Resetting the Investment Preservation Rider-FP Series (IPR)

The Investment Preservation Rider-FP Series or IPR for short is designed to protect against decreases in the Accumulation Value of certain New York Life variable annuites due to negative investment performance for a certain period of time (10, 11, 12, 13, 14, 15 or 20 years). The rider is only available at the time of application in jurisdictions where approved.

The policyowner may choose to reset to increase the Guaranteed Amount under the IPR. The following section answers commonly asked questions about the reset process.

For more information on the IPR, including fees, Investment Division restrictions and other rules please refer to the Prospectus.

What type of reset options are available?

There are three types of reset options available:

• Automatic Increase: The Guaranteed Amount will be reset as long as it is higher than the current Guaranteed Amount.
  • Example: if the current Guaranteed Amount is $100,000 it will only reset if the Accumulation Value of the policy is any amount higher than $100,000 as of the Policy Anniversary. If the policy Anniversary Value is $100,000 or less, the Rider will not reset.
• Designated Accumulation Value: The Guaranteed Amount will be reset only if the Accumulation Value reaches a specific dollar amount as designated by the policy owner.
  • Example: if the current Guaranteed Amount is $100,000 and the client chooses $120,000 as the reset amount, the IPR will only reset if the value of the policy is $120,000 or higher as of the Policy Anniversary. Please note that if there is a reset it will be exactly the Policy Anniversary value, not the Designated Value. In this example if the client chose $120,000 as the Designated Accumulation Value and the Policy Anniversary value is exactly $121,500 then the reset will be exactly $121,500. If the Policy Anniversary is less than $120,000 the Rider will not reset.
    Please note that on the form if the client is choosing the Designated Accumulation Value they should fill in the elected policy value. In the example above the client should fill out the form specifying “$120,000.” They should not fill out the form indicating“$20,000”.
• Designated Percentage Increase: The Guaranteed Amount will be reset if it increases by a specific percentage above the current Guaranteed Amount or higher.
  • Example: if the current Guaranteed Amount is $100,000 and the client chooses 20% as the reset percentage, the IPR will only reset if the value of the policy is 20% or more higher as of the Policy Anniversary. Please note that if there is a reset it will be exactly the Policy Anniversary value, not the Designated Percentage. In this example if the client chose 20% as the Designated Percentage and the Policy Anniversary value is 23% higher than the reset will be 23% higher. If the Policy Anniversary is any value that is less than 20% higher the Rider will not reset.

When can I reset the rider?

You can request to reset the rider at any time while the IPR is in effect as long as the Owner (oldest Owner, if the policy is jointly owned) and the Annuitant (oldest Annuitant) are age 75 or younger (for the 10, 11, 12, 13, 14 and 15 year Holding Periods. For the 20 year Holding Period the maximum age to reset the IPR is 70 or younger.

When will the reset take effect?
The reset will take effect on the Policy Anniversary immediately following the date we receive your request to reset the rider.

How do I reset the Rider?

Normally the request must be sent in writing using the IPR Reset Form. It can be sent by mail or fax.

However due to Covid-19 we are temporarily also accepting reset requests over the phone at our Annuity Service Center at 1-800-762-6212. Please note that the caller must have Telephone Authorization to make the request. Please call our Annuity Service Center at the number above for more details.

When must the request be made to take effect on the next Policy Anniversary?

If the request is being made in writing we must receive the request by the policy anniversary date by mail. Please note that the postmark date will not be honored for purposes of determining the received date.

If being sent via fax it must be received before 4:00pm.

If the request is being made by phone the request must be made before 4:00pm.

If a fax or phone request is received after 4:00pm it will not take effect until the NEXT Policy Anniversary, i.e. 365 days later.

Where do I mail or fax the reset form?

Visit our Contact page for mailing addresses and fax information.

Can I choose to cancel the reset request.

Yes. A policyowner may cancel an IPR Reset at any time prior to or within (30) days after Rider Reset Effective Date. If you cancel your request to reset, no change will be made to the IPRs Guaranteed Amount, IPR Holding Period, IPR Holding Period End Date, (if previously reset, the Rider Reset Effective Date), allocation restrictions or, IPR charge, if applicable.

Are there any other implications to resetting the Rider?

Yes, including, but not limited to the following:

• We may set a new charge for the IPR on that Policy Anniversary. The charge for the IPR is subject to change at any time; however, the maximum charge cannot be increased after the rider is issued. See the IPR Reset Form for the table of charges.
• You will be restarting the length of the rider holding period selected at issue. This means that if you selected the 10 year holding period at issue and choose to reset, a new 10 year holding period begins (on the rider reset effective date) before you will be eligible to receive the rider benefit.
• Investment allocation restrictions may change.

The IPR is an optional rider made available for an additional fee. The IPR guarantees all premium payments from losses that were made in the first policy year (less any proportional withdrawals) after the completion of the holding period. The IPR does not protect the account value from dayto-day market fluctuation or against losses that could be realized prior to the completion of the holding period. That means the rider will not provide a benefit if you do not keep the policy for the entire holding period after it is elected or reset.

Variable annuities are long-term financial products designed for retirement purposes. There are fees, guidelines, limitations, restrictions and risks to consider. Withdrawals or surrenders may be subject to ordinary income taxes and, if made prior to age 59½, may be subject to a 10% IRS penalty. Variable annuities are subject to market risk including loss of principal

Please note that the IPR should not be used as the sole criteria to make a decision to purchase a variable annuity. Investors should only consider buying a variable annuity if it makes sense because of the annuity’s combination of features, including the death benefit protection.

This material is being provided for informational purposes only, and was not prepared and is not intended, to address the needs, circumstances and objectives of any individual or group of individuals. New York Life, its affiliates, employees, and agents are not making a recommendation that any of your particular clients purchase any specific products, and do not provide tax or legal advice.

New York Life Premier Variable Annuity - FP Series is 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.

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 (ICC19V-R02 or it may be NC19V-R02);

Investments and insurance products are:

Not FDIC/NCUA Insured • Not Insured by Any Federal Government Agency • Not a Deposit or Other Obligation of, or Guaranteed by, the Bank or Any of Its Affiliates • May Lose Value

For Financial Professional Use