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The American Pathway Fixed 7 Annuity is a single-premium, deferred annuity that lets you build income for the future. Many people buy tax-deferred fixed annuities because they offer safety of principal, a fixed rate of return, and an income option that transforms the contract balance into a guaranteed income stream for life. 


The American Pathway Fixed 7 Annuity
 is a conservative addition to any portfolio. It is a contract between you and the issuing insurance company. 


The American Pathway Fixed 7 Annuity
 is designed to achieve long-term rather than short-term financial goals. Withdrawing money early can lead to early withdrawal penalties as well as certain tax penalties.

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Issue Agesn  0 – 90 (0 – 85 in New York) owner and annuitant;
     nonqualified annuity transfers and rollovers

n  0 – 70 owner and annuitant: (tax-qualified annuities).
PremiumMinimum: $5,000 (nonqualified), $2,000 (qualified)
Maximum: $1 million
Market Value Adjustment (MVA)(Applies to seven-year option with MVA only. Not available in some states, including New York). A market value adjustment applies in the event of early and/or excess withdrawal during the MVA term period. The adjustment can either increase or decrease the withdrawal amount depending on the current interest rate environment. When interest rates are higher than or slightly below the level at time of purchase, the MVA will result in a deduction. If interest rates are down significantly, a positive MVA will be added. Should a negative adjustment apply, the amount charged will not result in your earning less than the minimum guaranteed rate less any applicable withdrawal charge. MVA does not apply to withdrawals representing free withdrawal amounts, premium guarantee (if applicable), or death benefit. The Treasury Constant Maturity Series reported by the Federal Reserve is used to measure rates.
Penalty-Free Withdrawal PrivilegeAfter 30 days from the contract date, you may take multiple penalty-free withdrawals 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% free withdrawal percentage in a contract year, you may carry over the unused portion to the next contract year up to a maximum of 20% of the annuity value.
One-Year Interest Rate Guarantee OptionThe initial interest rate on the single premium (payment) is guaranteed for one year and 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.)
Three-year Interest Rate Guarantee OptionThe initial interest rate on the single premium is guaranteed for three years and may include an interest enhancement payable in the first three contract years.
Five-Year Interest Rate Option with Market Value Adjustment (MVA)If you select the five-year interest rate guarantee with MVA, you’ll earn a competitive rate on your single premium for five years. With the MVA option, in addition to early withdrawal charge fees, withdrawals above permitted amounts. made during the MVA term will also be subject to a market value adjustment. (The MVA option is not available in some states, including New York.)
Guaranteed Minimum Renewal RateRegardless of future economic conditions, your annuity is guaranteed to renew at or above the minimum interest rate, which is listed in your contract or applicable endorsement(s).



S117, R342-06, R347-06, R384-05, R389-06, R391-06, S117-NY, R342-06-NY, R348-06-NY, R371-05-X, R389-11-NY, R391-06-NY
W5399P7 (03/14)

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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 they are 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 FDIC or NCUA/NCUSIF Insured

 

 

May Lose Value No Bank or Credit Union Guarantee

Not a Deposit Not Insured by any Federal Government Agency