What is covered in this annuity review?
In this review, we will be discussing the following information regarding the Great American Landmark 3 fixed indexed annuity:
- Type of product
- Current rates
- Realistic long-term return expectations
- How this annuity is used best
- How this annuity is more poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you are currently in the process of considering an annuity, then it is important to know that these products can be a logical choice if you are seeking a lifetime income in retirement, along with other key benefits.
Before you dive headfirst into the purchase of an annuity, though, it is essential that you have a good understanding of just exactly what these products do – and don’t do – and that you also know how the type of annuity that you’re considering will work.
For instance, with the Great American Landmark 3 fixed indexed annuity, you have the opportunity to earn an index-linked return, while at the same time, ensuring that your principal is safe – no matter what occurs in the stock market.
As with other annuities, you can also choose from several different income options, which includes one that pays you an income stream for the remainder of your life, regardless of how long you may need it.
Throughout the past decade or so, fixed indexed annuities have actually become much more popular – particularly with those who are approaching retirement. One reason for this is their “best of all worlds” offerings – such as the opportunity for growth, protection of principal, and guaranteed income down the road.
Due to this increased demand for these products, though, the number of insurance and financial advisors who are offering them to their clients has grown substantially. But this is not necessarily a good thing.
For instance, with so many annuities coming into the marketplace – many with a long list of “amenities” – they can be quite confusing, for both consumers and financial representatives. Given that, unless the insurance or financial advisor that you work with has a focus on dealing with annuities, you really should do some additional research so that you know exactly what you might be getting into.
An annuity is considered to be a very long term commitment. And, while these products may offer a number of enticing features, you need to make sure that these features are right for you and your specific goals.
That’s where we come in!
Annuity and Retirement Income Planning Advice You Can Trust
If you’ve never been to our website before, then please allow us to personally welcome you to AnnuityGator.com. We’re a team of annuity professionals who focus on offering both comprehensive and unbiased annuity reviews.
We have been at this for quite some time now – far longer than our competitors have – and because of that, we have come to be known as a highly trusted source of annuity information online.
Throughout the past few years, though, there are a lot of “copycat” sites that have appeared on the Internet, and they all seem to claim that they’ve got the best annuity products that offer the highest rates, the lowest fees, and a guaranteed source of lifetime income.
Does this look familiar?
That being said, if you’re currently looking for more details on the Great American Landmark 3 fixed indexed annuity, then you are definitely in the right spot. In fact, we dare state that right here on this website is the only place where you will find the good, the bad, and the downright ugly about this annuity – but having all of these details on hand is the only way to make a well-informed determination as to whether or not it is the best option for you.
So, if you are ready to start the review, let’s go ahead and dive in!
Great American Landmark 3 Fixed Indexed Annuity at a Glance
|Product Name||Landmark 3|
|Issuer||Great American Life|
|Type of Product||Fixed Indexed Annuity|
|A.M. Best Rating||A (Excellent)|
|Phone Number||(888) 504-7109|
Opening Thoughts on the Great American Landmark 3 Fixed Index Annuity
Great American Life traces its roots all the way back to the year 1872. The company has a key focus on annuities, and it offers a wide array of products that can help grow funds and generate income when it is needed.
Today, Great American Life Insurance Company is a member of Great American Insurance Group and a subsidiary of American Financial Group, Inc. The company has earned high ratings from the insurer rating agencies, including an A (Excellent) from A.M. Best for more than forty consecutive years. It is also rated an A+ by Standard & Poor’s.
In less than a decade, Great American Life’s annuity premiums have tripled – from $1.4 billion in 2009, to more than $4 billion in 2017. This shows the tremendous growth that annuities – in particular, fixed indexed annuities – have experienced, due in large part to the volatile and unpredictable market.
To check out some of the recent Great American Life customer reviews, go HERE.
Over the past several years, fixed index annuities have become much more sought after by consumers as a way to obtain a guaranteed income for life, as well as an opportunity to keep principal safe regardless of what the market does.
But, even though this may all sound enticing, the truth is that when something sounds too good to be true, then you probably need a bit more information in order to discover the whole story. This is particularly the case if your decision about an annuity could ultimately result in you committing a large chunk of your hard-earned retirement savings.
Before we get into the gritty details, here are some necessary legal disclosures…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Great American Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For additional information on how to compare annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Great American Life Describes the Landmark 3 Annuity
The Landmark 3 from Great American Life is described as a fixed indexed annuity product. This annuity, which is available to retail consumers, is designed for investors who are seeking growth opportunity, as well as the flexibility to access funds penalty-free after just three years.
(If this sounds familiar to you, it could be because the Great American AssuranceSelect 3 Plus annuity provides the same benefits, but is offered through the Financial Institutions channel).
The Landmark 3 annuity offers indexed return strategies that are linked with several well-known indexes and Exchange Traded Funds (ETFs), including the:
- S&P 500
- iShares U.S. Real Estate ETF
- iShares MSCI EAFE ETF
These indices offer the potential for upside growth, while at the same time, providing protection against market loss in downward moving environments. This can help to ease the worry about negative returns – especially as you are approaching your retirement years.
In addition, because the Landmark 3 can be issued up to age 90, older individuals can secure a safe financial vehicle for growth, and may also be able to leave a financial legacy to his or her loved ones.
The Landmark 3 and the AssuranceSelect 3 Plus are the only three-year fixed indexed annuities that are available today. But, even given this flexibility, there may be some “tradeoffs” you need to make in order to secure all of the benefits.
How an Insurance or Financial Advisor Might Pitch the Landmark 3 Annuity
One of the biggest concerns on the minds of retirees and pre-retirees today is having enough money to last through retirement years. Because of that, the guaranteed income feature on the Landmark 3 annuity from Great American is can be a major plus – and is oftentimes one of the key points made by an insurance or financial advisor when presenting this annuity.
Likewise, there is the beneficiary protection that is provided by the death benefit. Here, in the event that the annuitant passes away before receiving all of the contract value back, a named beneficiary can receive the funds, without them having to pass through probate.
But even with all of these awesome features, you really need to be careful, as there are some “tradeoffs” you may need to make with this product. For instance, even though you have the ability to obtain a positive return based on the performance of an underlying index (or indexes), the upward potential is capped.
In other words, this annuity uses an annual index rate cap, which is another way of saying that there is a maximum amount of return you can earn each year – even if the underlying index(s) have a stellar performance. In this case, if the cap on earnings is 4%, and the underlying index return 6%, you will only receive 4% for that time period. In addition, excess withdrawals will void any income credits, and can even reduce the income base.
What About Fees on the Landmark 3 Annuity from Great American?
While there are no up-front fees taken out of the Landmark 3 fixed indexed annuity, that doesn’t mean that this annuity is free of any potential charges. For example, even though this annuity has a “short” surrender period of just three years, if you need to access more than 10% of your contract value during that time, you will be hit with a significant surrender penalty.
In Year 1, this penalty is 9%, and it grades down to 8% in Year 2, and to 7% in Year 3. Finally, in Year 4, it reaches 0%. It is also important to note that if you take withdrawals before you turn age 59 ½, you could also incur an additional penalty of 10% from the IRS. This is known as an early withdrawal penalty.
The Annuity Gator’s End Take on the Great American Landmark 3 Fixed Index Annuity
Where it works the best:
Although this annuity comes with a number of nice benefits, it will typically work the best for those who are seeking the following attributes:
- Principal protection
- The opportunity for additional (index-linked) growth that could provide a higher return than that of a regular fixed annuity
- Guaranteed income (and income for the remainder of your life, if you choose the lifetime income option)
Where it works the worst:
On the other hand, there are some areas where this particular annuity might not be the best option for you. That may be for people who:
- Need to access more than 10% of the annuity contract’s value within the first three years of purchasing the annuity
- Do not intend to use the lifetime income feature
So, if you are still considering the purchase of the Landmark 3 annuity from Great American Life, but you’re still not 100% convinced of whether or not it will be right for you, we can help you to “test” it, based on your specific scenario, at no cost or obligation.
Just let us know if this is something that you are interested in doing, and we’ll get on the case right away!
There are a lot of important factors that should be taken into consideration if you are thinking about purchasing an annuity. These should include – but are certainly not limited to – how the annuity can produce a return, how safe your money will be, how the income will pay out, and whether or not there are any other optional features that may be added to the annuity (as well as any added costs).
If you are considering the purchase of a fixed index annuity like the Landmark 3 product from Great American Life, then you can be assured that your principal will be safe, regardless of what occurs in the stock market, or even in the economy as a whole. This annuity will also provide you with an opportunity to grow your retirement funds, and to receive a guaranteed income in the future for as long as you need it.
But there can still be some questions left unanswered – and, the only way to really know if this particular annuity could be right for you is to test it with an annuity calculator. If this is something you would like to pursue, we can offer you a personalized look at how the Great American Landmark 3 fixed indexed annuity might perform – based on your specific parameters. Then, once we have run these numbers, we’ll provide you with a detailed spreadsheet at no charge to you.
Do You Still Have Any Additional Questions? Did You Notice Any Mistakes in this Review?
While we realize that this annuity review was a bit on the long side, our feeling is that we would much rather provide you with a lot of details than with not enough. This is really the only way to get the full picture. Therefore, if you did find that this annuity review was beneficial to you, then please feel free to forward it on and to share it with anyone else that you think may benefit from it as well.
In addition, we know that details about annuities – and other financial products, too – can and do change somewhat quickly. With that in mind, if you happened to notice anything in this review that needs to be corrected and/or updated, please let us know that as well and we will get on the revisions right away.
Are there any other annuities that you would like to see information about in our Annuity Review database?
If you would like to see reviews on any other annuity (or annuities), our team of annuity “geeks” will get on the ball and get them up on our website. Just simply click here to let us know which product (or products) you are interested in seeing. And, be sure to check back soon.
The Annuity Gator
P.S. If you would like to read more of our Great American annuity reviews here are some links to check out:
- Independent Review of the Great American – American Legend III Fixed Indexed Annuity
- Independent Review of the Annuity Investors Life Great Flex 6 Fixed Annuity
- Independent Review of the Great American American Freedom Stars and Stripes 5 (MYGA) Annuity
- Independent Review of Great American American Freedom Aspire 7 Annuity
- Independent Review of the Great American Assurance Select 7 Fixed Indexed Annuity
- Independent Review of Great American Life AssurancePlus 7 Fixed Annuity
- Independent Review of the Great American AssuranceSelect 3 Plus Fixed Indexed Annuity
- Independent Review of the Great American Index Summit 6 Variable-Indexed Annuity