How can you ensure that the legacy you've built for your heirs will go to them - and not to Uncle Sam to pay estate taxes?

There is an affordable way to provide the liquidity needed to protect your estate - and your heirs - with the advantage of investment and payment flexibility.

THE THREAT OF ESTATE TAXES

As a couple, if your estate is worth $1.35 million¹ or more, a portion of your assets could go towards the payment of estate taxes - reducing the amount that your heirs could receive. And if you estate is worth substantially more, your heirs could lose 55% of your assets. Because payment of estate taxes is due within nine months of death, your heirs may be forced to sell non-liquid assets for less than their worth in order to pay their tax bill.

With proper planning, this can be prevented. Carefully designed strategies can help protect your estate from taxation and ensure that liquid assets will be available to pay the taxes and settlement costs your heirs will face. Life insurance can be a valuable component of these strategies because it can provide heirs with the funds they need.

¹ 2000 Unified Exemption equivalent for a married couple. This is scheduled to increase each year to a total of $2.0 million in 2006.

INTRODUCING
NYLIAC SURVIVORSHIP VARIABLE UNIVERSAL LIFE INSURANCE
New York Life Insurance and Annuity Corporation (NYLIAC) offers Survivorship Variable Universal Life (SVUL) — an insurance policy that covers two individuals and pays a life insurance benefit after the death of the last surviving insured. Because SVUL is a variable life insurance product, it also offers you the opportunity to allocate your premium payments among a number of investment options, including stock and bond Investment Divisions and a Fixed Account with a guaranteed interest rate. After one insured dies, the policyowner continues to have access to the policy's cash value — which grows tax-deferred — as well as any additional proceeds received from one of the optional "first-to-die" riders (if it has been selected). After the death of the last surviving insured, the life insurance benefit can provide the funds that beneficiaries need to pay estate taxes and settlement costs.

HOW CAN SVUL HELP MEET YOUR NEEDS?

• Estate Tax Liquidity - SVUL may help prevent the need to sell valuable assets, such as a home or family business, by providing heirs with liquid assets to pay estate taxes and settlement costs.


• Survivorship - Through an optional first-to-die rider, the policy can help provide financial support to dependents with special needs, a surviving spouse, and/or children.


• Facilitating Irrevocable Life Insurance Trust - Establishment of a trust and planned gifting can reduce estate tax liability and create an income tax-free inheritance for beneficiaries. ²
• Charitable Giving - SVUL can facilitate the desire to provide continued support to a charity by naming it as the beneficiary of the policy, or as the beneficiary of the level first-to-die rider (if selected)
.

^{2 Based on current tax law which is subject to change. Please consult your tax and legal advisors as to any changes in, or applications of, current law.}

SVUL AS BUSINESS PROTECTION AND MORE
SVUL can be more than just a funding vehicle for an estate. Your policy not only helps protect your family, but may be used to protect your business as well.

• Business Continuation - Using additional proceeds provided by an SVUL level first-to-die rider (if selected), the policy may provide the assets necessary for one business partner to purchase another's business interests when that partner dies.


• Executive Benefit - An employer can offer key executives SVUL as a fringe benefit, protecting an executive and his or her spouse while having minimal effect on the company's current cash flow and net earnings.


• Equalizing Inheritance - If one heir receives a large, non-liquid asset, such as a home or family business, SVUL may provide a comparable legacy for other heirs through the policy's life insurance benefit.

MORE FLEXIBILITY AND TAX-DEFERRED EARNINGS
With SVUL, you determine the frequency and amount of your premium payments.³ SVUL can help keep the cost of life insurance coverage within your budget, and allows you to vary the amount of coverage ⁴ as your needs change.

SVUL gives you estate planning choices. For example, as a couple, you may be able to gift money to your heirs so that they can purchase an SVUL policy on your lives. Your gifting can reduce the value of your estate — and your estate tax liability.

If your goal is to accumulate as much cash value as you can for the future, you may be able to make additional premium payments ⁵ to help increase your policy's cash value. When you don't have as much cash readily available, you may be able to reduce or skip some of your premium payments.

The earnings that are possible with SVUL's Investment Divisions grow tax-deferred, and can help your money accumulate faster than it would in a taxable investment with a similar rate of return. The potential cash value accumulation of an SVUL insurance policy may enable you to increase your coverage, and/or have more money available throughout your lifetime.

Keep in mind, charges and expenses associated with variable life insurance may affect investment growth. These include a sales expense charge, state and Federal tax charges (if applicable), monthly contract charge, charges for cost of insurance, charge per $1,000 of initial face amount, mortality and expense risk charge, administrative charge, fund expenses and charges for any riders. In addition, a surrender charge may be assessed on certain policy changes. Refer to the NYLIAC SVUL Prospectus, which you can get from your Registered Representative, for more details regarding these charges and expenses.

^{3 Subject to minimums. The cash value must be sufficient to pay the policy's monthly charges. If the costs of these charges are met, you may decrease or skip premium payments. See the NYLIAC Survivorship Variable Universal Life Prospectus for details.
4 Increases in a policy's face amount may be subject to underwriting.
5 Unplanned premium payments may be made at any time provided the policy has not violated Section 7702 of the Internal Revenue Code (IRC). Section 7702 of the IRC requires that, in order for the policy to qualify as life insurance, the life insurance benefit must be a minimum percentage of the cash value. Therefore, if payment of an unplanned premium will cause the life insurance benefit of your policy to increase more than the cash value will increase, both insureds must be living, and we will require proof of insurability before accepting that payment and applying it to your policy.}

ADDITIONAL PROTECTION WITH SPECIAL RIDERS
Some of the key options available with a NYLIAC SVUL policy are its "first-to-die" riders. These optional riders can provide valuable benefits upon the death of the first of either insured.

• Level First-to-Die Term Rider (FTD) - Upon the first death of either insured, this rider provides a level term insurance death benefit to the beneficiary.
• First-to-Die Monthly Deduction Waiver (FTDMDW) - Upon the first death of either insured, this rider waives the policy's monthly deductions for the base policy and any riders for the remainder of the policy.

First-to-die riders are helpful when money is needed for dependent needs or debt repayment, and/or when future premium payment obligations or other expenses - such as monthly policy charges - are due. This could be financially difficult after the loss of income caused by the death of one of the insureds.

PROFESSIONAL FUND MANAGEMENT
SVUL's Investment Divisions are managed by professional advisors with proven track records. The portfolio managers include:

• American Century Investment Management, Inc.
• Calvert Asset Management Company, Inc. and NCM Capital Management, Inc.
• The Dreyfus Corporation
• Eagle Asset Management, Inc.
• Fidelity Management & Research Company
• Fred Alger Management, Inc.
• Janus Capital Corporation
• MacKay Shields LLC
• New York Life Investment Management LLC
• Morgan Stanley Asset Management
• T. Rowe Price Associates, Inc.

The Fixed Account is managed by New York Life Insurance and Annuity Corporation - and backed by the financial strength and stability of this New York Life subsidiary.

A VARIETY OF FEATURES
SVUL has features that can help you manage your investment allocation. These include:

• Expense Allocation - With Expense Allocation, you have the choice of how to allocate the policy expenses. You may instruct NYLIAC, at the time of the application and any time thereafter, to have the expenses deducted from either the MainStay VP Cash Management Investment Division, the Fixed Account or a combination of both. If you choose not to indicate how you would like the expenses allocated, these charges will be deducted proportionately from each of the Investment Divisions and/or any unloaned amount in the Fixed Account.
• Automatic Asset Reallocation - NYLIAC will automatically reallocate the assets among the Investment Divisions to maintain a pre-determined percentage invested in the Investment Divisions you have selected. ⁶ (You may choose to have reallocations made quarterly, semi-annually or annually.) The cash value of the Separate Account must be a least $2,500 in order to elect this option - $2,000 thereafter.
• Dollar Cost Averaging - With Dollar Cost Averaging, there's no need for you to "time the market." You can purchase securities at regular intervals (monthly, quarterly, semi-annually or annually) in fixed dollar amounts so that the cost of the shares is averaged over time and over various market cycles.⁷ This feature does not assure a profit nor does it protect against loss in a declining market. Since it involves continuous investing regardless of price levels, investors should consider their financial ability to continue to make purchases during periods of low price levels. A policy cash value of at least $2,500 is required in order to elect this option - $2,000 thereafter.
• Interest Sweep - This feature allows you to periodically transfer the interest earned in the Fixed Account to any of the Investment Divisions. You may specify the starting date, ⁸ frequency of transfers (monthly, quarterly, semi-annually or annually), and the percentages to be transferred to each Investment Division. The cash value of the Fixed Account must be at least $2,500 in order to elect this option - $2,000 thereafter.

SERVICE AT YOUR FINGERTIPS, WITH OUR TOLL-FREE NUMBER.

Our Registered Representatives are always ready to help

A convenient toll-free number allows you to transfer funds between Investment Divisions or get up-to-the-minute information about your policy. You'll also receive statements on a quarterly basis that provide you with recent activity on your policy.

Our Registered Representatives are always ready to help you customize your policy and answer any questions you may have. Ask to have a Registered Representative speak with you to see how NYLIAC Survivorship Variable Universal Life can help secure your financial future.

For complete information on all product features, obtain a NYLIAC Survivorship Variable Universal Life Prospectus from your NYLIFE Securities Inc. Registered Representative or call 1-800-598-2019 to request a copy by mail. Please read the prospectus carefully, including charges and expenses, before you invest or send money.

Issuer: New York Life Insurance and Annuity Corporation (A Delaware Corporation)
Distributor: NYLIFE Distributors LLC
(Member FINRA)
51 Madison Avenue
New York, NY 10010

^{6 Dollar Cost Averaging cannot be used in conjunction with Automatic Asset Reallocation.
7 Automatic Asset Reallocation cannot be used in conjunction with Dollar Cost Averaging.
8 You may not start Interest Sweep on the 29th, 30th or 31st of a month.}

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