American Century SPDA 5
Current Fixed Rate
5.65%
The American Century SPDA 5 is a fixed-deferred annuity with a five-year rate guarantee. After five years, owners can withdraw, reinvest, or maintain their annuity policy with American Century. This policy does not automatically renew. If no action is taken, the funds remain completely liquid at a declared minimum guaranteed rate.
The SPDA (Single Premium Deferred Annuity) offers different liquidity options. The rate quoted above includes free interest withdrawals only. A 10% free withdrawal rider can be added, reducing the annual rate by .05%.
Alternatively, owners can waive the free withdrawal riders for higher (non-guaranteed) rates (5.70-5.75%). When withdrawal riders are waived, American Century can reduce the interest rate on the owner’s yearly policy anniversary. However, if the interest rate decreases below the initial guaranteed rate (5.60%), all funds are available for full withdrawal without surrender penalties or MVA charges.
This policy has no surrender penalties at death. A spouse can continue the policy if named as the sole beneficiary. Penalty-free annuitizations are allowed after 12 months. Both qualified and non-qualified funds are accepted. This policy is IRA RMD-friendly and includes a Market Value Adjustment. There are no sales charges or fees of any kind.
More Annuity options from: American Century Life
Notable Features
A 10% free withdrawal rider at a slightly lower rate than the interest-only option. Owners can also waive free withdrawals for higher rates that are subject to change, but have a minimum floor. Annuitizations are allowed after one year and surrender and MVA charges are waived with a 5 year payout or longer.
Additional Details
Product Type
MYGA (Multi-Year Guaranteed Annuity)
Term
5 Years
Free Withdrawals Yr1 / Yr2+
Int / Int
Surrender Schedule
9%, 8%, 7%, 6%, 5%, 0%
Maximum Age
90
Minimum Investment
$2,000
Maximum Investment
$2,000,000 without Home Office approval
What We Like About This Annuity
This policy offers two liquidity options for owner customization and low minimums to start. The contract does not automatically renew at maturity. There are no surrender penalties or MVAs upon owner/annuitant passing and spousal continuances are allowed.
Other Popular Products
American Century focuses on fixed annuities. Wile MYGAs are their flagship offering, consumers can also purchase immediate annuities (SPIAs) and Medicaid Compliant annuity products for estate planning needs.
About American Century Life
American Century Life
AM Best Rating: B++ Good (5th of 13 ratings)
https://aclic.com/
About American Century Life Insurance Company
Founded in 1940, this B++ rated insurance company is domiciled in Columbus, Ohio and its administration is handled in Allen, TX. They serve the individual, family, and business markets, helping with annuity and life insurance needs.
They specialize in multi-year guaranteed annuity accounts. Currently, they offer fixed-deferred, fixed-immediate, and Medicaid-compliant annuities in 44 states across the country. Annuity policies can be obtained through independent insurance agents licensed in your state of residence.