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
- 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
If this is your very first visit here to our website, then we would personally like to welcome you to AnnuityGator.com. We are an experienced team of financial experts who are dedicated to providing you with very in-depth, and nonbiased, annuity reviews. We have been offering these reviews for a number of years – far longer than many of our competitors – and because of that, we have become a well-known and trusted source of information about annuities and how they work.
If you have been seeking information about annuities via the Internet, then it is highly likely that you have run across a plethora of conflicting details about these particular products. This, however, is not entirely surprising, as there are a lot of details available – and all types of annuities may be structured in a different manner.
It is also possible that you have recently attended a seminar that was designed to provide you with information regarding annuities, and to then met with the advisor who presented the seminar to discuss your personal financial situation, and how an annuity could work for you. This may even have led you to our website in order to obtain more specific information.
While there are a number of other very good websites out there that are focused on marketing their annuities online, there are a fair amount of these sites that tend to lure in visitors by offering claims like:
- Highest annuity payouts
- Lowest fees
- Guaranteed income for life
- Top Rated Annuity Companies
- Get an Annuity Quote Now!
Even though these claims may sound enticing, it is critical that you verify their validity before you move forward with buying any annuity. In doing so, you may have to read through a myriad of annuity fine print – or you could just read on right now.
If you would like to find out more about the American Freedom Aspire 7 annuity that is offered by Great American Life, then you have definitely come to the right place. In fact, we dare say that this website that you are currently on right now is the only place where you can actually find out all of the pertinent details – which includes the good, the bad, and the ugly. However, having all of the facts in one place can help you immensely in truly determining whether or not this is the right annuity for you.
Often, the insurance sales agents who offer fixed annuities will paint you a nice, rosy picture of how these products are safe. Unfortunately, they may also leave out the details regarding any potential drawbacks that the product may have. With that in mind, before you place a large amount of your hard earned savings into an annuity, it is important that you know the entire story.
Just to be clear here, fixed annuities can provide a number of nice benefits, provided that they fit in with your overall financial picture. So, it is key that you know exactly what it is that you are getting into, and why you may be choosing one annuity over a long list of other possible options.
This annuity review is here to assist you with getting a better understanding of all of the small print so that you are more knowledgeable regarding the Great American Life’s American Freedom Aspire 7 annuity and why it may be right for you in terms of achieving your retirement income goals.
So, if you’re ready to dive in, let’s go ahead and get started.
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|
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
How a Financial Advisor Might “Pitch” this Annuity
The American Freedom Aspire 7 annuity from Great American Life Insurance Company is a flexible premium fixed annuity. It may be used with qualified or non-qualified funds – allowing applicants up to age 85 (in most cases). Depending on your age at annuity issue, you could deposit up to $1 million.
If you have been approached by a financial or insurance sales agent who is offering you this annuity, then it is possible that they may have focused on certain features that it provides, such as protection of principal, and a set amount of income in the future that can last for the remainder of your life – regardless of how long that time may be.
However, as an educated consumer, it is also likely that you are aware that financial and insurance companies do their best to ensure that the products they offer sound very enticing. For example, by reading over the bullet points stated above, you may have initially thought that this annuity could be the ideal option for your savings.
However, it is important to note that, when being offered this – or any – annuity by a commissioned sales rep, then he or she will probably explain it to you highlighting all of the positive traits.
But, when you take a closer look at the American Freedom Aspire 7 annuity, even though it has some positive features, once you have read the fine print, you may start to realize that it may not be all that ideal for you and your specific financial goals.
For example, while the product information states that the rate will increase each year during its seven-year term, the base interest rate will really only increase by 0.10 percent at the end of years one through six. And, if you make additional payments into the annuity, it will not change for those purchase payments.
In addition, when it comes to early withdrawal charges on the Aspire 7 annuity, each of your purchase payments will have its own seven-year early withdrawal period. So, in essence, each time you make a deposit into the annuity, those funds will essentially be locked in for seven years (or they will be charged a fee if taken out before this seven-year surrender charge time frame has elapsed).
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:
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
Where it works worst:
- 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 order to truly know how to compare the best annuity options for you, click here so that you can download our free annuity report.
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?
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