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 the term selected. In addition, you may select an optional return-of-premium guarantee at the time of purchase. If you select the return-of-premium guarantee,1 the annuity may be returned at any time for an amount equal to the greater of the single premium paid, less prior net withdrawals, or the contract value minus any applicable withdrawal charges or market value adjustment (MVA), or the minimum withdrawal value. In New York, the annuity may be returned at any time for the greater of the single premium paid, less prior net withdrawals or the withdrawal value (annuity value less any applicable withdrawal charges or MVA).
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.
After 30 days from the contract date, you may take multiple penalty-free withdrawals (without charges or MVA adjustments, if applicable) each year not exceeding in total the greater of 1) the accumulated interest earned or 2) up to 15% of the previous anniversary contract 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 contract value (or the accumulated interest if greater).
You can guarantee the initial interest rate on your single premium for one, three, five or seven years depending on product.
You can also select a five-year or seven-year interest rate option with 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, or the first seven policy years for the Fixed 7, will be subject to a market value adjustment (if applicable) 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 the time the contract is issued, the MVA will result in a decrease. If interest rates are down, the MVA will increase the withdrawal amount.
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 and 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 are long-term retirement saving vehicles.
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). Guarantees are backed by the claims-paying ability of the issuing insurance company.
AGL and US Life are members of American International Group, Inc.
Retirement plans and accounts such as 403(b)s, IRAs, 401(k)s, etc., can be tax deferred regardless of whether or not they are funded with an annuity. Investment in an annuity within a plan does not provide additional tax-deferred treatment of earnings. However, annuities do provide other features and benefits.
This information is general in nature, may be subject to change and does not constitute legal, tax or accounting advice from any company, its employees, financial professionals or other representatives. 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.
American International Group, Inc. (AIG) is a leading global insurance organization. Founded in 1919, today AIG member companies provide a wide range of property casualty insurance, life insurance, retirement products and other financial services to customers in more than 80 countries and jurisdictions.
May not be available in all states and product features may vary by state. Please refer to the contract.
Policy #s: ICC17:AG-SPDA (6/17), USL-SPDA-M (7/17), USL-SPDA-M-DP-AP57
Rider #s: ICC17:AGE-8049 (6/17), ICC17: AGE-8048 (6/17); ICC17:AGE-8050 (6/17); ICC17: R384; ICC17: AGE-8062 (12/17), R348-06-NY, R342-06-NY, R389-11-NY, USLE-8018 (7/17)
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