Our Professional Opinion on the Axonic Waypoint MYGA
We recommend the Axonic Waypoint MYGA when its guaranteed rate is competitive with other A- or better-rated companies for the term you want. AmFirst Insurance Company is rated A- by AM Best, which meets our minimum standard, so this product does not need to pay substantially more than an A or A+ company to be considered.
Waypoint is available in two-, three-, five-, seven-, and ten-year terms. We are currently in a high-interest-rate environment, so a longer term can be a good choice when you can comfortably leave the money untouched. Locking a competitive rate for five, seven, or ten years reduces the risk of a short-term MYGA maturing after rates have fallen.
We would not automatically choose the shortest term. The two- or three-year version is better when you expect to need the money sooner, are building a MYGA ladder, or the shorter-term rate is materially higher. Otherwise, the longer guarantee may provide more value.
Waypoint is a fairly straightforward MYGA. It provides annual penalty-free access after the first contract year, a full account-value death benefit, RMD treatment, nursing-home and terminal-illness waivers, and several choices when the guarantee period ends.
The biggest drawback is the renewal provision. If you do nothing at maturity, the contract can automatically renew for the same guarantee period at the new declared rate, and a new surrender schedule can begin. That stinks because someone who overlooks the renewal notice could unintentionally lock the money up again.
Waypoint also has no normal first-year liquidity, includes a Market Value Adjustment, and does not provide a contractual return-of-premium feature. Those provisions are not unusual for a MYGA, but they need to be compared with the rate being offered.
Our bottom line: Waypoint is a good MYGA when the rate is near the top of the A- or better-rated market. The broad term selection is useful, and the longer terms can make sense right now for someone who wants to lock in today’s rates. Just make sure you understand the first-year liquidity restriction and act during the renewal window.
Compare Waypoint with the current fixed annuity rates before selecting a guarantee period.
What We Like
- A- AM Best Rating: AmFirst meets our minimum standard for new annuity recommendations.
- Five Term Choices: Two-, three-, five-, seven-, and ten-year guarantees make it easier to match the contract to your timeline.
- Longer-Term Rate Locks: The five-, seven-, and ten-year options can reduce reinvestment risk in the current high-rate environment.
- Annual Access After Year One: The owner can generally withdraw up to a portion of the prior anniversary value each year without normal surrender charges or an MVA.
- Full Account-Value Death Benefit: Beneficiaries receive the remaining policy value without the normal surrender charge.
- Health-Related Waivers: Qualifying nursing-home confinement or terminal illness can provide additional access.
- Multiple Maturity Choices: The owner can surrender, partially withdraw, annuitize, or select another available guarantee period at maturity.
What We Don’t Like
- No Normal First-Year Liquidity: Standard penalty-free access does not begin until after the first contract year.
- Automatic Renewal Risk: Failing to act can restart a guarantee period and surrender schedule.
- Market Value Adjustment: Excess withdrawals during the term may be increased or reduced by the MVA.
- No Return of Premium: An early surrender can produce less than the original premium.
- A- Is the Minimum We Accept: The product still needs a competitive rate; there is no reason to use it when a stronger-rated company pays materially more.
Waypoint MYGA Overview
The Axonic Waypoint MYGA, issued by AmFirst Insurance Company (A-, Excellent) and distributed by Axonic Insurance Services, is a single-premium deferred annuity available in 2-, 3-, 5-, 7-, and 10-year guarantee periods. It includes a Market Value Adjustment (MVA) and liquidity features, making it ideal for conservative savers seeking contractually guaranteed growth and tax-deferred interest accumulation.
How It Works
You make a one-time premium deposit (minimum $20,000). The insurer guarantees a fixed interest rate for your selected term. Interest compounds tax-deferred until withdrawn or converted into income payments. At the end of the term, you receive a 30-day window to renew, withdraw, or roll over your funds without surrender charges or MVA. You can fund this annuity with non-qualified money or qualified funds, including IRAs, Roth IRAs, 401(k)s, SEP IRAs, and inherited IRAs.
Key Features
- Issue Ages: Up to 89 years and 364 days
- Free Withdrawals: 10% annually after the first year, multiple withdrawals allowed with a $500 minimum
- Riders: Nursing Home Confinement and Terminal Illness waivers (not available in California)
- Surrender Charges: Decline annually, starting at approximately 9% and ending near 0% by the end of the term
- Death Benefit: Lump-sum payout of the contract value before income payments begin
- 30-Day Renewal Window: No surrender charges or MVA during this period
- RMD Friendly: Compatible with required minimum distributions from retirement accounts
Pros
- Competitive guaranteed interest rates for each term length
- Wide age eligibility, up to almost 90 years old
- Flexible withdrawal options after the first contract year
- Health-based waivers for nursing home confinement or terminal illness
- Issued by a financially strong insurer rated Excellent.
- MVA feature helps the insurer offer higher crediting rates than non-MVA annuities
Cons
- High surrender charges during the early years of the contract
- Not FDIC insured; backed solely by the insurer’s financial strength
- Limited access to funds in the first year
- No Guaranteed Lifetime Withdrawal Benefit (GLWB); this MYGA is designed for accumulation, not income
- Riders are unavailable in California, limiting residents’ flexibility.
Who Should Consider It
This annuity suits retirees, pre-retirees, and conservative investors who want safe, predictable growth without market volatility. It is also appropriate for CD investors seeking higher yields or IRA owners looking for a stable, tax-deferred fixed-income option within their portfolio.
Who Should Avoid It
This MYGA may not be suitable for investors who need early access to funds, those seeking lifetime income, or individuals uncomfortable with MVA provisions that can reduce value during rising interest rate environments. It’s also less appealing for California residents who lose access to both rider benefits.
Complementary Insurance Options
- For guaranteed income: Pair with a fixed indexed annuity (FIA) that offers a Guaranteed Lifetime Withdrawal Benefit (GLWB).
- For legacy protection: Consider permanent life insurance to pass on tax-free benefits to heirs.
- For healthcare costs: Combine with long-term care insurance or a hybrid LTC annuity to offset potential care expenses.
What Happens After the Term
At the end of the term, you can:
- Renew for another term at the current guaranteed rate.
- Withdraw funds without penalty during the 30-day window.
- Transfer or roll over the funds into another annuity to continue tax-deferred growth.
- Annuitize to receive income payments (though using a GLWB annuity typically provides more flexibility and death benefit protection).
What Happens At Death
If the owner passes away before income payments begin, the entire contract value is paid to beneficiaries as a lump sum. If the owner dies after annuitization, any remaining guaranteed payments continue to the beneficiaries according to the selected payout option.
Final Thoughts
The Axonic Waypoint MYGA is a dependable choice for those wanting predictable, contractually guaranteed returns from a stable insurer. It provides strong interest guarantees, flexible renewal options, and valuable liquidity features for long-term savers. While it lacks lifetime income provisions, it remains a strong CD alternative and a solid foundation for a low-risk portion of your retirement strategy.
Next Steps
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