American Freedom Classic 5
Highlights
Key Takeaways
- Annuity is aimed at individuals aged between 0 and 89
- American Freedom Classic 5 offers locked-in rates for 5 years
- Market Value Adjustment and early withdrawal charges may apply
- Income options include fixed period payments, lifetime payments or joint annuitant payments
- Beneficiaries can receive financial legacy without probate procedures
- Surviving joint annuitant will receive 50% of the payment for life
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Premium Type
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Single Premium
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Max age Qualified
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89
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Minimum Contribution
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$25,000
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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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12/06/2021 |
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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, Inherited IRA, and NQ Stretch |
Brochure
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Open brochure |
Pros and Cons of American Freedom Classic 5
Pros
- Protected from loss
- Fixed 5-year guarantee term
- Access to penalty free withdrawals
- No upfront fees charged
Cons
- Potential Market Value Adjustment on withdrawals
- Single purchase payment requirement
- Withdrawals subject to a market value adjustment
Issue ages
0-89 (qualified); 0-89 (non-qualified): 0-75 (inherited IRA); 0-75 (inherited non-qualified)
Issue age is defined as owner’s current age upon contract effective date. For joint owners, the older age will be used as the issue age.
Purchase payment
This product accepts a single purchase payment for non-qualified, 403(b) (Traditional and Roth), Traditional IRA, Roth IRA, SEP IRA, SIMPLE IRA, Inherited IRA, inherited non-qualified and 457 plan funds.
- Minimum: $25,000
- Maximum: $1 million for ages 0-85, $500,000 for ages 86+ without prior Home Office approval
During the initial five-year term and any renewal term, a market value adjustment will apply to withdrawals or surrenders.
Penalty-free withdrawals
The following amounts may be withdrawn without deduction of an MVA or early withdrawal charge:
- First contract year: up to 10% of the purchase payment
- Subsequent contract years: up to 10% of the account value as of the most recent contract anniversary
Fixed period: You receive payments for a fixed period of time that you select.
Life or life with a minimum fixed period: You receive payments for life. If you select a minimum fixed period of time and pass away before the end of the period, the remaining payments are paid to the person you designate.
Joint and one-half survivor: Payments are guaranteed for your life and the life of a designated joint annuitant. If you are survived by the joint annuitant, he or she will receive 50% of the payment for life.
Find out if the American Freedom Classic 5 is the right product for you.
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 5 years | 4.95% |
Riders
No Riders for American Freedom Classic 5 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.
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.
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