American Freedom Stars and Stripes 7
Highlights
Key Takeaways
- American Freedom Stars & Stripes 7 offers guaranteed income and protection from loss.
- Interest rate increases by 0.15% in years 2-5.
- 10% of the account value can be withdrawn without an early withdrawal charge after the first year.
- A market value adjustment applies for early contract surrender.
- Death benefits are paid directly to beneficiaries.
- Product is provided by MassMutual Ascend, AM Best rated 'A' for over 40 years.
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Premium Type
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Single Premium
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|---|---|
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Max age Qualified
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88
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Minimum Contribution
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$10,000
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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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|
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Free withdrawal
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10% |
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Launch date
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01/03/2011 |
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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 Stars and Stripes 7
Pros
- Increasing interest rate during initial term
- Option for penalty-free withdrawals
- Inheritance advantage bypassing probate process
- Tax deferred growth potential
Cons
- Market value adjustment during contract surrender
- Early withdrawal charges for first seven years
- Certain benefits may not be available in all states
- Liquidity restrictions and penalties for early withdrawal.
For more information about submitting New Business applications, please contact the MassMutual Ascend sales desk directly at 1-888-504-7109 option 2
Issue Ages
- Inherited non-qualified 0-75
- Non-qualified 0-88
- Inherited IRA 0-75
- Qualified 0-88
- $10,000
- $1 million for ages 0-85
- $500,000 for ages 86+
Market value adjustment
A market value adjustment (MVA) will apply if you surrender your contract during the first seven years. The MVA is calculated by comparing the interest rate environment when you purchase your contract to the environment when you choose to surrender your contract. This can result in an increase to your surrender value during a period of decreasing rates, or a decrease to your surrender value during a period of increasing or steady rates. The MVA will also apply to withdrawals in excess of the 10% free-withdrawal allowance during the first seven contract years.
Find out if the American Freedom Stars and Stripes 7 is the right product for you.
MYGA Interest Rates
| Term |
Rate
Annual percentage yield (APY)
earned over the investment term |
|---|---|
| 7 years | 4.25% |
Riders
No Riders for American Freedom Stars and Stripes 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.
Surrender Window
The MVA and Early withdrawal charges will not apply if renewed for one-year terms or during the last 30 days of a multi-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 may be waived on withdrawals up to a full surrender. The nursing home waiver does not include home health care.
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