fixed Annuity rates respectively.
- Financial reliability assured with high ratings from four major independent rating agencies.
Pros and Cons of Secure Term MVA Fixed Annuity II (CA Only)
Pros
- Imposes no annual policy maintenance fee.
- Enables potential higher initial interest rate with MVA provision.
- In case of death, full annuity values provided to beneficiaries.
- Leverages high financial reliability of NYLIAC.
- Permits 10% withdrawal of accumulated value per year.
- Comes with riders for added benefits relating to spouse and other beneficiaries.
- Provides flexibility in accessing money when urgent needs arise.
Cons
- Does not allow additional premiums.
- Market Value Adjustments could decrease annuity value.
- Withdrawal limits might be restrictive.
- Not available in all states and benefits may vary by jurisdiction.
- Rider charges deducted quarterly.
- Not available for traditional IRA, Roth IRA, Inherited IRA, SEP IRA.
The New York Life Secure Term MVA Fixed Annuity II is a single premium deferred annuity with a market value adjustment (MVA). The minimum initial contribution is $5,000 for qualified and non-qualified money. 10% of the accumulated value as of the previous contract anniversary may be withdrawn beginning in contract year one. Systematic withdrawal is an option.
Premium
Premium
- Minimum initial premium is $5,000.
- Additional premiums are not permitted.
- Policies with premium amounts of $1 million or more require prior New York Life Insurance and Annuity Corporation approval.
Please call your representative for current rates on premium amounts of $1,500,000 or more.
The Free Look Period varies by state. Surrender charges are five, six or seven years in duration and are waived in the event of annuitization, death, disability, diagnosis of a terminal illness, unemployment, or entrance into a health care facility (a state licensed/certified assisted living facility or nursing home).
Market Value Adjustment (MVA)
The New York Life Secure Term MVA Fixed Annuity II comes with a Market Value Adjustment (MVA) provision that allows NYLIAC to offer a potentially higher initial interest rate than a product that does not offer this adjustment. An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender-charge-free withdrawal amount during the surrender charge period. An MVA is not applicable after the surrender charge period is over. The MVA will add or deduct an amount from your annuity, or from the withdrawal amount you receive. The amount of the MVA is determined by a formula that measures the change in the U.S. Treasury Constant Maturity yield, plus the applicable Bloomberg Barclays U.S. Corporate Bond Index from the issue date to the surrender or excess withdrawal date. If the interest rates on which the MVA is based are higher than when you purchased the annuity, the MVA will likely be negative, meaning an additional amount may be deducted from either your annuity or your withdrawal amount. Conversely, if the interest rates on which the MVA is based are lower than when you purchased your annuity, the MVA will likely be positive, meaning money may be added to either your annuity or to your withdrawal amount. The MVA cannot decrease the accumulation value of the policy below the premiums paid (less prior withdrawals and applicable charges and taxes) accumulated at the guaranteed minimum interest rate (GMIR) as stated in your contract. However, the applicable surrender charges may further reduce the accumulation value below the premium paid or the amount you receive when you make a partial withdrawal or fully surrender the policy.
There are two additional riders; the Enhanced Spousal Continuance Rider and the Enhanced Beneficiary Benefit Rider. These riders are not available in NY, NJ, or WA. Each rider may not be available in all jurisdictions. Some states may offer the rider under a different name and benefits may vary. Withdrawals and taxable distributions may be subject to ordinary income tax and if made prior to age 59 1/2, may also be subject to a 10% federal income tax penalty. Early surrender charges and an MVA may also apply. Guarantees based on claims paying ability of insurer. Products / features may not be available in all states. This is an annuity contract issued by an insurance company and not a bank product protected by the FDIC.
To qualify for the old New York Life Fixed Annuity rates, if rates decrease
Applications MUST be signed and dated prior to the date of change. Money and paperwork must be received at the lockbox no later than 30 days after the application signed date. For transfers/exchanges , applications MUST be signed and dated PRIOR to the date of change. Application and paperwork must be received at the Lockbox IN GOOD ORDER no later than 30 days from the application signed date. Money MUST be received at the Lockbox no later than 60 days from application signed date (part 1 for Reg. 60).
The Free Look Period varies by state. Surrender charges are five, six or seven years in duration and are waived in the event of annuitization, death, disability, diagnosis of a terminal illness, unemployment, or entrance into a health care facility (a state licensed/certified assisted living facility or nursing home).
Market Value Adjustment (MVA)
The New York Life Secure Term MVA Fixed Annuity II comes with a Market Value Adjustment (MVA) provision that allows NYLIAC to offer a potentially higher initial interest rate than a product that does not offer this adjustment. An MVA only applies when the policy owner surrenders or makes a withdrawal from the contract that is greater than the surrender-charge-free withdrawal amount during the surrender charge period. An MVA is not applicable after the surrender charge period is over. The MVA will add or deduct an amount from your annuity, or from the withdrawal amount you receive. The amount of the MVA is determined by a formula that measures the change in the U.S. Treasury Constant Maturity yield, plus the applicable Bloomberg Barclays U.S. Corporate Bond Index from the issue date to the surrender or excess withdrawal date. If the interest rates on which the MVA is based are higher than when you purchased the annuity, the MVA will likely be negative, meaning an additional amount may be deducted from either your annuity or your withdrawal amount. Conversely, if the interest rates on which the MVA is based are lower than when you purchased your annuity, the MVA will likely be positive, meaning money may be added to either your annuity or to your withdrawal amount. The MVA cannot decrease the accumulation value of the policy below the premiums paid (less prior withdrawals and applicable charges and taxes) accumulated at the guaranteed minimum interest rate (GMIR) as stated in your contract. However, the applicable surrender charges may further reduce the accumulation value below the premium paid or the amount you receive when you make a partial withdrawal or fully surrender the policy.
There are two additional riders; the Enhanced Spousal Continuance Rider and the Enhanced Beneficiary Benefit Rider. These riders are not available in NY, NJ, or WA. Each rider may not be available in all jurisdictions. Some states may offer the rider under a different name and benefits may vary. Withdrawals and taxable distributions may be subject to ordinary income tax and if made prior to age 59 1/2, may also be subject to a 10% federal income tax penalty. Early surrender charges and an MVA may also apply. Guarantees based on claims paying ability of insurer. Products / features may not be available in all states. This is an annuity contract issued by an insurance company and not a bank product protected by the FDIC.
To qualify for the old New York Life Fixed Annuity rates, if rates decrease
Applications MUST be signed and dated prior to the date of change. Money and paperwork must be received at the lockbox no later than 30 days after the application signed date. For transfers/exchanges , applications MUST be signed and dated PRIOR to the date of change. Application and paperwork must be received at the Lockbox IN GOOD ORDER no later than 30 days from the application signed date. Money MUST be received at the Lockbox no later than 60 days from application signed date (part 1 for Reg. 60).
To qualify for the new New York Life Fixed Annuity rates, if rates increase
Paperwork MUST be signed and dated ON OR AFTER the date of change. Money and paperwork MUST be received in GOOD ORDER at the lockbox within 30 days of the application signed date. For transfers/exchanges , paperwork MUST be signed and dated ON OR AFTER the date of change. Paperwork MUST be received IN GOOD ORDER at the lockbox within 30 days of the application signed date. Money MUST be received at the lockbox no later than 60 days from application signed date (part 1 for Reg. 60).
Note: TSP funds have to be rolled into an IRA.
Paperwork MUST be signed and dated ON OR AFTER the date of change. Money and paperwork MUST be received in GOOD ORDER at the lockbox within 30 days of the application signed date. For transfers/exchanges , paperwork MUST be signed and dated ON OR AFTER the date of change. Paperwork MUST be received IN GOOD ORDER at the lockbox within 30 days of the application signed date. Money MUST be received at the lockbox no later than 60 days from application signed date (part 1 for Reg. 60).
Note: TSP funds have to be rolled into an IRA.
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 3 years | 4.4% |
| 4 years | 4.3% |
| 5 years | 4.2% |
| 6 years | 4.15% |
| 7 years | 4.1% |
Riders
| Name | Inbuilt | Fee |
|---|---|---|
| Enhanced Beneficiary Benefit Rider | Yes | 0.30% annually |