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Summary of Western National Future Freedom Annuity

Safety for your funds.1 With the return-of-premium guarantee, you can even ask for and receive 100% of your purchase payment(s) (premium) back – at any time – less any withdrawals already taken, or the withdrawal value (annuity value less any withdrawal charges), whichever value is greater.

Tax-deferral advantage.2 You can postpone taxes on your interest earnings until you are ready to make withdrawals.

  • Meanwhile, your principal and earnings earn interest.

  • Even the money that otherwise would have gone toward paying federal income taxes stays in the account, earning interest.

  • That means you can accumulate more money over a shorter period of time, which ultimately can provide you with a greater income.

Competitive rates—earn guaranteed interest.  The Western National Future Freedom Annuity features a one-year interest rate guarantee on the initial premium and includes a one-time premium bonus. The premium bonus is added to your initial premium on the contract date. Additional contributions will earn the interest rate then in effect.

Guaranteed minimum renewal rate. 1,3 Regardless of future economic conditions, your annuity is guaranteed to renew at or above the minimum interest rate stated in your contract.

Easy access to your money.2 In case of an emergency, you can take advantage of the annuity’s penalty-free early withdrawal privilege.

  • After 30 days from the contract date, you may take multiple penalty-free withdrawals each year not exceeding in total the greater of (1) the accumulated interest or (2) up to 15% of the previous anniversary annuity value.

  • Withdrawals can be taken randomly for a minimum of $250 or systematically on a monthly, quarterly, semiannual or annual basis. Systematic withdrawals2 can be for interest only or a fixed dollar amount (free if less than permitted free withdrawal).

  • You can access more than the permitted free withdrawal amount anytime. However, such withdrawals will incur the following withdrawal charge fees for six years from the contract date:
    7%, 7%, 6%, 5%, 4%, 3%, 0%.
 

Early withdrawal charge waivers. Multiple withdrawal charge waivers are available and can be used if you need to stay in a nursing home, are unable to perform certain activities, or discover you have a terminal illness. Not available in some states and contract provisions may vary from state to state.

Estate-planning advantage (death benefit). Fixed annuities generally avoid the expense and delay of probate (a court-supervised process that establishes the validity of a will).

  • Plus, with the Western National Future Freedom Annuity, you can designate and/or change your beneficiary(ies) at no cost.

  • The annuity guarantees the contract value will be paid directly to the beneficiary, without withdrawal charges.1 

Multiple income payout options. When you are ready to start taking income, you can choose an income option that guarantees income for life or for a certain period.1 


For more information:

Clients: Call Client Care Center at 1-800-424-4990.

Selling Agents: Call Internal Wholesaling at 1-888-237-4210.


1 This and all guarantees mentioned are subject to the claims-paying ability of American General Life Insurance Company. Annuities have limitations. 

2 Remember, withdrawals of taxable amounts are taxed as ordinary income and, if taken prior to age 59½, your withdrawal may be subject to a 10% federal early withdrawal penalty. Contractual withdrawal charge fees (surrender charges) may also apply.

3 Depending on market conditions, some interest rate options may not be available at all times. Please check with your licensed representative for availability.

Tax-qualified contracts such as IRAs, 401(k)s, etc., are tax deferred regardless of whether or not they are funded with an annuity. If you are considering funding a tax-qualified retirement plan with an annuity, you should know that an annuity does not provide any additional tax-deferred treatment of earnings beyond the treatment by the tax-qualified retirement plan itself. However, annuities do provide other features and benefits such as income options.

Neither American General Life Insurance Company nor its agents or representatives are authorized to give legal, tax or accounting advice. Please consult your attorney, accountant, or tax advisor on specific points of interest.

The Western National series of annuities is issued and underwritten in New York by The United States Life Insurance Company in the City of New York and in all other states by American General Life Insurance Company.