American Freedom Classic 3
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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.
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
This fixed annuity offers two three-year terms with the option to surrender without penalty during the last 30 days of the initial three-year term.
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:
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
Maximum:
- $1 million for ages 0-85,
- $500,000 for ages 86+ without prior Home Office approval.
Issue ages
- Qualified: 0–89
- Non-qualified: 0–89
- Inherited IRA: 0–75
- Inherited non-qualified: 0–75
Upon death of owner, beneficiaries receive the account value.
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.
Traditional Fixed Annuity Interest Rates
| Surrender Years | First Year Yield | Term Guaranteed Yield | Term Current Yield |
|---|---|---|---|
| 6 | 4.55% | 2.28% | 4.55% |