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New York Life Variable Annuities: A Brief Overview of Features, Benefits and Guidelines

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A variable annuity is a long-term investment vehicle designed to help individuals save for retirement. Investors may purchase a variable annuity to supplement other retirement savings like an employeesponsored retirement plan or Individual Retirement Account (IRA). The chart below outlines the main features and benefits of variable annuities and the guidelines that accompany them.

Since all guarantees, including death benefit payments, are backed by the claims-paying ability of New York Life Insurance and Annuity Corporation (NYLIAC), it is important to know that New York Life and NYLIAC have the highest ratings for financial strength currently awarded to any life insurer by all four major ratings agencies.1

Tax Deferral

Earnings grow on a tax-deferred basis which means more money stays in your account where it may continue to grow and compound.

Tax-free Transfers

You may transfer money between the investment divisions within your variable annuity without having to pay taxes on earnings.2

Wide Variety of Money Managers and Investment Options

Variable annuities offer many professionally-managed investment options from which to choose. In addition to many equity, fixed income, and balanced portfolios, there is also a fixed account which offers a guaranteed rate of interest. While diversification cannot guarantee a profit or protect against loss, it can help manage risk in your portfolio.

Features to Help You Manage Your Investment

Along with 24/7 online account access, there are several features, included at no additional cost, that can help you keep your investment on track. Dollar cost averaging and automatic portfolio rebalancing are available, in addition to automated Required Minimum Distributions (RMDs).3

Investment Protection

The Investment Protection Plan II (IPP II) Rider helps to provide investment protection of your principal and some earnings and may be purchased for an additional cost. In order to receive a benefit under the rider, certain guidelines must be met as described in the IPP II Rider Factsheet and product prospectus. Not available on all products.

Access to Your Money

Each year you may withdraw some of the money in your account without incurring surrender charges. See the product factsheets for more detail regarding your free withdrawal amount. Keep in mind that since these products are intended for long-term retirement savings, withdrawals may be subject to surrender charges, ordinary income taxes and, if made prior to age 59?, a 10% IRS penalty tax.

Option to Elect Guaranteed Income for Life

You may choose from among several options when you are ready to begin receiving income payments from your variable annuity; including systematic monthly, quarterly and annual payments and even the ability to receive income for the rest of your life.

A Death Benefit for Legacy Protection

Provided you do not annuitize your contract, the standard death benefit guarantees that your beneficiary will receive the greater of the policy's accumulation value or the total of all premium payments you made, less any withdrawals. Some products also offer the Annual Death Benefit (ADBR) Rider, for an additional charge, which automatically locks in investment gains each year on your anniversary, up to age 80.4 In order to receive a benefit under the ADBR Rider, certain guidelines must be met as described in the rider factsheet or product prospectus.

g Variable annuities are long-term investment vehicles designed to help you save for retirement. In some situations, they may also be useful in leaving a legacy to your beneficiaries. As with many investments, there are fees, expenses, and risks associated with variable annuity contracts. Annual fees include a Mortality & Expense charge, a policy service charge and surrender charges if applicable, and fund operating expenses.

g All guarantees, including death benefit payments, are dependent on the claims-paying ability of NYLIAC and do not apply to the investment performance of the underlying investment divisions in the variable annuity. Assets in the investment divisions are subject to market risks and may fluctuate in value.

g In the case of withdrawals or surrenders, they may be subject to ordinary income taxes, and if made prior to age 59?, may be subject to a 10% IRS penalty (or a 25% penalty in the case of a withdrawal from a SIMPLE IRA within the first two years).

g Please consult the product and the fund prospectuses for more information, including the product's fees and expenses. Speak with your NYLIFE Securities Registered Representative to help determine if a New York Life Variable Annuity is right for your needs.

This material is authorized for use by the general public only if preceded or accompanied by effective product and fund prospectuses.

Investors are asked to consider the investment objectives, risks, charges and expenses of the investment carefully before investing. The product and the funds' prospectuses contain this and other information about the product and underlying investment options. Please read the prospectuses carefully before investing.

1 Source: Third Party Ratings Report as of 1/25/12. AM Best A++, Fitch AAA, Moody's Aaa, Standard & Poor's AA+

2 Subject to policy limitations, you are permitted 12 free transfers each policy year. NYLIAC reserves the right to charge up to $30 for each additional transfer. Your right to make transfers under the policy is subject to modification if we determine, in our sole opinion, that the exercise of that right will disadvantage or potentially hurt the rights or interests of other policyholders. See the product prospectus for more details.

3 Your policy's Accumulation Value must be $2,500 or more to elect Dollar Cost Averaging or automatic portfolio rebalancing which is available through the Automatic Asset Reallocation feature. The two may not be used in conjunction.

4 In jurisdictions where approved, the rider benefit will not reset after the owner's death or for Grantor Trust owned policies, the death of any grantor. If the owner is not a natural person, or a grantor trust, the rider benefit will no longer reset after the death of the annuitant. In addition, if an ownership change or assignment to the policy is made, the rider may terminate and no reset value will be payable. Please see the prospectus for more details.

In most jurisdictions, policy form numbers are as follows: IPP II Rider is 212-R100; ADBR Rider is 203-305.

New York Life Variable Annuities are issued by New York Life Insurance and Annuity Corporation (A Delaware Corporation), offered by properly-licensed Registered Representatives of NYLIFE Securities LLC (member FINRA/SIPC), a Licensed Insurance Agency, and distributed by NYLIFE Distributors LLC, Member FINRA/SIPC. All are wholly-owned subsidiaries of New York Life Insurance Company, 51 Madison Avenue, New York, NY 10010.

New York Life Insurance Company New York Life Insurance and Annuity Corporation (A Delaware Corporation) 51 Madison Avenue, New York, NY 10010

14627_0712 | SMRU476050CV(Exp.07/9/14)

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