Independent Review of the Great American – American Legend III Fixed Indexed Annuity
What’s Covered In This Review
In this review, we’ll cover the following information on the American Legend 3 Fixed Indexed Annuity from Great American Insurance Group:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
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If you are thinking about the purchase of a financial vehicle that can provide you with index-linked growth and protection of principal, along with a lifetime income in retirement, then the American Legend III could be a viable option for you.
However, before you run out and purchase this annuity, it is highly recommended that you first ensure that you know all of the ins and outs of this product so that you have a better idea of how it may – or may not – end up getting you closer to your ultimate retirement savings and income goals.
Over the past decade or so, annuities have become much more popular, as they can provide a guaranteed income stream in retirement. Because of this increased popularity, the number of insurance and financial professionals who are offering them has also increased exponentially. However, this may not necessarily be a good thing.
That’s because, while most insurance and financial advisors work hard to do the right thing for their clients, they may not always be able to provide you with the most in-depth details regarding annuities. These products can be confusing – even for well-informed consumers and financial pros alike. So, by doing some additional research on your own, you will have a much better feel for the benefits and potential drawbacks, and from there you can make a decision as to whether or not this is the product for you.
Annuity and Retirement Income Planning Information That You Can Trust
If this is your first visit here to our website, we would personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing in-depth, and unbiased, annuity reviews. We’ve been doing this for many years – much longer than our competitors – so we have become a trusted source of annuity information.
If you’ve been shopping for an annuity for any length of time, and you have been seeking more details about them online, then it is likely that you have run across some conflicting details about these financial vehicles. This, however, isn’t all that surprising because there are many annuities out there, as well as a long list of differing opinions about them.
You also may have attended an annuity seminar recently, where in return for a free dinner or lunch, you were educated about how the American Legend 3 annuity from Great American – or some other similar annuity – works. It could even be that your attendance at that seminar is what has led you here to our website in search of more information.
Although there are numerous very good websites on the Internet that are devoted to marketing annuities, you may have already found that some of these sites will attempt to lure you in by making some pretty bold claims, such as:
- Lowest fees
- Highest income payouts
- Top Rated Companies
- Quick Quotes
- Guaranteed Lifetime Income
Even though these claims may initially sound just great before you dive in and purchase an annuity, it is critical that you determine whether or not these claims are really true – just as you would do before purchasing any other high-ticket product or service. In doing so, though, you may find yourself swimming in a vast array of annuity “fine print” – which in turn, might make your quest for information even more cumbersome.
But, if you truly want to know more about the American Legend III fixed indexed annuity from Great American Life Insurance Company, then you are certainly in the right place. In fact, dare we say that our website is the only place online where you will be able to find all of the information on this annuity. This includes the good, as well as the bad and the ugly because we feel that having all of the pertinent facts in front of you is the only way to make a truly informed decision.
Often, when an insurance or financial advisor is discussing fixed indexed annuities, they will paint a nice, rosy picture of how this type of annuity can provide the “best of all worlds” – which includes the opportunity for growth, protection of principal, and ongoing lifetime income in the future. However, in doing so, these advisors might also leave out some of the features about these annuities that may be considered negatives.
So, if you are seriously considering the purchase of the Great American American Legend III annuity, you need to know just exactly what it is that you’re getting info, as well as the reason(s) why you may be picking this annuity over a long list of other possible alternatives.
In order to be completely clear here before we move forward, we want to state that there are a number of reasons why a fixed indexed annuity like the American Legend 3 could be a great option – as long as it fits in with your specific goals and financial plan.
This annuity review is here to provide you with a better understanding of the “fine print” that you’ll find with regard to the American Legend III fixed indexed annuity. So, if you are ready to begin, let’s get started!
Great American American Legend III Annuity at a Glance
|Product Name||American Legend lll|
|Issuer||Great American Insurance Group|
|Type of Product||Fixed Indexed Annuity|
|Phone Number||(800) 854-3649|
Opening Thoughts About the Great American American Legend III Fixed Indexed Annuity
Great American Insurance Group traces its beginnings back to 1872, with a mission of providing the highest quality products and services to its customers. This insurer has key focuses on property and casualty insurance, specialized commercial products for businesses, and the sale of traditional fixed and fixed indexed annuities to consumers.
The company has an impressive track record in terms of financial strength and stability, as well as a long list of awards and accolades that it has earned throughout the years. For example, the company is ranked on Ward’s 50 List for safety, consistency, and performance. It has also been rated as an A or better by A.M. Best for more than 100 years.
Over the past several years, the stock market in the United States – and globally – has been somewhat volatile. Because of this, annuities have become much more popular – with fixed indexed annuities leading the way. One of the biggest reasons for this is because these financial vehicles can provide you with the opportunity to get market index-linked returns, while at the same time keeping your principal safe, regardless of what is occurring in the stock market.
But, while this “best of both worlds” scenario can initially seem appealing, these benefits can also come at a cost. So, before you move forward with the purchase of an annuity, be sure that you check out all of the details as, once you have purchased an annuity, it could be quite an ordeal to get yourself out of it.
Before getting into the nitty 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 Insurance Group 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 Great American Describes the American Legend III Fixed Indexed Annuity
Great American Insurance Group describes the American Legend III fixed indexed annuity as a financial vehicle that offers multiple interest crediting strategies to help build retirement savings. In addition to a declared rate strategy with this annuity, those who own this annuity can allocate their purchase payments to a number of indexed crediting strategies, including:
- A&P 500 point-to-point
- S&P 500 monthly sum
- DPDR Gold Shares
- S&P 500 Risk Control 10% index
- S&P U.S. Retiree Spending index
- iShares U.S. Real Estate ETF
The annuity also comes with some additional benefits that may be added through a rider. These include a death benefit rider, an income rider, and/or an income and death benefit rider combo.
How a Financial Advisor Might Pitch This Annuity
The American Legend 3 annuity can provide the opportunity to earn a good, solid return that is based on the performance of an underlying market index, while at the same time keeping your principal safe. As with other annuities, the funds that are inside of the account are able to grow and compound tax-deferred, meaning that there is no tax due on the gain until the time of withdrawal. Likewise, you have the option of choosing the lifetime income payout, which will provide you with incoming cash flow in the future for as long as you need it (regardless of how long that is). Given all of these cool features, it is likely that an insurance or financial advisor who is presenting it to clients will focus on the “can’t lose” aspect that also allows you the opportunity to grow the account to a higher level than you can with just a regular fixed annuity.
The annuity also offers multiple interest crediting strategies, so depending on your risk tolerance and specific goals, you can pick and choose the one that suits your needs the best. You can also ensure that you leave a legacy for loved ones via one of the death benefit options that are available on this product.
If the advisor who is presenting you this annuity will receive a sales commission when you buy it – or, even if your advisor just simply is not an expert on indexed annuity products – there may also be some things that he or she won’t tell you.
For instance, even though you have the opportunity to earn a nice, index-linked return, this return will actually be capped at a certain amount. This means that if the underlying index has a stellar performance in a given year, you will only be able to receive a portion of it – up to the annuity’s stated cap rate.
Also, while the point-to-point strategy can be beneficial when the S&P 500 or Gold Shares are rising during a given time period, you could actually end up with less interest credited to your account if the S&P 500 or Gold Shares decline just prior to the end of a crediting term.
Likewise, going with the monthly sum strategy can be good when the S&P 500 is rising steadily, with few monthly decreases during a term. However conversely, where some monthly changes in a term can be negative, you could also end up earning a lower amount of interest for that term. So, there can be a lot of “what if’s” here.
Also, the additional riders that may be added to this annuity will also come with additional charges. So, while these could add more “customization” to the annuity, you need to ask yourself whether or not it is worth the additional cost to have these.
If you would like to have any additional information, along with more assurance that you know what it is that you are really purchasing, then Click Here Now so that you have instant access to our free report on what you need to know prior to purchasing an annuity.
What About Fees on the American Legend 3 Annuity?
Just like with other annuities, the American Legend III annuity will also have some charges and fees that you need to be aware of. For example, if you choose any of the death benefit or income benefit riders, these will cost you an extra amount of premium – which in turn, can ultimately have an impact on your overall return.
Also, if you need to withdraw more than 10% of the contract’s value during the first 7 contract years, an early withdrawal charge starting at 9% will be applied. (And, if you are under age 59 1/2 and you withdraw funds from the annuity, you could also be hit with an additional 10% “early withdrawal” charge from the IRS).
American Legend III Annuity Surrender Charge Schedule
The Annuity Gator’s End Take on the American Legend III Fixed Indexed Annuity from Great American
Where it works best:
This annuity may work the best if you are looking for:
- Safety of your principal – regardless of what occurs in the market
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement
Where it works the worst:
Alternatively, this particular annuity may not be an ideal fit for you if you:
- Want penalty-free access to most or all of your money within the first seven years of purchasing the annuity
- Do not intend to use the lifetime income feature of the annuity
In order to truly get an idea of whether or not a fixed indexed annuity such as the American Legend annuity is right for you, click here so that you can access our free annuity buyer’s report.
While we know that this annuity review may have been a tad bit on the long side – so we appreciate you sticking with us this far – we want to be clear in that we feel that providing a lot of information when making this type of a buying decision can be better than not having enough.
There are a number of important factors that you need to consider before you make a commitment to buying an annuity. First off, purchasing an annuity should always be considered a long term endeavor. So, given the large commitment of both time and money, you need to feel confident about how the product will truly help you in meeting your specific financial goals.
When you are thinking about the purchase of a fixed indexed annuity, you can be assured that your principal will be safe from a volatile stock market. You can also set up the annuity to provide you with a lifetime stream of income in retirement. Because of that, you can also be secure in that you will have some income coming in for the remainder of your retirement years.
With regard to the American Legend lll annuity from Great American, you can be assured that the principal you have in the account will be safe – no matter what occurs in the stock market as a whole. You will also be able to put your worries aside when it comes to income in retirement, as the lifetime income feature on this annuity will continue to pay for as long as you need it to. So, there are definitely some nice advantages here.
But, this annuity could still fall short, and quite frankly, there could be some better annuity alternatives available for you – especially if you are looking for the opportunity to obtain growth, along with a stream of lifetime retirement income.
Because there is really no one-size-fits-all strategy when it comes to any annuity, the only way to truly know whether or not this annuity will be right for you is to have it tested. We can provide you with additional information on how this annuity may perform, based on your specific scenario. If you would like to receive a customized spreadsheet, just let us know and we’ll be happy to provide it to you.
Any Additional Questions or Concerns? Did You See Any Mistakes in This Review?
If after reading this review, you still have any questions that have not yet been answered in this review about the American Legend lll Annuity, and / or if you would like to get some additional assistance with how to best determine whether or not an annuity is right for you, then feel free to reach out to us directly through our secure contact form here.
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