Is Athene Max Rate Fixed Annuity Any Good?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our Athene Max Rate Annuity Review

The Athene Max Rate Annuity is a fixed annuity offered by Athene Annuity & Life Company. It is a deferred multi-year guarantee annuity that provides a guaranteed fixed rate of interest for a chosen term period. The annuity offers competitive guaranteed interest rates and the option to choose from multiple term periods. Athene Annuity & Life Company is a well-established insurance company with a strong financial rating and over $104.7 billion in total assets.

Key Takeaways

  • The Athene Max Rate Annuity is a fixed annuity offered by Athene Annuity & Life Company.
  • It provides a guaranteed fixed rate of interest for a chosen term period.
  • Athene Annuity & Life Company is a reputable insurance company with over $104.7 billion in total assets.
  • The annuity offers competitive guaranteed interest rates and multiple-term period options.
  • The Athene Max Rate Annuity can be a reliable investment strategy for individuals seeking a fixed annuity option.
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Benefits of Athene Max Rate Annuity

The Athene Max Rate Annuity offers several benefits to individuals seeking a secure and reliable investment option.

Dependable Asset Growth

  • Guaranteed fixed rate of interest: The annuity provides a fixed rate for the chosen term period, ensuring dependable asset growth over time.

Tax-Deferred Interest Accumulation

  • Tax advantages: The annuity offers tax-deferred interest accumulation, meaning you won’t have to pay taxes on any growth until you withdraw the money. This allows your investment to potentially grow faster by avoiding immediate taxation.

Access to Money

  • Free withdrawals: The Athene Max Rate Annuity provides access to money through free withdrawals during the term period. This allows you to meet unexpected financial needs or take advantage of investment opportunities without penalties.

Guaranteed Stream of Income

  • Convertible to income: At the maturity date, the annuity can be converted into a guaranteed income stream. This provides a steady source of funds to support your retirement or financial goals.

Death Benefit

  • Total accumulation value to loved ones: The annuity offers a death benefit, ensuring that your loved ones receive the total accumulated value of the annuity. This can provide financial security and support for your beneficiaries.
BenefitsDetails
Dependable Asset GrowthGuaranteed fixed rate of interest for the chosen term period
Tax-Deferred Interest AccumulationAvoid immediate taxation on growth until withdrawal
Access to MoneyFree withdrawals during the term period
Guaranteed Stream of IncomeConvertible to a guaranteed stream of income at maturity
Death BenefitLoved ones receive the total accumulated value

Features of Athene Max Rate Annuity

The Athene Max Rate Annuity offers a range of features designed to provide financial security and flexibility for individuals seeking a reliable retirement savings option.

One notable feature is the penalty-free withdrawal option, which is available after the term period. This allows annuity holders to access some funds without penalties, providing added flexibility and peace of mind.

In the unfortunate event of death, the annuity waives withdrawal penalties, ensuring your named beneficiary receives a death benefit equal to the total accumulation value. This feature safeguards your loved ones’ financial well-being, allowing them to benefit from your annuity’s value.

Another essential feature of the Athene Max Rate Annuity is the market value adjustment, which can impact the withdrawal or cash surrender value based on changes in interest rates. This adjustment helps to align the annuity’s value with prevailing market conditions, ensuring a fair value for your investment.

It’s crucial to note that there may be surrender charges during the withdrawal charge period. These charges apply if you surrender your annuity before the specified period. Understanding the surrender charges and the impact of market value adjustment can help you make informed decisions about your financial goals.

The Athene Max Rate Annuity offers attractive features such as penalty-free withdrawals, death benefit protection, and market value adjustment. These features and the annuity’s guaranteed fixed interest rate make it a compelling option for individuals looking to secure their retirement savings.

FeaturesDescription
Penalty-Free WithdrawalAllows for withdrawals without penalties after the term period
Death Benefit ProtectionProvides a death benefit to named beneficiaries equal to the full accumulation value
Market Value AdjustmentImpacts the withdrawal or cash surrender value based on changes in interest rates
Surrender ChargesApplicable during the withdrawal charge period if the annuity is surrendered early
Max Rate 7

Investment Options and Limits of Athene Max Rate Annuity

The Athene Max Rate Annuity offers flexibility and choices to meet your financial goals when considering investment options. You can select the initial premium amount and term period that align with your specific needs and objectives.

The Athene Max Rate Annuity requires a minimum single premium of $10,000, allowing you to start your investment with a reasonably affordable sum. Additionally, you can make additional contributions until the maturity date, with a minimum contribution amount of $1,000.

It’s important to note that the Athene Max Rate Annuity imposes a maximum 12-month contribution limit of $100,000. This limit ensures a cap on the amount you can contribute within a given year for this annuity.

The annuity also provides beneficial features such as free withdrawal privileges every year. This enables you to access a certain amount of funds without penalties or market value adjustments. This flexibility allows you to meet unexpected financial needs or take advantage of investment opportunities as they arise.

Overall, the Athene Max Rate Annuity presents a range of investment options and limits that cater to diverse financial goals and circumstances. Whether you’re seeking a long-term investment strategy or looking to supplement your income during retirement, this annuity provides the necessary flexibility and control.

What We Like

  • Strong Financial Ratings: The product boasts impressive ratings from renowned agencies: A.M. Best rates it ‘A’, Fitch Ratings ‘A+’, Moody’s ‘A1’, and Standard & Poor’s ‘A+. These high ratings indicate financial strength and reliability.
  • RMD Friendly: It accommodates Required Minimum Distributions (RMDs), which is a significant benefit for those planning for retirement income.
  • Flexible Withdrawal in Certain Conditions: The provision that allows for a withdrawal of up to 100% of the Accumulated Value after the first contract year is noteworthy, mainly if the Annuitant is confined to a Qualified Care Facility for 60 consecutive days. This feature offers a level of financial flexibility in challenging times.

What We Don’t Like

  • Interest Rate Variations: Athene MaxRate is ‘premium banded,’ which implies that the highest interest rates are not accessible to all. This tiered approach can be a drawback for those not qualifying for the top rates.
  • Limited Withdrawal Options Without Penalty: The policy only allows for withdrawing accrued interest without incurring penalties. This limitation might be restrictive for individuals seeking more access to their funds.

Our Recommendations

  1. Assess Your Eligibility for Top Rates: Before investing, it’s crucial to understand where you fall within the ‘premium banding’ system. Knowing this can help set realistic expectations about the interest rates you might receive.
  2. Plan for Long-Term Care Scenarios: The benefit of withdrawing 100% of the Accumulated Value if confined to a Qualified Care Facility is significant. Consider how this fits into your broader long-term care strategy.
  3. Understand Withdrawal Limitations: Be clear about the conditions under which you can withdraw funds without penalties. Planning your finances and considering these limitations will help avoid unexpected costs.
Athene Annuity Reviews

Conclusion

The Athene Max Rate Annuity is a reliable option for individuals looking to secure their financial future through retirement savings. Its fixed and guaranteed interest rate for a chosen term period provides stability and peace of mind. The annuity offers a range of benefits and features, including tax-deferred growth, access to money, and a death benefit, making it an attractive choice for those seeking long-term financial security.

However, before deciding, it is crucial to carefully consider the terms, surrender charges, and market value adjustments associated with the Athene Max Rate Annuity. By conducting a comprehensive review of these factors, individuals can make an informed choice that aligns with their financial goals and needs.

The Athene Max Rate Annuity is a competitive option in the fixed annuity market. Its combination of a reliable interest rate, beneficial features, and reputable provider makes it worthy of consideration. Potential investors should seek professional advice and thoroughly review the terms and conditions to ensure the best outcome. With careful planning and consideration, the Athene Max Rate Annuity can contribute to a financially secure retirement.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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