American Freedom Classic 3
Highlights
Key Takeaways
- American Freedom Classic 3 is a fixed annuity plan with two three-year terms which allows surrender with no penalties during the last 30 days of each term.
- Initial investment can be from $10,000 up to $1 million, based on age.
- Account value is guaranteed and paid out to beneficiaries upon death of the owner.
- Interest rates are guaranteed for each three-year term and can be adjusted between terms.
- Early withdrawal is penalized except for 10% of the purchase payment/account value annually, and upon the end of the three-year term.
- Extended care and terminal illness waiver riders are included, allowing penalty-free withdrawal if certain conditions are met after the first contract year.
|
Premium Type
|
Single Premium
|
|---|---|
|
Max age Qualified
|
89
|
|
Minimum Contribution
|
$10,000
|
|
Maximum Contribution
|
$1,000,000
|
|
Market value adjustment
|
|
|
Return of premium
|
|
|
Free withdrawal
|
10% |
|
Launch date
|
01/21/2019 |
|
Types of funds
|
Non-Qualified, IRA, IRA Rollover, IRA Transfer, TSA 403b, SEP IRA, IRA-Roth, SIMPLE IRA, 457 plan, Inherited IRA, and NQ Stretch |
Brochure
|
Open brochure |
Pros and Cons of American Freedom Classic 3
Pros
- Guaranteed growth rates and income
- Protection from market conditions and losses
- Opportunity for tax-deferred growth
- Allows penalty-free withdrawal under certain conditions
Cons
- Structured as a long-term product; may not be suitable for short-term investment
- Penalties and market value adjustment apply for early withdrawal
- Initial investment minimum is relatively high at $10,000
- Adjustable interest rates between terms can be unpredictable
For more information about submitting New Business applications, please contact the MassMutual Ascend sales desk directly at 1-888-504-7109 option 2
This product accepts single purchase payments.
Minimum:
- $10,000
- $1 million for ages 0-85,
- $500,000 for ages 86+ without prior Home Office approval.
- Qualified: 0–89
- Non-qualified: 0–89
- Inherited IRA: 0–75
- Inherited non-qualified: 0–75
First-year early withdrawal charge percentages vary by institution. The Guaranteed Minimum feature varies by institution. For detailed product information, log into your account at GAAFI.com or call 888-504-7109, option 2.
Find out if the American Freedom Classic 3 is the right product for you.
Traditional Fixed Annuity Interest Rates
| Surrender Years | First Year Yield | Term Guaranteed Yield | Term Current Yield |
|---|---|---|---|
| 6 | 4.55% | 2.28% | 4.55% |
Riders
No Riders for American Freedom Classic 3 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 or MVA 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.
Surrender Window
Early withdrawal charges will not apply to surrenders during the last 30 days of the initial three year term.
Extended Care
Unavailable in states: MA
To help ease the strain of certain unforeseen events, an extended care waiver rider 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 and MVAs may be waived on withdrawals up to a full surrender. The nursing home waiver does not include home health care.
Request a free quote or talk to our financial expert to get help