Provides a Guaranteed Interest Rate At a Time When Many Expect Rates to Remain Flat
NEW YORK, N.Y. – New York Life today announced the introduction of a three-year initial interest rate guarantee and matching three-year surrender charge period on its popular Secure Term MVA Fixed Annuity. This new offering provides a guaranteed 1.15% rate tax-deferred, over the three-year term, compared to the national average of 0.69% for three-year CDs. The three-year term complements the product’s existing five-, six-, seven- and eight-year terms, and is now available to consumers through New York Life’s agency sales force as well as through select third parties.
“The new three-year term available on the Secure Term MVA Fixed Annuity offers clients a highly competitive rate that extends through 2014, a period through which many expect rates to be flat,” said Matthew Grove, vice president in charge of New York Life’s annuity business. “Retirees and investors continue to seek safe opportunities for stable growth, and our Secure Term MVA offers extremely competitive tax-deferred growth.”
According to LIMRA, New York Life was the largest seller of Market Value Adjustment Fixed Annuities in the fourth quarter of 2011, with $134.3 million in sales. In the first quarter of 2012, New York Life exceeded its fourth quarter sales with a company-record-setting $262.1 million in sales.
The Secure Term MVA Fixed Annuity offers the following features:
- multiple initial interest rate guarantee periods, including the new three-year term
- tax-deferred growth
- access to the funds when needed through a surrender-charge-free window during each policy year
- a guaranteed death benefit where beneficiaries receive the policy’s full accumulation value
- the ability to convert accumulated assets to guaranteed lifetime income
The Market Value Adjustment (MVA) provision on the Secure Term MVA Fixed Annuity allows policy owners to receive a potentially higher initial interest rate than other fixed deferred annuities. Optional riders are also available with the Secure Term MVA Fixed Annuity, providing clients with a customizable product designed to meet their unique retirement planning needs.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. New York Life has the highest possible financial strength ratings currently awarded to any life insurer from all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor's (AA+). Headquartered in New York City, New York Life's family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s Web site at www.newyorklife.com for more information.