Fixed annuity review and rates

American Pathway NY Fixed 5

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.

Penalty-Free Withdrawal
Privilege After 30 days from the contract date, you may take multiple penalty-free withdrawals (without charges) 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).

Systematic Withdrawals
  • Systematic withdrawals are allowed after 30 days by making a written election
  • $100 minimum amount monthly, quarterly, semiannually or annually
  • Systematic withdrawals may be subject to withdrawal charges if they exceed penalty-free withdrawal amounts
Random Withdrawal
$250 minimum amount. US Life reserves the right to pay the entire withdrawal value and terminate the contract if a withdrawal reduces the contract value to less than $2,000.

More flexibility with optional return-of-premium guarantee
Both the American Pathway Fixed 5 and Fixed 7 annuities offer an optional return-of-premium guarantee at the time of purchase. Adding this feature will slightly lower your initial interest rate. With the return-of-premium guarantee option, if you cancel the annuity contract, you will always receive the greater of: 
  • Your single premium, less prior net withdrawals 
  • The withdrawal value (contract value minus applicable withdrawal charges) 
Note: TSP funds have to be rolled into an IRA.

Interest Rates

Guaranteed Years Surrender Years Guaranteed Yield Current Yield
1 5 2.43% 3.75%
1 5 2.08% 2.8%
1 5 2.33% 3.65%
1 5 1.98% 2.7%
3 5 3.09% 3.95%
3 5 3% 3.8%
3 5 2.46% 2.9%
3 5 2.37% 2.75%
5 5 2.75% 2.75%
5 5 3.55% 3.55%
5 5 3.7% 3.7%
5 5 2.6% 2.6%
The United States Life Insurance Company (AIG)
Founded: 1850
A.M. Best: A
Fitch: A+
S&P: A
Moody's: A2
Carrier details
Free withdrawal
Types of funds
Non-Qualified, 401k, IRA, Spousal IRA, Pension, IRA Rollover, 401a, IRA Transfer, TSA 403b, SEP IRA, IRA-Roth, and TSP