Glossary for NYL Fixed Annuities

During the Initial Guaranteed Period (IGP)¹ the initial interest rate is guaranteed and cannot be changed by either the insurance company or the client. IGP choices will vary by product purchased, e.g. 1, 2, 3, 6, etc. Please note that the length of the Initial Guarantee Period is NOT always the same length as the Surrender Charge Period. When the length of the IGP matches the Surrender Charge Period we refer to this as Rate-for-Term.

1. The interest rate is an effective annual yield based upon a nominal rate which is compounded daily. After the initial interest rate guarantee period, the policy will receive a renewal interest rate that is guaranteed for one year. Rates are subject to change at any time. Renewal rates will never be less than the Guaranteed Minimum Interest Rate (GMIR) declared when the policy was issued. New York Life Fixed Annuities are issued by New York Life Insurance and Annuity Corporation (a Delaware Corporation), a wholly owned subsidiary of New York Life Insurance Company, 51 Madison Ave, New York, NY 10010. All guarantees are backed by the claims-paying ability of the issuer.

Guaranteed Minimum Interest Rate is the minimum interest rate that an insurance company will pay the owner of an annuity after the Initial Guarantee Period expires.

• Primary GMIR: May also be referred to as an “in-surrender GMIR”, this is the guaranteed rate in effect during the surrender charge schedule (if applicable)
• Secondary GMIR: May also be referred to as a “post-surrender GMIR”, in effect after the surrender charge period expires
• Rate-for-Term contracts will not use a Secondary GMIR

Please note that older policies may only have a Primary GMIR. In such cases the Primary GMIR would be in effect for the entire life of the contract once the surrender charge schedule ends.

For further information please contact our Customer Service Center at 800-762-6212.

Before the annuity commencement/maturity date, the Accumulation Value is defined as the premium payment, plus interest credited, less any rider charges, partial withdrawals and any surrender charges that may have already been assessed. After the annuity commencement/maturity date, the Accumulation Value ceases to exist. The Accumulation Value also ceases to exist when it is brought to $0 as the result of the allowable GLWB withdrawals (calculated yearly) and GLWB payments are made as life-only annuity payments going forward.

The rate at which the Income Base grows over time (for up to 10 years). The rate is determined at the time the policy is issued and is compounded each year. A minimum guaranteed growth rate (e.g. 5%) applicable to the Annual Increase/Roll-up Value during the roll-up period, provided under the GLWB rider. If eligible, the Annual Increase/Roll-up Rate is applied on each policy anniversary.

Before the annuity commencement/maturity date, the Accumulation Value is defined as the premium payment, plus interest credited, less any rider charges, partial withdrawals and any surrender charges that may have already been assessed. After the annuity commencement/maturity date, the Accumulation Value ceases to exist. The Accumulation Value also ceases to exist when it is brought to $0 as the result of the allowable GLWB withdrawals (calculated yearly) and GLWB payments are made as life-only annuity payments going forward.

The annualized amount that may be withdrawn without penalty between policy anniversaries, once lifetime withdrawals have begun. Initially, the GLWB Amount is determined at the time of the first lifetime withdrawal by multiplying the applicable GLWB Withdrawal Rate by the Income Base. Future GLWB Amounts are determined on each policy anniversary.

Lifetime withdrawals which are in excess of the GLWB allowable withdrawal amount. These withdrawals reduce the Income Base proportionally by the amount of the excess (excess includes any applicable surrender charges and MVA).

A percentage amount that is multiplied by the greater of the Annual Increase/Roll-up Value or Step-up Value in order to calculate the maximum total dollar amount of guaranteed annual lifetime withdrawals (GLWB amount) that may be made for a given policy year. The GLWB Withdrawal Rate is applicable when lifetime withdrawals begin and does not change after lifetime withdrawals begin.

A rider on a deferred annuity which allows withdrawals based on the Income Base to be taken as income from the Accumulation Value of a policy. The withdrawals – or income payments – are guaranteed to continue for life.

A value, separate from the Accumulation Value, used as a basis for calculating guaranteed income. The income amount is guaranteed by NYLIAC under the terms of the GLWB rider. The Income Base allows for two values, an Annual Increase/Roll-up Value and a Step-up Value. Income is based on the greater of the Annual Increase/Roll-up Value and Step-up Value. Initially, both the Annual Increase/Roll-up Value and Step-up Value are set equal to the premium amount.

A guaranteed increase to the Annual Increase/Roll-up Value that is only applicable once lifetime withdrawals have begun. The Income Base Credit is based on the portion of the annual GLWB amount not withdrawn between policy anniversaries. The difference between the amount withdrawn and the annual GLWB amount is multiplied by a factor (i.e. [50%]) to determine the Income Base Credit for that year. If eligible, the Income Base Credit is applied on each policy anniversary after lifetime withdrawals have begun.

The fixed rate at which the Accumulation Value will grow for the first seven years of the policy. After seven years, the policy will renew annually with a one-year interest rate that is based on the interest rate set by the company.

The second Policy Anniversary (not effective until the end of the second policy year) is the date on which the Modified Premium Guarantee (MPG) / Return of Premium Benefit goes into effect on the Book Value version of the product. The maximum surrender charge on a partial withdrawal or a full surrender taken on or after the Return of Premium Benefit Effective Date will never exceed the total interest credited to the policy.

On each policy anniversary (beginning with the 1st anniversary) and ending on the policy anniversary before the youngest annuitant becomes age 90, if the Accumulation Value is higher than the previous Step-up Value, the Step-up Value is automatically set equal to the Accumulation Value. The Step-Up Base will be utilized if interest rates paid on the contract exceed the current Annual Increase/Roll-up Rate.