American Freedom Aspire 7
Highlights
Key Takeaways
- American Freedom Aspire 7 is a flexible premium deferred annuity targeted for conservative investors.
- Offers yearly increasing interest rate for each purchase payment for seven years.
- Guaranteed retirement income with a choice of different payout options.
- Offers a return of premium guarantee if the contract is surrendered after the third year.
- Allows penalty-free withdrawals up to 10% of the purchase payments during the first contract year.
- Minimum purchase payment is $2,000, with the option for additional payments of the same amount or higher.
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Premium Type
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Flexible Premium
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Max age Qualified
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85
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Minimum Contribution
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$2,000
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Maximum Contribution
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$1,000,000
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Market value adjustment
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Return of premium
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Free withdrawal
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10% |
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Launch date
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11/09/2015 |
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Types of funds
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Non-Qualified, IRA, IRA Rollover, IRA Transfer, TSA 403b, SEP IRA, IRA-Roth, SIMPLE IRA, 457 plan, and NQ Stretch |
Brochure
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Open brochure |
Pros and Cons of American Freedom Aspire 7
Pros
- Increasing interest rate annually for seven years
- Return of premium guarantee after the third year
- Allows penalty-free withdrawals up to 10% during the first year
- Requires low initial purchase payment of $2,000 or more
Cons
- Penalties for early withdrawal or surrender before the third year
- Penalties for excessive withdrawals beyond the 10% free allowance
- Withdrawal amounts may have additional taxes
- Does not allow additional premiums as Periodic Payments.
For more information about submitting New Business applications, please contact the MassMutual Ascend sales desk directly at 1-888-504-7109 option 2
A fixed annuity offers:
- Growth with an increasing interest rate
The American Freedom Aspire 5 offers an increasing interest rate to help build your retirement savings. A base interest rate will be set for each purchase payment you make. Each year during the purchase payment’s five-year term, the interest rate will increase by 0.10%. - Return of premium guarantee
If the unexpected occurs, you can surrender your American Freedom Aspire 5 without penalty after contract year three. You’ll receive your purchase payments, minus withdrawals and any applicable taxes. - Safety of principal
Regardless of market conditions, you won’t lose the money you contribute to your annuity unless you take a withdrawal or surrender your contract during its early withdrawal charge period. - Guaranteed retirement income
When you’re ready to turn the money you’ve accumulated in your annuity into retirement income, you can select from a variety of payout options, including an income stream that will last for the rest of your life.
- Qualified: 0–89
- Non-qualified: 0–89
- Inherited IRA: 0–75
- Inherited non-qualified: 0–75
You can purchase this annuity with an initial purchase payment of $2,000 or more. You can add to your annuity at any time with additional purchase payments of at least $2,000. MassMutual Ascend only allows additional premiums to be added as a Lump Sum, Periodic Payments are not allowed.
Penalty-free withdrawals
During the first contract year, you may withdraw up to 10% of your purchase payments. After the first contract year, 10% of the account value on the most recent contract anniversary may be withdrawn. Amounts withdrawn in excess of the penalty-free withdrawal allowance may be subject to early withdrawal charges.
Find out if the American Freedom Aspire 7 is the right product for you.
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 7 years | 4.6% |
Riders
No Riders for American Freedom Aspire 7 annuity.
Waivers
Terminal Illness
Unavailable in states: MA
Provided that the diagnosis is rendered more than one year after the contract effective date, up to 100% of the account value can be withdrawn without deduction of an early withdrawal charge if the owner or joint owner is diagnosed by a physician as having a terminal illness with a prognosis of 12 months or less. This waiver may be used only once.
Extended Care
Unavailable in states: MA
To help ease the strain of certain unforeseen events, an extended care waiver is available for no additional charge. If the owner is confined to a nursing home or other long-term care facility after the completion of the first contract year for at least 90 consecutive days, early withdrawal charges may be waived on withdrawals up to a full surrender. The nursing home waiver does not include home health care.
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