The American Pathway SolutionsMYG is a single-premium, fixed annuity with a multi-year guarantee. As a single-premium contract, the American Pathway SolutionsMYG annuity is purchased with a single lump-sum payment. The minimum single premium is $10,000 (nonqualified and tax-qualified) and $1 million is the maximum. The annuity provides free-lock period of 20 days or longer in some states.
Features and Potential Benefits
Guaranteed Rate Periods
The tax deferred annuity provides long-term protection on your annuity value with a guaranteed rate period from 5 to 7 years with MVA (market value adjustment) in the state of New York, and from five, six to ten years with MVA in most other states.
Guaranteed Minimum Renewal Rate
As an investor, you can protect your annuity against future economic conditions, with guaranteed renewals at or above the minimum interest rate, indicated in your contract.
Immediate Crediting
Crediting of interest starts as soon as the policy becomes effective.
Predictable Retirement Income
The annuity provides an income annuitization option that converts your principal or contract balance into a guaranteed lifetime income stream.
Penalty-free Withdrawal Privilege
Once the initial contract year is over, investors can withdraw up to 15 percent of the annuity value of the previous anniversary annually, without any withdrawal charge or market value adjustment (MVA) applied.
In addition, after the guaranteed rate period you have a 30-day window to make a partial or full withdrawal with no early withdrawal charge fee or MVA. After the 30-day window expires, all withdrawal charge fees are resumed and applied to any withdrawals excess of the allowed free amounts made during the allocated 10 years (7 years for New York) following the initial contract date. Once the guaranteed rate period expires the MVA no longer applies.
Market Value Adjustment (MVA)
A market value adjustment is applied in the case early and/or excess withdrawals are made within the initial guarantee period. Based on the current interest rates, the adjustment can either decrease or increase the withdrawal amount. If at the time of a withdrawal the interest rates are higher compared to when you made the purchase, the MVA leads to a decrease. However, if the interest rates are significantly low, an MVA results in an increased withdrawal amount.
