What Will We Cover in this Annuity Review?
In this review, we will be discussing the following information regarding the New York Life Annuity lV:
- Product type
- Current rates
- Realistic long-term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you have been thinking about purchasing an annuity because you want to be assured that you will have a guaranteed stream of income later in life – regardless of how long you may live – then the New York Life Secure Term MVA Fixed Annuity lV could be a viable option for you.
That is because this annuity allows you to lock in an attractive interest crediting rate for a set period of time. It also comes with a provision that allows New York Life Insurance and Annuity Corporation to offer a potentially higher initial interest rate (as versus products that do not offer this feature).
The Secure Term MVA IV from New York Life is available to those who reside in all U.S. states other than California, Connecticut, or New York. However, if you are a resident of these states, you could consider the New York Life Secure Term MVA Fixed Annuity II product.
But, before you go full steam ahead with getting this annuity, it is highly recommended that you first have a much more in-depth idea about how the product works – as well as how it may (or may not) be aligned with your specific financial goals. Then, once you are much more familiar with it, you can feel more comfortable with either moving forward with a purchase, or passing on this annuity and moving on to one that is more beneficial to you.
As our life expectancy has gotten longer, deferred fixed annuities have become more popular. This is because these annuities can allow you to receive an ongoing stream of income far into the future – and that income can last for as long as you need it, regardless of how long that may be.
But, before you rush out and make a commitment to purchasing the New York Life Secure Term MVA Annuity lV (or for that matter, any other annuity), it is important that you first have a good understanding of how the annuity works, and how it may or may not fit in with your overall financial needs and goals.
This is where we come in.
Annuity and Retirement Income Planning Advice You Can Trust
If this is the first time that you have visited our website, please allow us to personally welcome you here to AnnuityGator.com. We are a team of annuity experts who are highly focused on offering in-depth, yet non-biased, annuity reviews. We have been doing this for quite some time now – much longer than our competitors – and because of that, we have come to be a trusted source of annuity information.
When looking for details about annuities via the Internet, it’s possible that you have run across a lot of very conflicting opinions about them. This, however, is not really all that surprising. That is because there are many different annuity products available, and many people – both consumers and financial advisors alike – will often have differing thoughts.
But while there are many very good websites out there online that are keyed in on offering annuity products and information, there are some that will attempt to “lure” visitors in by making some pretty bold claims, such as the following:
- Lowest Fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
Although these highlights might sound very enticing, it makes it all that much more important to know whether or not these claims are actually true. If you have come to our website in search of more details about the New York Life Secure Term MVA Fixed Annuity lV, you are definitely in the right place.
Here you will not only find the nice, rosy details about everything good that this annuity offers, but also the factors that may be considered as drawbacks. That is because we feel that knowing the entire picture is really the only way to make a well-informed decision as to whether or not the annuity will be right for you.
If you’ve done any amount of investing in the past, you may notice that insurance and financial advisors will often tend to happily give you all of a product’s benefits, yet will simply gloss over the disadvantages – if they even discuss them at all.
Just to be clear here, we want to state for the record that we feel annuities can provide investors with some very nice benefits. However, this is only the case if the product fits in with your specific short- and long-term goals.
This annuity review was created with the intent of assisting you with better understanding the “fine print” that relates to the New York Life Secure Term MVA Fixed Annuity lV so that you can make a well-informed decision about whether or not it is a good option for you.
So, if you are ready to begin, let’s dive in!
New York Life Secure Term MVA Fixed Annuity lV at a Glance
|Product Name||Secure Term MVA Fixed Annuity lV|
|Issuer||New York Life Insurance Company|
|Type of Product||Deferred Fixed Annuity|
|S&P Rating||AA+ (Very Strong)|
|Phone Number||(800) CALLNYL|
Opening Thoughts on the New York Life Secure Term MVA Fixed Annuity lV
With more than 170 years of service under its belt, New York Life Insurance Company is considered to be one of the largest and most respected insurance companies in the industry today.
In 2016, this insurer brought in more than $1.95 billion in operating earnings, and held in excess of $23.3 billion in surplus and asset valuation reserve, making it a strong source of policyholder payments. That same year, New York Life held roughly $538 billion in assets under management, with over $956 billion in just individual life insurance in force.
The company is proud of its conservative investment philosophy, and it prudently invests the premiums and fees that it collects on life insurance and annuity products for the long-term. In addition, while dividends are never guaranteed, New York Life has consistently paid out dividends to qualifying policyholders for 163 years. In 2017, the amount of these dividend payments (cumulatively) was nearly $1.8 billion. Based on its financial strength and stability, New York Life has consistently received the highest ratings from the insurer rating agencies, including:
- A++ from A.M. Best Company
- AAA from Fitch Ratings
- Aaa from Moody’s Investors Service
- AA+ from Standard & Poor’s
Back in the early 1900s, average life expectancy was only in the neighborhood of 41 years old. Over the past 110 years, though, things have changed. In fact today, many people are living well into their 80s, 90s, and beyond. But, while this can allow you to spend more time enjoying your retirement years, it can be quite difficult to do without enough income.
A fixed deferred annuity can, however, help you to solve for this problem because this type of annuity will continue to pay out an income stream for the remainder of your lifetime, as well as that of a loved one if you choose. Yet, even with these nice features, you really need to know more about how the annuity actually works, and what you may need to give up in return for attaining these guarantees.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. New York Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For more details on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How New York Life Insurance Company Describes the Secure Term MVA Fixed Annuity lV
New York Life Insurance Company describes the Secure Term MVA Fixed Annuity lV as a financial vehicle where you can lock in an interest rate for a set period of time, regardless of what occurs in the market, or with interest rates overall in the economy.
This single premium fixed deferred annuity has interest rate guarantee (and subsequently, surrender) periods to choose from. Your initial interest rate will be determined by the amount of your premium payment when it is received, and the initial interest rate guarantee period selected.
|Premium Amount||3 Year||4 Year||5 Year||6 Year||7 Year|
|$100,000 - $1,499,999||1.90%||2.00%||2.30%||2.40%||2.65%|
|$50,000 - $99,000||1.75%||1.85%||2.15%||2.25%||2.50%|
|$25,000 - $49,999||1.55%||1.65%||1.95%||2.10%||2.35%|
|$5,000 - $24,999||1.30%||1.40%||1.80%||1.90%||2.10%|
Rates effective as of 11/27/2017
At the end of the initial interest rate guarantee period, the policy will receive a new renewal rate each anniversary that is based on the annuity’s accumulation value.
This annuity also comes with a Market Value Adjustment (MVA) provision that allows New York Life Insurance Company to offer potentially higher initial interest rate than a product that does not offer this adjustment.
The contract also has some other features, including a death benefit. Here, in the event of your death prior to converting the funds over into an income stream, your named beneficiary will receive the full accumulation value of the annuity.
There is also a Living Needs Benefit / Unemployment Rider. This is automatically added to the annuity, so there is no additional fee for it. Here, should you require immediate access to the money that is in the annuity contract, the rider can provide you with some flexibility in accessing it.
Two optional riders are also available for purchase if you choose to do so. First, the Enhanced Beneficiary Rider allows your beneficiary (or beneficiaries) to receive additional money that can help with offsetting expenses that arise as the result of your death (such as tax obligations). The benefit on this rider is calculated as a percentage of the earnings in your annuity at your passing (and is also adjusted for any withdrawals).
The Enhanced Spousal Continuance Rider is also included if you elect to go with the Enhanced Beneficiary Benefit Rider. Here, if your spouse is the sole primary beneficiary, then he or she can continue the annuity upon your death, as the new owner. The policy’s value would include the amount that is payable under the Enhanced Beneficiary Benefit Rider.
If you want to read over all of the more intricate details about the New York Life Secure Term MVA Fixed Annuity lV, you can find the product’s fact sheet HERE. There is also additional details, as well as updated rate information, HERE.
How an Insurance or Financial Advisor Might “Pitch” This Annuity
With so many uncertainties in life – especially when it comes to finances – it’s nice to know that there are ways to create a guaranteed lifetime income that will last for as long as you (and possibly also your spouse) need it.
Because of that, it is likely that when an insurance or financial advisor is presenting (or pitching) the New York Life Secure Term MVA Fixed Annuity lV, he or she will key in on the guaranteed interest rate, as well as the guaranteed stream of income you can receive.
However, whenever there are guarantees presented, you may also find that there are various tradeoffs that you must accept in order to attain those benefits. This can be the case with the Secure Term MYV Fixed Annuity lV.
For example, the longer your interest rate guarantee period, the longer you will also be subject to surrender charges on the annuity. So, for instance, a three-year rate guarantee will also have three years of surrender charges. Likewise, seven years of interest rate guarantee will equate to seven years of surrender charges if you should take more than 10% of your contract value out of the annuity.
Also, when it comes to the Living Needs Benefit / Unemployment Rider, there are some hurdles that you must first jump through in order to take advantage of accessing your funds without incurring surrender fees.
For example, you must meet at least one of the following qualifying events:
- You are enrolled and living in a health care facility for 60 consecutive days
- You are diagnosed with a life expectancy of 12 months or less by a licensed physician
- You have a total and permanent disability that prevents you from performing any work for pay or profit for at least 12 consecutive months
- You qualify for or have been receiving, state unemployment benefits for at least 60 consecutive days
What About Any Fees on the New York Life Secure Term MVA Fixed Annuity lV?
Throughout the years, annuities have picked up a reputation for having a lot of charges and fees associated with them. The New York Life Secure Term MVA Fixed Annuity lV is no exception. And, while you won’t be charged an annual policy maintenance fee, or a policy administration fee, don’t let that trick you into thinking that you’re getting away with no fees at all.
In the case of this annuity, for instance, there are various surrender periods. These will actually line up with the length of the interest rate guarantee period that you have selected.
New York Life Secure Term MVA Fixed Annuity lV Surrender Charge Schedule
|Year / Guarantee Period||1||2||3||4||5||6||7|
The Annuity Gator’s End Take on the New York Life Secure Term MVA Fixed Annuity lV
Where it works the best:
The New York Life Secure Term MVA Fixed Annuity IV, while not the right fit for everyone, could be a good option if you are seeking:
- A guaranteed rate of interest for a set period of time
- Safety of principal, regardless of what happens in the market
- A lifetime income that you (as well as your spouse, if applicable) can count on
Where it works the worst:
On the other hand, this annuity might not be a viable option if you:
- Want the potential for higher growth
- Need to access your money during the annuity’s surrender period
- Do not plan to use the lifetime income feature
There are many factors that should ideally be taken into consideration if you are thinking about purchasing an annuity. These should include – but are not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are considering the purchase of a fixed deferred annuity like the New York Life Secure Term MVA Fixed Annuity lV, you can be assured that your money will be safe and that you can count on an income for the remainder of your lifetime – no matter how long that may be.
But there can also still be some questions left unanswered – so the only way to really know if this particular annuity may be right for you is to have it tested. We can perform this for you. So, if this is something that you would like to pursue, just let us know and we will be happy to run these figures for you.
Do You Still Have Any Additional Questions? Did You Notice Any Mistakes in this Review?
While we realize that this annuity review was a bit on the long side, our feeling is that we would rather provide you with a lot of details than with not enough. This is really the only way to get the full picture. Therefore, if you did find that this annuity review was beneficial to you, then please feel free to forward it on and to share it with anyone else that you think may benefit from it as well.
In addition, we also know that details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know that as well and we will get on the revisions right away.
Are there any other annuities that you would like to see information about?
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