Why Their Fixed Annuities Might Work for You—And Who Should Avoid Them
Who Is Axonic?
Axonic Insurance Services, launched in 2022, distributes annuities underwritten by AmFirst Insurance Company, which has an A‑ rating from AM Best. While Axonic is relatively new and not a household name, AmFirst has been in business since 1998 and is based in Oklahoma. The annuities are branded and sold through Axonic’s platform, but the insurance contract itself is with AmFirst.
Axonic does not sell directly to consumers. Their annuities are available only through financial professionals, including insurance brokers, wealth managers, and registered investment advisors.
What Types of Annuities Does Axonic Offer?
Axonic specializes in two main types of annuities:
- Multi-Year Guaranteed Annuities (MYGAs): These include products like Waypoint, Skyline, ViewPoint, and VantagePoint. These are fixed annuities that offer a guaranteed interest rate for a set term, typically between 2 and 10 years.
- Fixed Indexed Annuities (FIAs): Their Trailhead FIA offers interest credits based on the performance of an index, such as the S&P 500 or engineered alternatives. FIAs also include a declared fixed interest rate option, which changes annually.
Funding types: These annuities accept IRA rollovers, Roth IRAs, SEP IRAs, SIMPLE IRAs, and non-qualified funds.
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Our Professional Opinion
Axonic has annuities we would recommend and others we would pass on. We like its straightforward fixed annuity choices when the guaranteed rate is competitive, but we are less impressed by the advisory-fee version and have mixed feelings about its indexed annuity.
Axonic designs and distributes the annuities, but AmFirst Insurance Company issues the contracts and backs the guarantees. AmFirst has an A− (Excellent) financial strength rating from AM Best. That is an OK rating and meets our minimum standard for recommending an insurer.
For fixed-rate savings, we like having a choice of guarantee periods and knowing what interest rate you will earn during the selected term. However, we do not see the point of paying an ongoing advisory fee for a fixed annuity when a similar option is available without that fee. A fee reduces what you keep, so compare your net return before buying.
Our opinion of Axonic’s indexed annuity is mixed. We like that some participation rates are guaranteed for multiple years, but those guarantees apply to select engineered indexes. The traditional S&P 500 options can have their caps or participation rates changed at renewal. We would rather lock a competitive rate on a straightforward index for the entire surrender period.
We also dislike that some fixed annuities can automatically renew into another surrender period if you miss the maturity window. That stinks if you planned to move your money and did not realize you needed to act.
What We Like
- Guaranteed fixed-rate choices: You can select a term and know the interest rate for that period.
- AmFirst meets our minimum rating: Its A− rating makes these annuities eligible for consideration under our standards.
- Some guaranteed participation rates: Select indexed strategies lock the participation rate for multiple years.
- Access after the first year: Some contracts provide annual withdrawals without the normal surrender charge, subject to their rules.
What We Don’t Like
- Advisory fees on a fixed annuity: We would rather use a comparable fixed annuity without an ongoing advisory fee.
- Traditional index rates can change: A competitive S&P 500 cap or participation rate may be reduced at renewal.
- Engineered index tradeoffs: A guaranteed participation rate does not guarantee the index will perform well.
- Automatic renewal: Some contracts can start a new surrender period if you do not act when the initial term ends.
- Limited early access: First-year withdrawal restrictions, surrender charges, and a possible market value adjustment make these poor places for money you may need soon.
Explore our individual Axonic annuity reviews using the links below to see which products we recommend, which ones we do not, and why.
Our Axonic Annuity Reviews
Pros and Cons
- ✅ Pros
- High Fixed Rates on MYGAs: Competitive interest rates on higher deposit amounts make them attractive for those wanting guaranteed returns without market exposure.
- Strong Insurance Backing: AmFirst holds an A– rating from AM Best, indicating strong claims-paying ability.
- Penalty-Free Withdrawals: Most contracts allow 10% penalty-free withdrawals annually after the first contract year.
- Waivers for Emergencies: Terminal illness and nursing home confinement waivers are typically included.
- Technology-Driven Platform: Electronic applications are streamlined using tools like FireLight, which makes processing fast and efficient.
- ❌ Cons
- New and Unproven Brand: Axonic was founded in 2022, so there’s limited consumer familiarity or long-term track record.
- No Lifetime Income Rider on MYGAs: You can’t turn these products into guaranteed income for life unless you annuitize—which we don’t recommend.
- Lack of Traditional Insurance Products: No term life, whole life, or long-term care insurance is available—only annuities.
- Limited Index Options in FIA: If the FIA doesn’t include a traditional index like the S&P 500, you may be locked into engineered indexes with no long-term performance history.
- Surrender Charges Apply: These apply if you withdraw more than the penalty-free amount before the term ends.
In the News
Who Needs an Axonic Annuity?
- People nearing retirement who want guaranteed growth for 2 to 10 years.
- Conservative investors who want safety and don’t want market volatility.
- High-net-worth individuals who can take advantage of higher rates at larger deposit tiers.
- People rolling over an IRA who want a tax-deferred alternative to a CD.
- Investors who don’t need income now and want to defer taxes while preserving principal.
Who Should Avoid Axonic?
- People needing lifetime income: These MYGAs and FIAs are not ideal unless you plan to annuitize or pair them with another product that offers a GLWB rider.
- Younger investors under 59½: Withdrawals from tax-qualified funds before this age may incur IRS penalties.
- Those needing full liquidity: If you need unrestricted access to your money, these are not suitable due to surrender charges.
- Buyers who want brand recognition: Axonic is new and relatively unknown.
What Happens at Death?
Your beneficiary receives the full accumulation value of the annuity as a lump sum, bypassing probate. If your contract includes a Guaranteed Lifetime Withdrawal Benefit (GLWB) and your spouse is the joint annuitant, they may continue the income. However, Axonic MYGAs do not include a GLWB—so the contract simply pays out the account value.
What Happens After the Surrender Period?
After the term ends, the contract typically enters a renewal period, where your funds may automatically roll into a new term unless you request a full withdrawal. Most carriers offer a 30-day window to transfer or cash out your annuity without penalty. If you plan ahead, you can reinvest the funds into a new annuity, transfer to another insurer, or start drawing income.
Other Types of Insurance to Consider
If you’re considering Axonic’s annuities, you may also want to add:
- Guaranteed Lifetime Income Riders (GLWBs): If you need income, you’re better off with a fixed indexed annuity that includes a GLWB.
- Term or Whole Life Insurance: Use life insurance to replace income or recover lost value from annuitization.
- Standalone Long-Term Care Annuities: Better than annuity-based LTC riders, these allow you to use qualified funds for tax-free care.
- Immediate Annuities (SPIAs): For those under age 59½ needing income now, consider a life-only SPIA with a life insurance policy to avoid early withdrawal penalties.
Compare First—Then Buy
Axonic offers compelling fixed annuity options with strong crediting and a reputable insurer (AmFirst). But they lack flexibility in income features and brand recognition. If you’re just looking for guaranteed growth and safety, they are worth considering.
Before you commit, compare MYGAs and FIAs from other A-rated carriers that include more flexible features like GLWBs, inflation protection, and broader index choices.
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Questions From Our Readers
Should I move my professionally managed Fidelity investment into the Axonic Trailhead Fixed Indexed Annuity (FIA)? I’m 30 and being told it will grow from $1.2M to $3.2M–$4M in 10–18 years . Is this realistic, and how does the contract actually work?
The Axonic Trailhead FIA doesn’t offer an income rider, so the “$3.2 million to $4 million” figure the advisor quoted is even more misleading. Without an income rider, there’s no guaranteed lifetime income feature tied to those projections—so that number likely refers to a hypothetical value based on optimistic backtested index performance, not guaranteed results or money you can actually withdraw.
Axonic is a very new entrant in the annuity space, with limited long-term financial history. That introduces additional risk. Established insurance companies typically have decades of performance data, financial strength ratings, and track records of paying claims—Axonic does not. If you’re going to lock up money for 10+ years, especially at age 30, you need to be confident in the company’s ability to honor the contract decades into the future.
Axonic’s annuity products are built on engineered indexes, which are designed to show high backtested returns by tweaking allocations, volatility controls, and rebalancing algorithms. These indexes don’t have a real-world performance history and don’t reflect what you’d actually earn going forward. They’re often used as marketing tools to make products look more attractive, but they rarely perform as advertised.
At your age and net worth level, locking all your funds in a product like this would be extremely risky and inappropriate. You’ll likely give up liquidity, flexibility, and growth potential. Better to wait until you’re closer to retirement, and if you want to use an annuity, choose one with a guaranteed income rider from an A-rated company using traditional indexes like the S&P 500, not backtested engineered ones.
You can also explore Fixed Indexed Annuities with GLWBs as you approach retirement to secure income—without falling for exaggerated growth projections. Use a licensed annuity broker, not just a salesperson tied to one product.