New York Life’s Premium Deposit Account (PDA) Offers 10% First-Year Rate…

New York Life Advanced Markets Network is offering an Enhanced First-Year Rate for the Premium Deposit Account (PDA) for agreements with an effective date between June 1, 2022 and July 31, 2022. Clients who fund a PDA for 4 years or longer during this time will receive an enhanced first-year rate of 10% and the prevailing rate (currently 4.25%) in subsequent years. Each year, the policy’s annual premium is paid from the Account using the deposit and interest earned. The rate is applied to reduce the premiums paid.

The Premium Deposit Account (PDA) will offer a first-year rate of 10% for agreements with an effective date between May 1, 2022, and July 31, 2022. Subsequent years will receive the current PDA rate of 4.25%. To qualify for the enhanced first-year rate, the PDA needs to be funded for at least 4 years or longer. Any PDA funded for less than 4 years will receive the current PDA rate of 4.25%.

The enhanced first-year rate is for new PDA agreements on newly issued CWL/CSWL policies (does not apply to inforce agreements). To receive the 10% promotional rate, clients must pay the first year premium upfront and pre-fund at least 4 years with the PDA. The maximum number of prepaid years remains the same (14 years). In CA, maximum allowable number of prepaid years is 9. In TX, maximum allowable deposit to PDA is $500,000. Early withdrawals are subject to a withdrawal fee in all jurisdictions except TX.