Effective May 1, 2023, New York Life is enhancing optional guarantees in our growth-focused variable annuity.
The New York Life Premier Variable Annuity–FP Series (Premier) is a long-term financial product designed to help investors save for retirement. It offers tax deferral, a wide variety of investment options, and access to features that can help investors manage through virtually any market environment. Now, we’re making these features better than ever.
Our Dollar Cost Averaging Advantage (DCAA) Account will now offer an attractive 7% interest rate, up from 5%.1 By investing the initial premium in a fixed rate account and gradually moving it into equities over a period of six months, this investment program helps retirement investors avoid the pitfalls of market timing.
Actual Yield for the New York Life Premier Variable Annuity–FP Series is 1.98%.
“Actual Yield,” is the amount an investor may expect to earn on a $100,000 premium over the course of the 6-month DCAA program. The DCAA rate applies only to the amount in the account, excluding the funds moved into equities. A dollar-cost averaging program does not guarantee a profit or protect against loss in declining markets.
Our industry-leading accumulation benefit rider,2 the Investment Preservation Rider–FP Series (IPR)3 has been available to protect 100% of an investor’s first-year premium— and potentially some growth—from down markets.
Now the IPR will protect more than the principal investment at no additional cost. Select from holding period options ranging from 10 to 20 years. At the end of the holding period, if the account value is less than the guaranteed amount, New York Life will make up the difference.
Protect the initial investment with the IPR
The rider does not protect the owner’s investment from day-to-day market fluctuations or against losses that could be realized prior to completion of the holding period. Any guarantees are based the claims-paying ability of the issuer.
IPR Guarantee Options (effective May 1, 2023)4
An optional guarantee can help investors pursue a growth strategy with greater optimism, because the true value of Premier is in the additional upside potential of equity investing. IPR investors are free to allocate up to 70% of their initial premium to equities, with no performance cap. Of course, the IPR guarantee is only there if investors need it. With a surrender charge period of 7 years, Premier investors are free to withdraw their full account value and potential earnings even sooner.
Financial Advisors: Call the New York Life Annuities Sales Desk at (888) 474-7725 or fill out the form below to get in touch.
Individual Investors: Please contact your financial advisor directly.
Please carefully consider the investment objectives, risks, charges and expenses of the variable annuity carefully before investing. This and other information can be found in the product and funds prospectuses, which can be obtained from your registered representative. Please read the prospectuses carefully before investing or sending money.
A variable annuity is a long-term financial product used for retirement savings in which all potential interest, dividends, and capital gains accumulate tax-deferred. There are contract limitations, fees, expenses and risks associated with variable annuity contracts. All guarantees, including the death benefit payments, are dependent on the claims-paying ability of New York Life Insurance and Annuity Corporation (NYLIAC) and do not apply to the underlying Investment Divisions in the variable annuity. Withdrawals and surrenders may be taxable transactions subject to ordinary income taxes, and if made prior to age 59½, may be subject to a 10% penalty tax. Variable annuities are subject to market risk including possible loss of principal.
1. The DCAA interest rate is subject to change at any time. These rates only apply to the DCAA in policies in which our patented Level M&E fee structure is selected; the DCAA rate for traditional fee structure policies is 6.00% (Actual yield is 1.70% for Premier). The DCAA rate will be higher than “Actual Yield,” which is the amount an investor may expect to earn on a $100,000 premium over the course of the 6-month DCAA program. The DCAA rate applies only to the amount in the account, excluding the funds moved into equities. Only new premium payments may be allocated to the DCAA Account/ Plan. Money may not be transferred into the DCAA Account/Plan from any of the Investment Divisions or the Fixed Accounts. Money in the DCAA Account/Plan only earn the DCAA Account/Plan interest rates while it is in the account waiting to be transferred into the Investment Divisions. Because the money is periodically transferred out of the DCAA Account/Plan, amounts in the DCAA Account/Plan will not achieve the declared annual effective rate. Once money has been transferred to the Investment Divisions, it is subject to market risks and will fluctuate in value. A program of dollar-cost averaging does not guarantee a profit or protect against losses in declining markets. Investors must consider their financial ability to continue investing systematically during periods of declining unit values. The DCAA rate will be higher than “Actual Yield,” which is the amount an investor may expect to earn on a $100,000 premium over the course of the 6-month DCAA program. The DCAA rate applies only to the amount in the account, excluding the funds moved into equities.
2. LIMRA as of 12/31/2022, referring to sales of variable annuities with an optional Guaranteed Minimum Accumulation Benefit (GMAB) rider.
3. The Investment Preservation Rider–FP Series (IPR) is an optional rider available for an additional fee. The IPR contains principal protection that guarantees a percentage of premium payments made in the first policy year (less proportional withdrawals) after the completion of a holding period. The IPR does not protect the owner’s investment from day-to-day market fluctuations or against losses that could be realized prior to completion of the holding period. The IPR is subject to certain allocation restrictions so not all investment divisions offered under the VA may be available for allocation. With the IPR, the investment option choices include a variety of asset classes and styles. Among the investment options available with the IPR, the maximum target allocation to equity is 70%, so investors may not experience the full risk or return potential of the market.
4. Fees and guarantee percentages as of May 1, 2023 subject to change. Refer to the Rate Sheet Prospectus Supplement for the current IPR charge and Guaranteed Amount percentage for policies with an application signed on or after May 1, 2023.
5. Source: 2023 New York Life internal study assessing equity-holding NYL VA policyholders with and without Accumulation Benefit (AB) riders who were between the ages of 50 and 70, had an initial premium into the policy of $50,000 to $150,000, and who were issued the policy between the years of 2008 and 2011 (allowing a 10-year window to track equity allocations).
This material is general in nature being provided for informational purposes only, and was not prepared, and is not intended, to address the needs, circumstances and objectives of any of individual or groups of individuals. New York Life and its affiliates are not making a recommendation to purchase any specific products. For advice regarding your personal circumstances, you should consult with your own independent financial and tax advisors.
New York Life Variable Annuities are issued by New York Life Insurance and Annuity Corporation (“NYLIAC”), a Delaware Corporation. NYLIFE Distributors LLC, Member FINRA/SIPC, is the wholesale distributor and underwriter for these products. Both NYLIAC and NYLIFE Distributors LLC are wholly-owned subsidiaries of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010. Variable annuities offered through properly licensed registered representatives of a third-party registered broker dealer.
Products and features available and may vary in jurisdictions where approved. In most jurisdictions, the policy and rider form numbers are as follows (state variations may apply): New York Life Premier Variable Annuity–FP Series (ICC18V-P06 or it may be NC18V-P06); Investment Preservation Rider–FP Series (ICC18V-R05 or it may be NC18V-R05) some states may offer this rider under a different name, and benefits may vary.