AIG American Pathway Immediate Annuity

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American Pathway Immediate Annuity is a single- premium, fixed annuity product that’s guaranteed by US Life or AGL. This is an immediate income annuity that investors can buy via a single premium, after which they’ll start receiving income on a monthly, quarterly, semi-yearly or yearly basis. Income payments start as soon as 1 month (30 dates) after the deposit date. This annuity product includes CPI (Consumer Price Index) adjustments done every 1st of January after income payments commence.

American Pathway Immediate Annuity Facts

Single Premium Payment

AIG’s American Pathway Immediate Annuity allows a minimum single premium of $10,000, and a maximum single premium of $1,000,000 with no need for pre-approval from the insurance company.

Issue Ages

The issue age is 0-90 years. For Joint or Single lifetime Income-Only contracts, the 2 annuitants should be no older than 85 years.

First Payment Date

Between 30 days and 12 months after contract issue.


  • Single Life – payments are provided through the life of one annuitant.
  • Joint and Survivor – payments are provided so long as one of the annuitants lives.  Payments can remain intact or decrease following the demise of the first/primary annuitant.
  • Joint and Contingent – payments are provided so long as either of annuitants is alive, and payments can remain intact/level or decrease following the demise of either annuitant.

Commutation withdrawal benefit

If the investor unexpectedly needs to access funds that are more than the scheduled payouts after the 2nd contract anniversary, they can get up to 100% of their current account value paid out in lump sum.

Payment increase options

Payment increase options available with the American Pathway Immediate Annuity make it possible for investors to set up their payouts to increase annually. This feature isn’t available with many other fixed annuities.

Advance payment options

For investors already receiving their payouts on a monthly basis, they may activate a lump-sum payout to cover the next 6 months’ worth. The regular monthly payouts then resume after 6 months. This feature can be exercised by investors aged 59½ or older with nonqualified contracts or Roth IRA. Advance payments can be invoked only twice within the contract’s life.

Potential Benefits

  • Create predictable stream of income – the American Pathway Immediate Annuity allows you to buy an immediate source of life income so you can put at bay uncertainties about retirement income. This annuity product also delivers flexible payout options, and helps safeguard your assets from market volatility.
  • Partially tax-free income payments – when funded with after-tax assets, income payments are partially tax-free. The proceeds from this immediate annuity product can help provide the income you need to adequately tackle retirement expenses.

Payment recipient flexibility

The investor can designate an appointed beneficiary who receives the annuity payments, even upon early death.

Talk to your financial professional

It’s important that you talk to your financial professional to get more information regarding the nooks and crannies of the American Pathway Immediate Annuity, or any other annuity product that you might want to buy. Annuity Broker’s specialists can guide steer you to the right choice based on your circumstances, and at no cost to you.

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