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American Legend 7 A fixed-indexed annuity
Photo submitted by Catherine from Connecticut, valued annuity customer since 2009.
Confidently plan for your future with the American Legend 7
When you envision a future that fulfills you, maybe you see yourself traveling, cooking, spending time with family or discovering a new hobby. Whatever it is, our goal is to help you navigate your future with confidence.
THE AMERICAN LEGEND 7 FIXED-INDEXED ANNUITY OFFERS:
Growth opportunity You can allocate your money to interest strategies that may help you accumulate additional savings.
Protection from loss Regardless of market conditions, you won’t lose the money you contribute to your annuity unless you take a withdrawal or surrender your annuity during its early withdrawal charge period.
Guaranteed income When you’re ready to turn the money you’ve accumulated in your annuity into guaranteed income, you can select from a variety of options, including payments that will last for the rest of your life.
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An annuity is a financial product that’s designed to protect and grow your money, and then provide a stream of guaranteed income. Annuity basics
HERE'S HOW IT WORKS:
You purchase an annuity by making a payment to an insurance company.
Your annuity can grow in value over time.
When you're ready to start receiving income, your annuity can be turned into a steady stream of payments.
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Other than pensions, annuities are the only products that provide guaranteed lifetime income.
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Choose how you want your money to grow
Fixed-indexed annuities offer multiple interest strategies to help you build your savings.
• A declared rate strategy allows you to grow your money at a fixed interest rate that is set at the beginning of each term.
• Indexed strategies offer you the unique opportunity to earn interest based, in part, on market performance without the risk of market loss.
You have the flexibility to choose the strategies that are right for you. We know your needs may change over time, so you can revisit your strategy selections at the end of each term.
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American Legend 7 strategy options
HOW LONG IS THE RATE GUARANTEED?
HOW OFTEN IS INTEREST CREDITED?
STRATEGY TYPES
Fixed interest rate is set at beginning of each one-year term and guaranteed for that term year
Declared Rate
Daily
INDEXED STRATEGIES
Cap or participation rate is set at beginning of each
One-year point-to-point
Annually, on the last day of the one-year term
one-year term and guaranteed for that term year
Cap is set at beginning of the seven-year term and guaranteed for the entire seven-year term
Seven-year cap lock annual point-to-point
Annually, on the last day of each term year
See the next page for more information on how the indexed strategies work.
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Indexed strategies offer growth opportunity that’s tied to market performance Money in an indexed strategy earns interest based on positive market performance. Interest is credited on the last day of each term year and is guaranteed to never be less than 0%. The American Legend ® 7 offers point-to-point indexed strategies. These strategies compare the closing value of an index — such as the S&P 500 ® — at the end of a term year to the closing value on the first day of the term year. If the result is positive, interest is credited. If the result is negative, the credited interest rate is 0%. The amount of interest credited at the end of the term year is limited by either a cap or a participation rate.
• A cap is the maximum interest rate that will be credited for a term year.
• A participation rate is the percentage of a positive index change that will be credited for a term year.
Any interest credited to your account value is locked in at the end of each term year and cannot be lost due to future market performance.
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Indexed strategies also keep your money protected from market declines Not only do indexed strategies provide the opportunity to earn interest based on market growth, but they keep your money protected in the event of market declines. When index performance is positive, interest is credited to your annuity and it's locked in. This means, your annuity cannot lose value due to future market performance. On the other hand, if index performance is negative, you won't lose money. But, you can still earn interest during future terms. Let’s take a look at how it works.
HOW INDEXED STRATEGIES WORK
ACCOUNT VALUE
INDEX PERFORMANCE
YEAR 1
YEAR 2
YEAR 3
YEAR 4
YEAR 3
YEAR 2
YEAR 1
Index performance is positive. Your annuity earns interest that is locked in and protected from future index declines.
Index performance is negative.
The index begins to recover. Your annuity earns
Your principal and earnings remain protected, leaving your account value unchanged .
interest, even though the index has not made up its previous loss.
The example above is for illustrative purposes only. It does not reflect actual index performance.
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But wait, there’s more
The American Legend 7 offers these additional benefits to help you confidently navigate your future.
Tax treatment that allows faster growth You don’t pay taxes on the interest your annuity earns until you start receiving payments or take a withdrawal. That means your money can grow at a faster rate than it would in a taxable product.
Leave a legacy for your loved ones As you’re planning for the future, you probably want to know what will happen to your money when you’re gone. With the American Legend 7, any death benefit is paid directly to your beneficiaries, which allows them to receive your financial legacy without the cost and delays of probate.
This information is not intended or written to be used as legal or tax advice. It was written solely to provide general information and support the sale of annuity products. You should seek advice on legal or tax questions based on your particular circumstances from an attorney or tax advisor. For qualified contracts, the full amount withdrawn is generally subject to income tax. For other contracts, only the gains are subject to income tax. If you are under age 59½, the taxable amount is also generally subject to a 10% federal penalty tax.
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It’s important to consider your liquidity needs. The American Legend 7 is intended to be a long-term product. However, you will have access to a portion of your money each year with penalty-free withdrawals. During the first contract year, you may withdraw up to 10% of your purchase payments. After the first contract year, 10% of the account value on the most recent contract anniversary may be withdrawn.
It’s important to note withdrawals in excess of this amount may be subject to early withdrawal charges and a market value adjustment. Early withdrawal charges and market value adjustments end after seven years.
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MassMutual Ascend
Taking financial futures above and beyond At MassMutual Ascend, we are committed to going above and beyond – so when it comes to your financial future, the impossible feels possible. As a leading provider of annuities, we see our products as more than just contracts. Our annuities are transparent and easier to understand, so you always know what to expect. We have a long history of financial strength and stability. We’ve received an “A” or higher rating by AM Best for more than 40 years, so you can have confidence knowing we’ll be here when you need us. We are a wholly owned subsidiary of MassMutual, one of the largest life insurance companies in the U.S., founded in 1851. And finally, everything we do is rooted in a culture of service. From our people to our technology, we strive to always provide you with what you need, when you need it. The status quo isn’t a status we ever want. At MassMutual Ascend, we’ll always be in pursuit of better – so you can navigate your future with confidence.
Learn more at MassMutualAscend.com.
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American Legend 7 features
ISSUE AGES
Qualified: 0–85 Non-qualified: 0–85 Inherited IRA: 0–75
Inherited non-qualified : 0–75 Issue ages may vary by state.
PURCHASE PAYMENTS
You can purchase this annuity with an initial purchase payment of $10,000 or more. You can add to your annuity at any time with additional purchase payments of at least $2,000.
FEES
There are no upfront charges. All your money goes to work for you.
INTEREST STRATEGIES
• Declared rate • S&P 500 ® 1-year point-to-point with cap • S&P 500 ® 7-year cap lock annual point-to-point • S&P 500 Risk Control 1-year point-to-point with participation rate
• iShares U.S. Real Estate 1-year point-to-point with cap Available strategies may vary by state and by distribution.
TERM
• The seven-year cap lock strategy has a seven-year term. The cap is locked in for the entire seven-year term. This strategy may only be selected during the first contract year. • All other strategies have a one-year term. • With all indexed strategies, interest is credited annually on the last day of each term year. • You can change your strategy allocations at the end of each one- or seven-year term. Funds held in the seven-year strategy will automatically reallocate to the S&P 500 ® 1-year strategy, unless you elect otherwise. During the first contract year, you may withdraw up to 10% of your purchase payments. After the first contract year, 10% of the account value on the most recent contract anniversary may be withdrawn. Amounts withdrawn in excess of the penalty-free withdrawal allowance may be subject to early withdrawal charges and a market value adjustment. During the first seven contract years, an early withdrawal charge starting at 9% is applied to surrenders and withdrawals that exceed the 10% penalty-free amount. All charges end after seven years.
PENALTY-FREE WITHDRAWALS
EARLY WITHDRAWAL CHARGES
Contract year
1 2 3 4 5 6 7 8+ 9% 8% 7% 6% 5% 4% 3% 0%
Early withdrawal charge
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MARKET VALUE ADJUSTMENT
A market value adjustment (MVA) will apply if you surrender your contract during the first seven years. The MVA is calculated by comparing the value of a specific index at the time we receive each purchase payment to the value of the index when you choose to surrender your contract. This can result in an increase to your surrender value during a period of decreasing rates, or a decrease to your surrender value during a period of increasing rates. The MVA will also apply to withdrawals in excess of the 10% free-withdrawal allowance during the first seven contract years. The amount payable to you if you surrender your contract will never be less than the Guaranteed Minimum Surrender Value (GMSV). The GMSV is based on 87.5% of your purchase payments, plus interest credited daily at a guaranteed minimum interest rate. Ask your financial professional for the rate that will apply to your contract. This means, in certain situations when your contract earns no interest due to flat or declining index performance, the amount payable upon surrender may still be greater than the amount of money you contributed to your annuity. It’s important to remember the GMSV is reduced by prior withdrawals. The GMSV will not be less than the minimum values required by the state in which your annuity is issued. Fixed period: You receive income benefit payments for a fixed period of time that you select. Life or life with a minimum fixed period: You receive income benefit payments for life. If you select a minimum fixed period of time and pass away before the end of the period, the remaining income benefit payments are paid to the person you designate. Joint and one-half survivor: Income benefit payments are guaranteed for your life and the life of a designated joint annuitant. If you are survived by the joint annuitant, he or she will receive 50% of the income benefit payment for life. Extended care waiver rider: After the first contract year, if you are confined to a nursing home or long-term care facility for at least 90 consecutive days, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge. Terminal illness waiver rider: After the first contract year, if you are diagnosed by a physician as having a terminal illness, you have the option to withdraw up to 100% of the account value without incurring an early withdrawal charge. A terminal illness is defined as having a prognosis of survival of 12 months or less, or a longer period as required by state law. Extended care and terminal illness waiver riders are not available in Massachusetts. In California, the Extended Care Waiver Rider has been replaced with the Waiver of Early Withdrawal Charges for Facility Care or Home Care or Community-Based Services Rider, which provides for a waiver of early withdrawal charges under an expanded variety of circumstances.
GUARANTEED MINIMUM SURRENDER VALUE
INCOME PAYOUT OPTIONS
INCLUDED WAIVER RIDERS
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The S&P 500 Risk Control 10% Index refers to the S&P 500 Average Daily Risk Control 10% USD Price Return Index. For more information, visit US.SPIndices.com and search keyword SPXAV10P. For more information on the S&P U.S. Retiree Spending Index, visit US.SPIndices.com and search keyword SPRETIRE. For more information on the iShares U.S. Real Estate ETF, visit iShares.com and search ticker symbol IYR. SPDR Gold Shares refer to units of interest in an exchange traded fund that reflect the market value of gold bullion. The S&P 500 Index, the S&P 500 Average Daily Risk Control 10% Price Return Index and the S&P U.S. Retiree Spending Index are products of S&P Dow Jones Indices LLC (“SPDJI”), and have been licensed for use by MassMutual Ascend. Standard & Poor’s ® and S&P 500 Average Daily Risk Control 10%™, SPDR ® and STANDARD & POOR’S DEPOSITORY RECEIPTS ® are trademarks of Standard & Poor’s Financial Services LLC, Dow Jones ® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by MassMutual Ascend. MassMutual Ascend’s products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties makes any representation regarding the advisability of investing in such products nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index, the S&P 500 Average Daily Risk Control 10% Price Return Index or the S&P U.S. Retiree Spending Index. The iShares U.S. Real Estate ETF is distributed by BlackRock Investments, LLC. iShares ® , BLACKROCK ® , and the corresponding logos are registered and unregistered trademarks of BlackRock, Inc. and its affiliates (“BlackRock”), and these trademarks have been licensed for certain purposes by MassMutual Ascend. MassMutual Ascend annuity products are not sponsored, endorsed, sold or promoted by BlackRock, and purchasers of an annuity from MassMutual Ascend do not acquire any interest in the iShares U.S. Real Estate ETF nor enter into any relationship of any kind with BlackRock. BlackRock makes no representation or warranty, express or implied, to the owners of any MassMutual Ascend annuity product or any member of the public regarding the advisability of purchasing an annuity, nor does it have any liability for any errors, omissions, interruptions or use of the iShares U.S. Real Estate ETF or any data related thereto. MassMutual Ascend is not an investment adviser and the information provided in this document is not investment advice. You should consult your investment professional for advice based on your personal circumstances and financial situation. Please note, this is a general description of the product. Please read your contract, including the endorsements and riders, for definitions and complete terms and conditions, as this is a summary of the annuity’s features. For use with contract forms P1470017NW, P1470017ID and P1470017OR, endorsement forms E6043517NW, E6043617OR, E6043717OR, E6043917OR, E6051217OR, E6053117OR , E6053217OR and ICC20-E6066420NW, and rider forms R6032310NW and R6032410NW (not available in Massachusetts) R6032310OR and R6032410OR. Contract, endorsement and rider form numbers may vary by state. Products and features may vary by state, and may not be available in all states. See specific product disclosure document for details. All guarantees based on the claims-paying ability of MassMutual Ascend. Products issued by MassMutual Ascend Life Insurance Company (Cincinnati, Ohio), a wholly owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual).
NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION • NOT FDIC OR NCUA-INSURED • NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY • NOT GUARANTEED BY ANY BANK OR CREDIT UNION
© 2022 MassMutual Ascend Life Insurance Company, Cincinnati, OH 45202. All rights reserved. www.MassMutualAscend.com B1471522NW
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