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The American Pathway Immediate Annuity is a single-premium, fixed immediate income annuity issued and guaranteed by AGL or US Life. Guarantees are backed by the claims-paying ability of the issuing insurance company.

Purchasing an 
American Pathway Immediate Annuity

You can purchase an American Pathway Immediate Annuity with one lump-sum payment (a single payment amount).

l After you make the payment, you can start receiving income payments monthly, quarterly,
semiannually or annually. Typically, that means 30 days from the date of deposit.

l If you unexpectedly need access to funds beyond scheduled income payments, you may have the
ability to withdraw up to 100% of the present value of the remaining guaranteed income payments as 

a lump sum using the withdrawal benefit.

With some exceptions, in exchange for higher payments, an income annuity permanently converts principal to a guaranteed income stream.


Download the Product Snapshot
 

Single Premium
Contract
 
Minimum single premium: $10,0001.
Maximum single premium: $1,000,000 without prior home-office approval
With some exceptions, in exchange for higher payments, an income annuity permanently converts principal to a guaranteed income stream.
 
Issue Ages0 – 90
 
Date of First
Payment
Up to 12 months from the date the contract is issued.
 
AnnuitantSingle Life: Provides payments for the life of one annuitant.

Joint and Survivor: Provides payments as long as either annuitant lives; payments to the joint annuitant can be designed to remain level or decrease upon the death of the primary annuitant.

Joint and Contingent: Provides payments as long as either annuitant lives; payments to the survivor can be designed to remain level or decrease upon the death of either annuitant.
Income Payment OptionsThese options are available for single life, joint and survivor, and joint and contingent
  • Lifetime income only
  • Lifetime income with certain period
  • Lifetime income with cash (lump sum) refund
  • Lifetime income with installment refund
     
  • Certain period only: Five – 40 years

The length of the certain period for any applicable option above cannot extend beyond the earlier of IRS limits or age 110. In times of low interest rates, some certain periods may not be available.

Withdrawal Benefit2, 3

After the second contract anniversary, the owner can elect a one-time withdrawal up to 100% of the present value of the remaining guaranteed income payments as a lump sum.

  • Available for nonqualified and Roth IRA contracts that include a single or joint lifetime income payment option with a certain period, cash refund or installment refund2
  • Withdrawal amount must be greater than or equal to $2,500 and will reduce any remaining guaranteed payments by the same percentage amount as the withdrawal
  • At the end of the guaranteed period, lifetime income payments will return to the amount guaranteed prior to the withdrawal
     
Income Payment FrequencyMonthly, quarterly, semiannually or annually.
Payment Adjustment Options
  • 1% to 5% increase on each income start date anniversary (simple or compounded interest, flat dollar increase) 
  • Consumer Price Index (CPI-U) inflation adjustment: adjusted each January 1 after payments begin.
Payee ChoiceThe entire income payment, or a partial amount, can be directed to an alternate party, such as a charity, institution, family member or other individual. The contract owner is still responsible for the income tax on distributions to an alternate payee.
1Minimum allowed: $10,000 single premium and modal payment of at least $100.
2The withdrawal benefit option is not available with lifetime income only, certain period only, or any income payment option that includes an annual payment adjustment. Additional restrictions may apply. 

3The company expects to report the full amount of the lump-sum payment as fully taxable for the year of the payment and to recalculate the exclusion ratio for the remaining income payments. To the extent there are earnings in the contract, an advance payment or withdrawal benefit is taxed as ordinary income. A withdrawal benefit will also reduce any future guaranteed income payments and any death benefit. A withdrawal tax penalty may apply on any taxable income payments or a withdrawal benefit if taken before age 59 1/2. The company makes no representations and provides no advice as to the ultimate tax treatment of any of these annuity transactions, and you may wish to consult with a tax advisor prior to purchasing this contract, taking an advance payment or exercising the withdrawal benefit feature under the contract.


These product specifications are not intended to be all-inclusive of product information.
State variations may apply. Please refer to the contract for complete details.

For more information:
Clients: Call Client Care Center at 1-800-424-4990 .
Selling Agents: Call Internal Wholesaling at 1-888-237-4210 .



01016, 01016N
W5399P3 (12/15)

 

IMMEDIATE AND DEFERRED INCOME
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Annuities are long-term products designed for retirement. Early withdrawals may be subject to withdrawal charges. Withdrawals of taxable amounts are subject to ordinary income tax and, if taken prior to age 59½, an additional 10% federal tax may apply. Tax-qualified contracts such as IRAs are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits, which may include but are not limited to a guaranteed death benefit and income options.

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.

Annuities are 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). All products and features may not be available in all states. The purchase of an annuity is not required for, and is not a term of, the provision of any banking service or activity.

AGL and US Life are members of American International Group, Inc. (AIG). All contract and optional benefit guarantees are backed by the claims-paying ability of the issuing insurance company and are not the obligation or responsibility of AIG.

 

 

Not a deposit | Not insured by any federal government agency

 

 

           May lose value | No bank guarantee | Not FDIC-insured