American Pathway Annuity

American Pathway Annuity

A. The American Pathway Fixed 5 (One-Year) without ROP annuity

B. Issued by American General Life Insurance Company

C. Deferred traditional fixed annuity

When it comes to planning for a secure financial future, the American Pathway Annuity is a trusted option. Offered by the reputable American General Life Insurance Company, this deferred traditional fixed annuity provides individuals with a reliable way to protect their investments and ensure a steady income stream for the years to come.

Premium Banded Product: Tailored to Your Needs

A. Interest rate variability based on the premium amount

Rate Details

a. Highest first-year yield: 5.00% (including bonuses)

b. Premium amounts: $100,000 – $1,000,000

c. Highest 5-year term current annual yield: 3.75% (including bonuses)

  1. d. Premium amounts: $100,000 – $1,000,000

The American Pathway Annuity offers interest rate variability based on your premium amount. This means that the more you invest, the higher your potential returns. With the highest first year yield of 5.00%, including bonuses, and a current annual yield of 3.75% for the highest 5-year term, this annuity ensures competitive returns on your investment.

Penalty-Free Withdrawal Window: Flexibility at Your Fingertips

A. Full penalty-free withdrawal window after 5 years

B. Surrender penalties during a specified period

C. Partial access allowed on a penalty-free basis

  1. First contract year: Interest-only withdrawals
  2. Second contract year onwards: Up to 15% of contract value can be withdrawn annually without penalty

Flexibility is a key feature of the American Pathway Annuity. After a period of 5 years, you gain full access to penalty-free withdrawals. However, during the initial years, surrender penalties may apply. Nevertheless, even during this period, you have the option to make interest-only withdrawals in the first contract year. Starting from the second contract year onwards, you can withdraw up to 15% of the contract value annually without incurring any penalties.

Death Benefit Provision: Protecting Your Loved Ones

A. Withdrawal penalties waived upon death

B. Named beneficiary(ies) receive a death benefit equal to the full accumulation value

C. Lump sum or annuitization option available for beneficiaries

The American Pathway Annuity ensures that your loved ones are protected in the event of your passing. In the unfortunate event of your death, withdrawal penalties are waived, and your named beneficiary(ies) will receive a death benefit equal to the full accumulation value of the annuity. This provides peace of mind, knowing that your family will be financially secure even in your absence. They have the option to receive the benefit as a lump sum or choose annuitization for a steady income stream.

Additional Penalty Waivers: Flexibility When You Need It

A. Penalty-Free Withdrawal Provisions

  1. Details found in the product brochure and disclosure

Penalty waivers based on ADL (Activities of Daily Living), death, extended care, and terminal illness

  1. B. State Variations
  2. State-specific variations exist, refer to product disclosure for details

In addition to the penalty-free withdrawal window, the American Pathway Annuity provides further flexibility through penalty waivers. These waivers are based on various circumstances such as Activities of Daily Living (ADL), death, extended care, and terminal illness. The specific details can be found in the product brochure and disclosure. It’s important to note that there may be state-specific variations, so it’s advisable

Company Information: Trustworthy and Established

A. American General Life Insurance Company

  1. Founded in 1960
  2. Rated “A” by A.M. Best
  3. Total assets over $146.8 billion

When considering financial products, it’s crucial to choose a reliable and established company. The American Pathway Annuity is issued by American General Life Insurance Company, a reputable institution founded in 1960. With an “A” rating by A.M. Best, you can have confidence in the company’s financial stability. With total assets exceeding $146.8 billion, American General Life Insurance Company is well-positioned to protect and grow your investment.

Rate Details: Competitive and Transparent

A. Effective Date: Apr 24th, 2023

B. Premium Amount: $100,000 – $1,000,000 High-Band

  1. First-Year Yield: 5.00%

5-Year Term Current Annual Yield: 3.75%

  1. C. Premium Amount: $2,000 – $99,999 Low-Band
  2. First-Year Yield: 3.31%
  3. 5-Year Term Current Annual Yield: 2.90%

Understanding the rates associated with the American Pathway Annuity is essential for making an informed decision. As of April 24th, 2023, the annuity offers a first-year yield of 5.00% for premium amounts ranging from $100,000 to $1,000,000 in the high-band category. The 5-year term current annual yield for the same premium range is 3.75%. For premium amounts ranging from $2,000 to $99,999 in the low-band category, the first-year yield is 3.31%, and the 5-year term current annual yield is 2.90%. These rates ensure that your investment remains competitive and transparent.

Policy Details: Tailored to Your Needs

A. Minimum Premium

  1. Non-Qualified: $5,000

Qualified: $2,000

  1. B. Maximum Premium
  2. Non-Qualified: $1,000,000

Qualified: $1,000,000

  1. C. Maximum Issue Age
  2. Non-Qualified: 90

Qualified: 90

D. Rate Lock on Transfers: 60 days

E. Subject to Market Value Adjustment (MVA): No

F. Death Benefit: Accumulation Value

  1. G. Income Rider Available: No

To cater to individual needs, the American Pathway Annuity offers flexibility in policy details. The minimum premium for the annuity is $5,000 for non-qualified contracts and $2,000 for qualified contracts. The maximum premium allowed is $1,000,000 for both non-qualified and qualified contracts. The annuity is available for individuals up to the age of 90. Transfers into the annuity are subject to a rate lock period of 60 days, ensuring stability during the transfer process. The annuity does not have a Market Value Adjustment (MVA), providing peace of mind in a volatile market

Posted on May 2023