American life insurance American classic3 myga annuity

American life insurance American classic3 myga annuity

The American Classic 3 MYGA Annuity is a fixed deferred annuity offered by American Life & Security Corp.. Designed for individuals seeking a secure and predictable investment vehicle, this annuity provides a guaranteed interest rate over a three-year term, making it an attractive option for those aiming to grow their retirement savings with minimal risk.

Table of Contents

Key Features of the American Classic 3 MYGA Annuity

Guaranteed Interest Rate: The annuity offers a fixed interest rate of 5.21% per annum for the three-year term. annuityadvantage.com
Tax-Deferred Growth: Earnings accumulate on a tax-deferred basis, meaning you won’t pay taxes on the interest until you withdraw funds.
Loyalty Bonus: A 0.45% bonus is awarded at the end of the guarantee period if no withdrawals, other than Required Minimum Distributions (RMDs), are taken during the term. annuityadvantage.com
Penalty-Free Withdrawals: Starting in the second contract year, you can withdraw up to 10% of the contract value annually without incurring surrender charges. annuityadvantage.com
Death Benefit: In the event of the policyholder’s death during the term, beneficiaries receive the full accumulation value without surrender charges. annuityadvantage.com

American life insurance American classic3 myga annuity

Benefits of Choosing the American Classic 3 MYGA Annuity

Low Risk: With a fixed interest rate, your investment is insulated from market volatility.
Predictable Returns: Know exactly how much your investment will grow over the three-year term.
Tax Advantages: Tax-deferred growth allows your investment to compound more effectively.
Flexibility: Options for penalty-free withdrawals and a loyalty bonus provide both liquidity and incentives for long-term investment.

Considerations Before Investing

Surrender Charges: Withdrawals exceeding the penalty-free amount during the surrender charge period may incur fees.
Market Value Adjustment (MVA): An MVA may apply to withdrawals above the penalty-free amount, potentially increasing or decreasing the surrender value based on interest rate fluctuations.
Availability: As of July 2023, this product is not available in certain states. annuityadvantage.com

Is the American Classic 3 MYGA Annuity Right for You?

This annuity is suitable for individuals seeking a conservative investment with guaranteed returns over a short-term horizon. It’s particularly beneficial for those looking to diversify their retirement portfolio with a low-risk product that offers both growth and liquidity options.

For more detailed information, including state availability and specific terms, it’s advisable to consult with a financial advisor or contact American Life & Security Corp. directly.

Read more about On Insurance!