AF Advantage® Variable Annuity
Product ID: 54
Type:
Variable Annuity
$201
0.36%
8 Years / 8.00%
Yes
Add to Compare
Add to Compare
Add to Favorites
Add to Favorites
Set as My Product
Set as My Product
Enrollment and Questions
Use the following contact information to enroll or ask questions.
E-mail:
Address:
Website:
Phone:
E-mail:
Address:
ATTN: Annuity Services Dept.
American Fidelity Assurance Company
9000 Cameron Parkway
Oklahoma City, OK 73114
American Fidelity Assurance Company
9000 Cameron Parkway
Oklahoma City, OK 73114
In-person:
Questions about enrollment?
View the Contact Information tab on the Vendor Details page for a list of office locations.
View the Contact Information tab on the Vendor Details page for a list of office locations.
- Product Details
- Fees and Charges
- Investment Options
The AF Advantage® Variable Annuity is a flexible premium variable and fixed deferred annuity policy. The policy is a contract between you, as the policy owner, and American Fidelity Assurance Company, as the insurance company. Through the annuity policy, we are able to provide a means for you to invest, on a tax-deferred basis, in our Guaranteed Interest Account, a fixed investment option, and in one or more of the sub-accounts, which are variable investment options.
The AF Advantage® Variable Annuity was designed for people seeking long-term tax-deferred earnings, generally for retirement savings. The tax-deferred feature is most attractive to people in high federal and state tax brackets. You should not buy the policy if you are looking for a short-term investment.
Select the topics below to expand and view additional product details
Customers investing in American Fidelity's AF Advantage® Variable Annuity have the opportunity to apply asset allocation models to their future contributions, existing values, or both. The asset allocation models are slightly more conservative versions of models developed by Standard and Poor's ®. The models differ based on the anticipated length of time the investment will be held and the stated risk tolerance of the customer.
After you allocate your money to different investment options, the performance of the different investment options may cause the allocation of your total investment to shift. At your direction, we will automatically rebalance your policy to return it to your original percentage allocations. If you request our asset rebalance service, we will make any necessary transfers on the first day after the end of your policy year. Asset rebalancing is only available during the accumulation phase. If you participate in the asset rebalancing program, the transfers we make for you are taken into account in determining any transfer fee, however, no other fees are charged. Asset Re-Balancing may not be used at the same time as Dollar Cost Averaging.
Our automatic dollar cost averaging (DCA) system allows the transfer of an established amount of money on a regular basis from the Guaranteed Interest Account (GIA) to one or more of the investment options. A minimum balance of $10,000 is required to be held in the GIA to enroll. The minimum amount that may be transferred from the GIA to an investment option is $500. Only the GIA can be used as a source of the transfer. By transferring the same amount on a regular schedule instead of transferring the entire amount at one time, you may be less susceptible to market fluctuations. Automatic DCA is only available during the accumulation phase. Any transfers made under a DCA program are taken into account in determining any transfer fee. DCA cannot be used at the same time as Asset Rebalancing.
12 transfers per year at no charge. $25 dollars or 2% of the amount transferred, whichever is less will apply.
The greater of current contract value or all premiums received less withdrawals.
After the first policy year, and if your employer's Plan rules permit, we may make a loan to you at any time before annuity payments begin. The loan cannot be more than $50,000 or one-half of the value of your policy, whichever amount is less. Under certain circumstances, the $50,000 limit may be reduced. The minimum loan we will make is $1,000. The amount of your loan will be transferred on a pro-rata basis from your current investment option to a Guaranteed Interest Account designated for loans. We charge an interest rate of 5% on any loans that you take against your policy. Loans must be repaid in equal monthly payments over a period of not more than five years.
Hardship distributions are limited to those individuals that have incurred a hardship due to unpaid family medical bills, education expenses over the secondary level, purchase of a primary residence, to prevent eviction from or foreclosure of primary residence, burial or funeral expenses, or expenses incurred as the result of certain casualty damage to the employee's primary residence subject to plan provisions.
With the Secure 2.0 Act being signed into law on December 29, 2022, Plan sponsors may rely on employee self certification that they meet eligibility for specified hardship withdrawal reasons from a 403(b) plan.
Beginning in 2023 the Secure 2.0 Act increased the age that participants born between 1951 - 1959 must begin taking Required Minimum Distributions (RMDs) to age 73. Retirees or individuals who turn 72 on or after January 1, 2023 need to begin taking RMDs at age 73. Anyone who turned age 72 before December 31, 2022 is unaffected by this change. Active employees may be able to delay RMDs until they separate from service.
Riders are amendments to the annuity contract that typically add to your costs. make sure you inquire about any additional costs. The following riders exist for this product:
You may return the policy to us or to our agent within 20 days after it is delivered. If returned, the policy will be void from the beginning and we will refund the greater of: the purchase payments paid; or, the account value as of the earlier of the date we receive the policy at our home office, or the date our agent receives the policy.
Income payments will be made for the joint lifetimes of two payees with payments reducing to one-half of the original amount when either payee dies. No payments will be due after the surviving payee's death. Rates for different age combinations or other forms of joint life income can be furnished upon request.
Income payments will be made for the life of the payee. No payments would be due after the death of the payee.
Income payments will be made for the life of the payee. Upon the death of the payee, payments would continue to the beneficiary for a specified period of time. The length of the period certain is predetermined as of the annuity's start date. If the payee should live beyond the specified period certain, then payments would cease upon the death of the payee.
The payee shall receive a life annuity of a specific amount with the guarantee that if at death, the amount of the original balance has not been received by the Annuitant, the payments would continue to the named beneficiary until the combined amounts received by the payee and the beneficiary equal the original balance. In the event the beneficiary predeceases the payee and the payee has not designated a successor beneficiary, the remaining payments shall be paid to the estate of the payee.
Under Internal Revenue Code Section 403(b), lump sum distributions are permitted in the following instances: 1) Participant attains age 59 1/2. 2) Participant has separated from employment. 3) Participant is permanently and totally disabled as defined by Section 72(m)(7) of the Internal Revenue Code. 4) Participant has experienced a financial hardship as defined by the Internal Revenue Code as: a) unpaid family medical bills, b)unpaid family education expenses over the secondary level, c) purchase of a primary residence, d) to prevent the eviction or foreclosure of the participant's primary residence, e) burial or funeral expenses, f) expenses incurred as result of certain casualty damage to the employee's primary residence.
The payee would recieve either monthly, quarterly, semi-annual, or annual payments from the balance of the account over an elected number of years. If the payee dies while receiving these guaranteed installments, any unpaid guaranteed installments shall be continued to the benenficiary, if living at the time of death of the payee, otherwise the commuted value will be paid in one lump sum to the executors or administrators of the estate of the payee.
All 403(b) products contain fees. The amount of fees varies greatly depending on the product. A slight increase in fees can
substantially reduce the growth in your account which will reduce your income in retirement. To learn more about the impact
of fees, and the different types of fees please refer to the
Explanation of Fees piece located in the
Help & Resources.
Fees
|
|
0.15% | Annually | Percentage of Annual Assets | No | No | Yes |
|
|
$15.00 | Annually | Flat Dollar Amount | No | No | Yes |
|
|
0.10% | Annually | Percent of Amount Invested | No | No | Yes |
|
|
1.25% | Annually | Percentage of Annual Assets | No | No | Yes |
Surrender Charges
| Surrender Period* | Surrender Percentage |
|---|---|
| 1 | 8.00% |
| 2 | 7.00% |
| 3 | 6.00% |
| 4 | 5.00% |
| 5 | 4.00% |
| 6 | 3.00% |
| 7 | 2.00% |
| 8 | 1.00% |
*Expressed in contract years
Exceptions to the Surrender Charge:
Other Restrictions:
Percent of contract value:
10.00%
Death:
Yes
Disability:
Yes
Withdrawal charges will not be applied if payments are made under an annuity option providing at least seven annual payments or 72 monthly payments.
10% free withdrawal becomes effective after first contract year.
