American Life Classic 5
Current Fixed Rate
5.83%
The American Life Classic 5 (no liquidity) is a single-premium, multi-year guaranteed annuity with a five-year interest rate guarantee of 5.70%. A bonus interest payment of 0.60% is credited if no withdrawals are made during the three-year surrender period. The rate above reflects the credited bonus amount and effective annual interest rate assuming no withdrawals.
This policy automatically includes 10% liquidity and IRA RMDs in years 2-3 at the lower yearly rate. All contracts include a 30-day renewal window for transfers, full withdrawals, and exchanges. Qualified and non-qualified funds are accepted, including IRA rollovers and 1035 tax-free exchanges.
The contract includes a Market Value Adjustment provision. There are no surrender or MVA penalties upon passing.
More Annuity options from: American Life
Notable Features
This policy provides a loyalty bonus at maturity for those who choose not to take any withdrawals. There are several annuitization options available during the surrender period for systematic income payments.
Additional Details
Product Type
MYGA (Multi-Year Guaranteed Annuity)
Term
5 Years
Free Withdrawals Yr1 / Yr2+
0% / 10%
Additional Withdrawal Information
This policy includes 10% free withdrawals and Required Minimum Distributions (years 2+) at no immediate charge. However, owners who take any withdrawals will not receive the Loyalty Bonus at the end of the term and are therefore credited a lower effective rate.
Surrender Schedule
9%, 8%, 7%, 6%, 5%, 0%
Maximum Age
90
Minimum Investment
$1,000
Maximum Investment
$1,000,000 without prior approval
What We Like About This Annuity
This unique annuity offers higher rates in exchange for owners not taking any withdrawals during the three-year maturity term. There are no surrender charges at death. There are very low minimums to start, and the potential for bonus interest after 60 months.
Other Popular Products
American Life specializes in guaranteed annuities. They offer a popular indexed annuity with a large upfront bonus called the MaxGrowth 10. Their multi-year guaranteed indexed annuity (American Fusion) is also a strong growth product.
About American Life
American Life
AM Best Rating: B++ Good (5th of 13 ratings)
https://www.american-life.com/
About American Life & Security Corp
They were founded in 1960 and are headquartered in Lincoln, Nebraska. In 2018, leadership pivoted to focus on fixed and indexed annuities. They partnered with FAST, an innovative digital platform, to upgrade their technology and simplify the process of buying insurance and annuities.
Their foundations for success include strong management, dynamic culture, technology & innovation improvements, financial strength, and an efficient operating model.