What’s Covered In This Review
In this review, we will be covering the following information on the Great American Life Insurance Company’s American Freedom Aspire 7 Annuity:- Product Type
- Fees
- Current Rates
- How it is used
- How it is most poorly used
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If you are considering a financial product that can provide you with security, as well as an ongoing and stable stream of income in retirement, then the American Freedom Aspire 7 fixed annuity from Great American Life Insurance Company could be a good fit for you. However, before you move forward with the purchase of this – or any other – annuity, it can be extremely beneficial if you have a much more in-depth understanding of how this product works, and how it may (or even may not) fit in with your overall financial plans. Over the past couple of decades, annuities have become more popular as a means of providing a guaranteed stream of retirement income. Because of this, the number of financial advisors who offer annuities has also expanded a great deal. This, however, is not necessarily a good thing, because even though most financial advisors want to do what is right for their clients, they may not always be offering you the full range of information that you should have before you purchase an annuity. In addition, due in large part to the fact that many insurance companies are continuing to add new products to their line-up, annuities have gotten to be even more confusing than they already were. This means that these products are often times rife with fine print – but not reading over all of this could leave you in a very “expensive” position if you purchase an annuity and later find out that it is not what you thought it was.
Annuity And Retirement Income Planning Information That You Can Trust
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- Lowest fees
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Great American American Freedom Aspire 7 Annuity at a Glance
| Product Name | American Freedom Aspire 7 |
|---|---|
| Issuer | Great American Insurance Group |
| Type of Product | Flexible Premium Fixed Annuity |
| Standard & Poor's Rating | A+ |
| Phone Number | (800) 854-3649 |
| Website | www.GAIG.com |
Opening Thoughts on the American Freedom Aspire 7 Fixed Annuity from Great American Life
Great American Life Insurance Company traces its roots back to 1872, with the founding of the German American Insurance Company in New York. Today, Great American has more than 100 locations that are disbursed throughout North America, Asia, and Europe. While this insurer focused primarily on property and casualty insurance, in the beginning, today it is considered to be a major player in the sale of traditional fixed and fixed-indexed annuities, as well. Due in part to the company’s strong financial foundation, it has received a high rating from the independent rating agencies, including an A+ from A.M. Best, an A+ from Standard & Poor’s, and an A1 from Moody’s. The company has consistently held such high ratings for more than 100 years. Because of the constant ups and downs of the stock market – particularly over the past decade or so – demand for fixed annuities has grown a great deal, as they provide a way for individuals to get a set rate of return and keep principal safe, while also providing a lifetime income in retirement that cannot be outlived. However, as the rate of return on fixed annuities of late has been extremely low, it is possible that this type of annuity will not be able to keep pace with rising inflation, which in turn, could hinder you from being able to purchase the goods and services that you need in retirement – especially if you plan to use this financial vehicle as a primary income source. Therefore, it is important to take some precautions prior to getting into this, or any, annuity, and ensure that it is the right product for you. Otherwise, you could find out the drawbacks only after you’ve placed a large sum of money into the annuity – and will be subject to fees if you wish to take your funds back out.Before we get into the gritty details, here are some legal disclosures…
This is an independent product review, and not a recommendation to purchase or sell an annuity. Great American Life Insurance Company has not endorsed this annuity review in any way, nor do we receive any compensation for providing this review. This review is solely meant to be an independent review at the request of readers so that they can see our perspective when breaking down both the positives and the negatives of this particular model annuity product. Prior to purchasing any insurance or investment product, you should be sure to do your own due diligence and consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this fixed annuity review are the property of their respective owners. For additional information on how to compare fixed 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 Insurance Company Describes the American Freedom Aspire 7 Fixed Annuity
Based on information from the Great American Life Insurance Company’s website, “a fixed annuity gives you the stability of a fixed interest rate that’s guaranteed to never drop below a minimum interest rate determined by the company.” The product literature goes on to state that the Aspire 7 fixed annuity can help you to reach your retirement dreams with these great features:- Guaranteed increasing interest rates for each purchase payment during its seven-year term
- Flexible purchase payments
- Return of premium guarantee after the third contract year
- Income that you cannot outlive
- Seven-year rolling early withdrawal charges
- 10 percent penalty-free withdrawals (each year)
- Liquidity with an extended care waiver rider and a terminal illness waiver rider
What About the Fees on the American Freedom Aspire 7 from Great American Life?
On top of knowing how your money will perform when it is in the American Freedom Aspire 7 annuity, it is also important to have a good understanding of the fees and charges that you may be assessed. That is because these can make a big difference in the performance of the annuity, and in turn, the amount of income you may receive in retirement. Although there are no up-front sales charges on the American Freedom Aspire 7 annuity, there can be fees levied if you surrender the contract or take out more than 10 percent in any given year, until the surrender charges have elapsed. With this annuity, surrender charges will last for seven years, beginning the first year at 7 percent. The surrender charges on the Freedom Aspire 7 annuity are as follows:The number of years elapsed since purchase payment:
| 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7+ |
|---|---|---|---|---|---|---|---|
| 7% | 7% | 6% | 5.5% | 5% | 4% | 3% | 0% |
The Annuity Gator’s End Take on the American Freedom Aspire 7 from Great American
Where it works best: This annuity will tend to work best for those who are seeking:- Safety of principal
- Guaranteed rate of return
- Ongoing lifetime income
- If you want access to most or all of your money during the first few years
- If you are looking for a high rate of return
- If you do not intend to use the lifetime income feature
In Summary
There are a lot of important factors that should be considered when determining whether or not a particular annuity may be right for you. However, whichever annuity you decide upon, know that it should be deemed as a long-term financial endeavor. Because of this, it is essential that you are comfortable in knowing how the annuity can get you closer to your retirement goals. When you are considering the purchase of a fixed annuity, it can offer you a set rate of return, along with the safety of principal. It can also allow you an ongoing, guaranteed stream of income – regardless of how long you may live. In the case of the American Freedom Aspire 7 annuity from Great American Life Insurance Company, there are certainly some positive features about it. But, this annuity may also fall somewhat short – and quite honestly, there may be some better options that are available to you, particularly if you are looking for lifetime retirement income, along with the opportunity for more growth. If you still have any questions about whether or not the Freedom Aspire 7 is the right annuity for you, or even if you just need some additional help in annuity lingo and definitions, then please feel free to reach out to us via our secure contact form here.Have Questions on the Great American American Freedom Aspire 7 Annuity? Did You Happen to See Any Mistakes?
Thank you for bearing with us on this review. If you did find it to be helpful, then please feel free to spread the word and share it with others as they, too, might also find the information to be useful. On a final note, as humans sometimes do, we all make mistakes. So, if you happened to notice any while going through this review, please let us know, and we will be happy to make the necessary revisions. Is there any other Annuity (or Annuities) You Would Like to See Reviewed? No problem. Our team of highly trained annuity geeks can get on it! Click here in order to get started and we will do our best to get the review online as soon as possible. Best, The Annuity Gator
