It’s never too soon – or too late – to start building income for the future.
These single-premium, tax-deferred fixed annuities provide the safety of principal, a guaranteed interest rate, and can provide an income stream for life. It’s designed for long-term financial goals, and offers a conservative addition to your retirement savings.
Your fixed annuity offers predictability with a guaranteed initial interest rate for a term selected. In addition, we offer an optional return-of-premium guarantee, which guarantees that the annuity may be returned at any time for an amount equal to the single premium paid, less prior net withdrawals or the withdrawal value (annuity contract value less any applicable withdrawal charges), whichever value is greater.1
In addition to tax-deferred growth and no up-front sales charges or administrative fees, the American Pathway Fixed 5 and Fixed 7 Annuities include an income option that converts the contract balance into a guaranteed income stream for life through annuitization.2
1 Adding this feature will result in a slightly lower initial interest rate than a contract without the feature would receive.
2 Annuitization permanently converts your principal into an income stream. Once annuitization begins, you will no longer have access to your principal as a lump sum.
At the end of the initial interest rate guarantee period, a renewal rate will be declared annually and guaranteed for one year. The rate will not be less than the minimum guaranteed interest rate specified in your contract or applicable endorsement(s).
After 30 days from the contract date, you may take multiple penalty-free withdrawals (withdrawals without withdrawal charge or MVA adjustments) each year not exceeding in total the greater of 1) the accumulated interest earned or 2) up to 15% of the previous anniversary annuity value. If you do not use all of the 15% withdrawal percentage in a contract year, you may carry over the unused portion (up to 5%) to the next contract year increasing the annual withdrawal to 20% of the anniversary annuity value (or the accumulated interest if greater). You can access more than your penalty-free withdrawal amount anytime, however, these withdrawals will incur withdrawal charges for five years (and an MVA, if applicable) for five years from the contract date.
You can guarantee the initial interest rate on your single premium for one, three, or five years. In addition, the rate guaranteed during this period may include an interest rate enhancement or an up-front premium bonus payable on the contract date. (In New York, the only enhancement available is the up-front premium bonus.)
You can also select a five-year interest rate option with a Market Value Adjustment (MVA) or a seven-year interest rate option with a Market Value Adjustment (MVA). These options will provide a slightly higher interest rate; however withdrawals that exceed the penalty-free amount during the first five policy years for the Fixed 5 annuity, or the first seven policy years for the Fixed 7 annuity, will be subject to a market value adjustment in addition to withdrawal charges.
If the five year option with MVA is selected, a market value adjustment applies in the event of early and/or excess withdrawal during the five-year MVA term period. If the seven year option with MVA is selected, a market value adjustment applies in the event of early and/or excess withdrawal during the seven-year MVA term period The adjustment can either increase or decrease the withdrawal amount depending on the current interest rate environment. When interest rates at the time of a withdrawal are higher than the level at time the contract is issued, the MVA will result in a decrease. If interest rates are down, the MVA will increase the withdrawal amount.
Should a negative adjustment apply, the amount charged will not result in your receiving less than the minimum withdrawal amount as defined in your contract or MVA endorsement. MVA does not apply to withdrawals representing penalty-free withdrawal amounts, RMDs, annuitization or death benefit. An external index referenced in your contract is used to measure rates.
The American Pathway Fixed 5 & Fixed 7 annuities offer a conservative path to helping build a secure retirement down the road.
Ask your financial professional for more information about annuity solutions that can help you establish a reliable retirement income source.
Annuities issued by American General Life Insurance Company (AGL), except in New York where issued by The United States Life Insurance Company in the City of New York (US Life).
Products and riders may vary by state or may not be available in all states.
The above insurance companies are members of American International Group, Inc. Contract and optional guarantees are backed by the claims-paying ability of the issuing insurance company.
"AIG" is a marketing name used with products issued by AGL and US Life.
The Company, its distributors and representatives are not authorized to give legal, tax or accounting advice. Applicable laws and regulations are complex and subject to change. Any tax statements in this material are not intended to suggest the avoidance of U.S. federal, state or local tax penalties. For advice concerning your situation, consult your professional attorney, tax advisor or accountant.
ICC16: S225-MWV, R342-06, R347-06, R384-05, R389-06, R391-06
Not FDIC or NCUA/NCUSIF Insured. May Lose Value - No Bank or Credit Union Guarantee - Not a Deposit - Not Insured by any Federal Government Agency