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
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:
$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
Brochure
Free withdrawal
15%
Types of funds
Non-Qualified, 401k, IRA, Spousal IRA, Pension, IRA Rollover, 401a, IRA Transfer, TSA 403b, SEP IRA, IRA-Roth, and TSP