AIG Assured Edge Income Achiever Annuity is a traditional fixed annuity with a flexible guaranteed lifetime withdrawal benefit.
Generate predictable retirement income — for life.
Assured Edge Income Achiever is a tax-deferred fixed annuity that features a flexible guaranteed lifetime withdrawal benefit (GLWB). AIG lifetime income annuity can help you:
- Guarantee your retirement income—for life
- Grow your future lifetime income based on a 6% income growth rate each year that you wait to activate lifetime income
- Maintain access to your money and protect your principal
- Assured Edge Income Achiever can help you prepare today for a more secure retirement tomorrow.
- Assured Edge Income Achiever is available to clients issue age 50-80
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About AIG Annuities
Guarantee your retirement income—for life.
AIG’s Assured Edge Income Achiever can provide you with income certainty, along with the flexibility to receive guaranteed lifetime income now or in the future. You can elect to activate lifetime income when the time is right for you.
Once you start taking lifetime income, you can count on guaranteed income for as long as you—or you and your spouse—live, based on your choice of covering one person or two, provided your withdrawals are within the parameters of the guaranteed lifetime withdrawal benefit. You can receive your income on a monthly, quarterly, semi-annual, or annual basis. The payment continues throughout the lifetime of the covered person(s), even if the contract value is completely depleted due to your lifetime income withdrawals.
You can start receiving lifetime income as early as age 50. Use our AIG annuity calculator to solve your lifetime income needs.
Flexibility when it matters most
If you experience a life change event before activating income, Assured Edge Income Achiever provides you with the flexibility to add or remove a covered person. Life change events are defined as marriage, divorce, or death.
You also have the opportunity to add or remove a covered person at the income activation date, subject to certain limitations. If you make a change, at least one of the originally covered persons named at issue must remain as one of the covered persons. Also, any new covered person added:
- Must have been at least age 50 as of the date the contract was originally issued
- Cannot be older than age 80 at the time you add them to the contract
In the event there is more than one covered person, they must be married to each other. Available coverage options may vary depending upon individual circumstances as of the activation date. Changes to covered person(s) may increase or decrease your GLIA. Once you activate lifetime income, the covered person(s) cannot be changed for any reason.
Note: Changes to covered person(s) may increase or decrease your guaranteed lifetime income amount.
The Fee
A guaranteed lifetime withdrawal benefit is automatically included in the contract when you purchase Assured Edge Income Achiever.
The annual fee for the benefit is 0.95%. The fee is calculated as a percentage of the contract value and deducted from each anniversary’s contract value. Once the contract is issued, the fee will never change.
The guaranteed lifetime withdrawal benefit can’t be canceled within the first five contract years unless you surrender the contract. After the fifth contract anniversary, you may cancel the guaranteed lifetime withdrawal benefit. Once canceled, the fee for the benefit no longer applies, and the guaranteed lifetime withdrawal benefit cannot be reinstated.
Additional information about the guaranteed lifetime withdrawal benefit:
- The covered person(s) under the guaranteed lifetime withdrawal benefit can be either a single person or spouses (married to each other) for joint covered persons.
- Single covered person: Lifetime withdrawal benefits are based on the lifetime of the single covered person. Upon the death of the covered person, the guaranteed lifetime withdrawal benefit terminates.
- Joint covered persons: Joint owners who are spouses or a single owner with the spouse as the sole primary beneficiary may choose to be joint covered persons. At the first death, the surviving spouse must continue the contract to receive lifetime benefits. Upon the death of the surviving spouse, the guaranteed lifetime withdrawal benefit terminates.
- The guaranteed lifetime withdrawal benefit’s annual fee will reduce the contract’s value, but not the income credit or the annual guaranteed lifetime income amount.
Know today what your retirement income can be.
The maximum amount that may be withdrawn each contract year under the guaranteed lifetime withdrawal benefit is the guaranteed lifetime income amount (GLIA).
The company periodically sets income percentages. Percentages will vary based on age at purchase and whether income is based on single or joint coverage. The income percentage is not a rate of return and is not added to the contract value.
The income percentage is a factor used to determine the initial guaranteed lifetime income amount. The initial guaranteed lifetime income amount is set at the end of the eligible premium period (60 days after contract issue). It equals the total eligible premiums multiplied by an income percentage based on your age or the age of the younger person at issue if you choose joint covered persons.
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Grow future lifetime income each year.
When you purchase the Assured Edge Income Achiever, your guaranteed lifetime income amount will increase based on a 6% income growth rate credit each year until you activate lifetime income. The income credit is a dollar amount calculated by multiplying the initial GLIA by the 6% income growth rate. The opportunity for annual increases ends once lifetime income is activated.
When you’re ready to start taking lifetime income
To activate guaranteed lifetime income from your Assured Edge Income Achiever fixed annuity, contact our service center to request the income activation form. When the completed form has been submitted, you will start receiving lifetime income withdrawals based on your chosen start date and payment frequency.
Once the first lifetime income withdrawal is taken, your guaranteed lifetime income amount is set and will no longer increase with an income credit. However, this amount can decrease if you withdraw more than the guaranteed lifetime income amount or permitted Required Minimum Distributions (RMDs), if greater.
For purposes of the GLWB, permitted RMDs are based on this contract and do not exceed the greater of the GLIA or the RMD amount as calculated by us.
- Before lifetime income is activated – Withdrawals will reduce the income credit and the GLIA proportionally, thereby reducing future guaranteed lifetime income.
- After lifetime income is activated – After the income activation date, any withdrawal that exceeds the GLIA, except for permitted RMDs, will reduce the GLIA. During the initial interest guarantee term, withdrawals may be subject to any applicable market value adjustment (MVA). Withdrawals other than lifetime income may reduce lifetime benefits in an amount greater than the actual withdrawal if the contract value remaining is less than the GLIA. Additionally, if a withdrawal reduces your contract value to zero, the contract and GLWB will terminate.
Additional information about the guaranteed lifetime withdrawal benefit:
- The income growth rate is not a rate of return, and the income credit is not added to the contract value.
- Guaranteed lifetime income continues throughout the lifetime of the covered person(s) even if the contract value is completely depleted. If there is a withdrawal other than lifetime income that reduces the contract value to zero, the benefit is automatically terminated.
Maintain access to your money and protect your principal.
Assured Edge Income Achiever offers you the security and flexibility you may be seeking for a portion of your retirement assets, along with valuable protection for your beneficiaries.
You can add premiums to your AIG fixed annuity during the first 60 days after the contract issue date. These premiums will be included in the calculation of your contract value and initial guaranteed lifetime income amount.
Access to your money
AIG Assured Edge Income Achiever gives you the flexibility to choose when you activate lifetime income while maintaining access to your contract value. Keep in mind, if you take any money out of your annuity before activating lifetime income, the withdrawal will proportionately reduce the income credit and GLIA. This includes permitted RMDs which do not incur a market value adjustment. After the income activation date, any withdrawal that exceeds the GLIA, except for permitted RMDs, will also reduce the GLIA.
If you need access to your contract value before or after activating lifetime income, Assured Edge Income Achiever allows for certain withdrawals that are available without a market value adjustment (MVA). These withdrawals are referred to as penalty-free though they may reduce the GLIA:
- In the first contract year, you may take annual withdrawals of up to 10% of the contract value as of the previous anniversary. If a withdrawal occurs in the first contract year, the withdrawal amount is based on the total eligible premiums received at the withdrawal time.
- Withdrawals took to satisfy permitted RMDs.
- Withdrawals up to the guaranteed lifetime income amount after lifetime income withdrawals have been activated.
- Withdrawals took under the following waivers:
- Extended Care
- Terminal Illness.
- Withdrawals are subject to a $250 minimum (unless otherwise noted).
Additional information about Assured Edge Income Achiever.
A guaranteed death benefit to help provide for your beneficiaries
The contract includes a guaranteed death benefit that provides for your beneficiaries to be paid the greater of the contract value (without MVA), or the minimum withdrawal value, upon the owner’s death. You should also know that annuities that have a specified beneficiary may avoid the probate process.
American General (AIG) Life Insurance is also an inexpensive way to leave a death benefit to beneficiaries.
A minimum withdrawal value
Upon full surrender, payment of a death benefit, or if you choose to annuitize the contract, you (or your beneficiaries, as applicable) will never receive less than 87.5% of eligible premiums, less prior withdrawals (excluding any MVA), earning an annual rate as specified in your contract.
Seven-year initial interest rate guarantee term
AIG Assured Edge Income Achiever Fixed Annuity features an initial seven-year interest rate guarantee period. After the initial guarantee period expires, AIG Fixed Annuity interest rates will be set annually. Interest is credited to the contract daily to achieve an annual yield equal to the declared rate. The money must remain in the annuity (without any withdrawals) to achieve that rate for the entire year. The interest credited does not apply to the guaranteed lifetime withdrawal benefit.
Market value adjustment (MVA)
Withdrawals above the penalty-free withdrawal amount during the seven-year initial interest rate guarantee term may be increased or decreased by an MVA. The MVA is based on a formula designed to react to changes in interest rates at a withdrawal time.
Generally, if interest rates have risen since the contract issue date, the MVA can decrease the amount you will receive, subject to certain limits. If interest rates have fallen, the MVA can increase the amount you receive up to a maximum percentage.
- An MVA will apply to withdrawals above the penalty-free withdrawal amount made during the first seven years.
- An MVA will not apply to:
- Withdrawals less than or equal to the GLIA after activating lifetime income
- 10% penalty-free withdrawals
- Death benefit
- Annuitization
- Permitted RMDs from qualified contracts3
- The minimum withdrawal value under the contract
Withdrawal charge waivers
The following riders allow you to make withdrawals without MVA decrease when certain conditions are met. There is no charge for these riders. Details about utilizing the riders, including qualifying conditions and waiting periods, are outlined in the riders. These riders are not available in all states. If you choose to withdraw under these riders, they may reduce benefits under the GLWB feature.
- Extended Care: The owner must receive extended care for at least 90 consecutive days, beginning after the first contract year. The extended care may not have begun before the contract date.
- Terminal Illness: The owner must be initially diagnosed with a terminal illness after the contract date. Only one partial withdrawal or a full withdrawal is permitted.
