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Independent Review of the AIG American Pathway 7 Fixed Annuity

What’s Covered In This Review

In this review, we’ll cover the following information on the AIG American Pathway 7 Fixed Annuity:

  • Product Type
  • Fees
  • Current Rates
  • Realistic long term return expectations
  • How it is used
  • How it is most 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’ve been in the process of researching fixed annuities because you’ve heard that they are safe and that they can provide you with an ongoing retirement income, then you may have come across information regarding the AIG American Pathway 7 – which may be a good choice for you.

This fixed annuity provides some nice benefits that retirees – and those who are approaching retirement – may be looking for. These may include protection of principal, along with a guaranteed income stream for life, regardless of how long you may live. Many of these product guarantees are built directly into the contract.

But, prior to moving forward with the purchase of this (or any) annuity, it is important that you have a thorough understanding of how it works, and how it may – or may not – fit into your overall financial situation.

Over the past decade, or so – and especially since the economic recession of 2008 – annuities have become much more popular, primarily as a way for people to ensure that they’ll have an income stream for life. But, even though this can be very reassuring, it is also important to keep in mind that an annuity is a long-term commitment, and penalties can be incurred if you wish to get out of the contract early.

Truly knowing what you are getting into with an annuity can be difficult, as these financial vehicles tend to be confusing. There can be a great deal of small print – even with fixed annuities, which offer the least amount of “moving parts.”

What can often times add the most amount of confusion, though, has less to do with the annuities themselves, and more to do with the way in which these products are sold to consumers. This is where we come in.

Annuity and Retirement Income Planning Information That You Can Trust

If this is the first time you have seen our website, then we would like to personally welcome you to We are a team of experienced financial professionals who are dedicated to providing you with the most comprehensive and nonbiased annuity reviews that can be found on the Internet today. We have been doing this for longer than any of our competitors – and in the process, we have become well-known for being a trusted source of annuity information.

If you have been looking for information on annuities online, or even if you have heard family and friends discussing these products, then it is likely that you may have encountered some conflicting details about them. This is not uncommon, as there is a lot of confusing information regarding annuities out there.

While there are a number of very good and reputable websites out there online that are devoted to marketing their annuities, the reality is that some of these sites may try to lure visitors in by making claims such as:

  • Highest income payouts
  • Lowest fees
  • Top-rated annuity carriers
  • Guaranteed income for life
  • Get your quote now!

Yes, these claims can be highly enticing. But are any of them really true? If you would like to get an answer to that question, then you are definitely in the right place – and dare we say that this website that you are on right now is the only place that you can actually find out all of the nitty gritty details, both good and bad.

If you have been offered the AIG American Pathway 7 fixed annuity by a commissioned insurance or financial sales rep, they will often times provide you with only the benefits regarding fixed annuities. But without also knowing the potential drawbacks, you won’t be able to make a truly well-informed buying decision.

This doesn’t necessarily mean that what they are trying to sell you is bad. But what it does mean is that as you approach retirement – and as you attempt to determine what to do with the money you have saved over the many years, you should know exactly what it is you are buying with it, and why you may be choosing one particular annuity over many others.

This annuity review is here to assist you in decoding all of that fine print so that you will have a better understanding of whether or not this annuity can actually help you in achieving your financial goals.

So, if you’re ready to move forward, let’s go ahead and dive in!

AIG American Pathway 7 Fixed Annuity at a Glance

Product NameAmerican Pathway 7
Type of ProductFixed Annuity
Standard & Poor's RatingA+
Phone Number(800) 888-2452

Opening Thoughts on the AIG American Pathway 5 Fixed Annuity

AIG has been in the business of providing wealth enhancing and protection products for nearly 100 years. During the past century, AIG has become a widely known and well-respected financial conglomerate, with more than 90 million customers in over 100 different countries around the globe.

Due in large part to its strong financial footing, along with its positive reputation for paying out its policyholders’ claims, AIG has received very high ratings from the insurer rating agencies. The company also has a grade of A+ from the Better Business Bureau.

The demand for annuities – which are always backed by insurance companies – has been steadily increasing ever since market volatility has become the norm rather than the exception over the past several years.

The biggest fear on the minds of most retirees today is that of running out of money in retirement. Because of that, many people are seeking a safe harbor for their money where they can earn at least some amount of return, while at the same time making sure that their savings are safe. This is how a fixed annuity can help.

Unfortunately, though, due to the historically low-interest rate environment of late, the return that is offered by most fixed annuities today is so low that it won’t even meet or beat the rate of inflation. And, due to the fact that most annuities will enforce a surrender charge if you want to get out of the contract within the first several years of getting in, changing your mind once you have purchased a fixed annuity isn’t going to be a good option either. This is why it is so important to understand just exactly what it is that you are purchasing before you make the commitment and jump in.

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. AIG 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 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 AIG Describes the American Pathway 7 Fixed Annuity

The AIG American Pathway 7 is a single premium deferred fixed annuity. Based on the information contained in the American Pathway 7 literature, the initial interest rate on the single premium is guaranteed for either one, three, five, or seven years – depending on the option that you select.

The annuity also has optional riders, which can help you to better “customize” it to your specific and/or anticipated financial needs. For example, with the optional return of premium guarantee, the annuity may be returned at any time for an amount that is equal to the single premium that was paid, less any previous withdrawals.

How a Financial Advisor May “Pitch” this Annuity

As an educated consumer, you may have already noticed that the insurance and financial companies do a very good job of making their products sound enticing. For instance, you might read over that bulleted list above and think that this annuity is the ideal place to put your retirement funds. And, if you are making the decision to purchase this annuity under the guidance of an insurance salesperson who stands to earn a nice commission or fee from the sale of the annuity, then you may even hear the annuity explained in an even brighter light.

When dealing with fixed annuities, here are some of the main concepts that you will hear insurance salespeople talk about when explaining them:

  • Return of Premium Guarantee
  • Guaranteed interest rates
  • Income for life

However, when you delve a bit deeper into the fine print for the AIG American Pathway 7 fixed annuity, you will notice that if you select the optional return of premium guarantee, by adding this feature, it will result in a slightly lower initial interest rate than a contract without this feature would receive.

Also, when you take a closer look at the guaranteed interest rates, you will also find that if you go with the market value adjustment option, you can earn a competitive rate on your single premium for a certain number of years. But, with this option, in addition to incurring withdrawal charges, the withdrawals that are made during the market value adjustment term that are above free amounts will also be subject to a market value adjustment.

What About the Fees on the AIG American Pathway 7 Fixed Annuity?

While there is no up-front sales commission that is deducted on the American Pathway 7 fixed annuity, you can incur surrender charges for a full seven years if you opt to take out more than 10 percent of the annuity’s overall value. In this case, the surrender charges are outlined as follows:

Contract Year1234567Thereafter

The Annuity Gator’s End Take on the AIG American Pathway 7 Fixed Annuity

Where it works best:

This annuity will usually work the best for those who are looking for:

  • A guaranteed lifetime income in retirement
  • Safety of principal
  • A guaranteed rate, at least for a certain number of years

Where it works the worst:

The AIG American Pathway 7 fixed annuity may not be an ideal fit if you:  

  • Need or want access to your money penalty-free within the first 7 contract years
  • Are seeking a high rate of return on your money
  • Do not intend to use the guaranteed lifetime income feature

In Summary

When you are in the process of considering whether or not a particular annuity is right for you, there are a number of criteria that you need to consider. For instance, any annuity should be considered as a long-term endeavor, and because of that, these financial vehicles should appeal more to those who need retirement income in the future and who are working to build up as much as they possibly can in the account in order to generate a high-income amount.

Unfortunately, even though this annuity does provide some nice guarantees like protection of principal and a lifetime income guarantee, it can still end up falling somewhat short – especially when compared to some of the other options that may be available to you.

So, if you are still wondering whether or not the AIG American Pathway 7 fixed annuity is right for you, or if you still have any additional questions or concerns, please feel free to reach out to us through our secure contact form here.

Do You Have Any Additional Questions on the AIG American Pathway 7 Fixed Annuity? Did You Notice Any Mistakes in this Review?

Thank you for bearing with us on this review. We realize that it was somewhat long. However, we would much rather give you more information that no enough. 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.

In addition, as humans sometimes do, we all make mistakes. So, if you happened to notice any while going through this review, please let us know. We are always more than happy to make any corrections and to give credit where credit is due. If you are an investor and this review causes any confusion and/or creates any additional questions, then please reach out to us as well. While we aren’t always able to get back to you immediately, we can typically clear up any questions within just a day or so.

Are there any other annuities that you would like us to review?

We’ll get to it! Our team of highly trained annuity geeks can get to work on these additional reviews. Just click here in order to get started and we will do our best in order to get the reviews online as soon as possible.


The Annuity Gator

Independent Review of the AIG American Pathway 7 Fixed Annuity


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