Athene MaxRate® Annuity Review: Everything You Need to Know

Overview

The Athene MaxRate® is a Multi-Year Guarantee Annuity (MYGA) designed to provide policyholders with secure and dependable asset growth. This annuity ensures a guaranteed fixed interest rate over a chosen term period, offering financial stability and flexibility for retirement planning.

Key Features

1. Guaranteed Interest Rates

• Policyholders can choose between 3, 5, or 7-year term periods.
• The initial premium earns a guaranteed fixed interest rate for the selected term.
• Additional premiums earn interest at a rate set annually, which will always meet or exceed the guaranteed minimum.

2. Tax-Deferred Growth

• Interest earned accumulates tax-deferred, allowing for greater compound growth over time.
• Taxes are only paid upon withdrawal, maximizing investment potential.

3. Flexible Premium Options

• The annuity can be purchased with an initial premium ranging from $10,000 to $1 million (higher amounts require company approval).
• Additional premiums must be at least $1,000, with a cap of $100,000 per rolling 12-month period.

4. Withdrawal Options & Liquidity

• Policyholders can withdraw up to the Free Withdrawal amount annually without penalty.
• Required Minimum Distributions (RMDs) from tax-qualified accounts are included in Free Withdrawals.
• After the withdrawal charge period, full access to accumulated value is available without penalties.

5. Safety and Security

• The annuity’s principal and earned interest are protected from market downturns.
• Guaranteed growth without exposure to stock market risks.

6. Waivers for Emergencies

• Confinement Waiver: Allows withdrawal of up to 100% of the annuity’s value if confined to a qualified care facility for at least 60 consecutive days (after the first contract year).
• Terminal Illness Waiver: Allows full withdrawal if diagnosed with a terminal illness expected to result in death within one year.

7. Legacy & Income Benefits

• Death Benefit: Ensures beneficiaries receive the greater of the annuity’s accumulated value or minimum guaranteed contract value.
• Annuity Payout Options: Policyholders can choose lifetime income options upon annuitization.

Potential Drawbacks

❌ Withdrawal Charges & Market Value Adjustment (MVA)

• Early withdrawals beyond the penalty-free amount may incur withdrawal charges (up to 10% in early years).
• An MVA applies to excess withdrawals or full surrenders, which may increase or decrease the amount received based on interest rate fluctuations.

❌ Limited Growth Potential

• While safe, MYGAs generally offer lower returns compared to market-linked annuities or other investments.

❌ Not Available in All States

• Certain features may not be available in CA, MA, and other states.

Who Should Consider Athene MaxRate?

✅ Retirees or pre-retirees looking for guaranteed growth with no market risk.
✅ Individuals who want tax-deferred earnings and a predictable fixed return.
✅ Those seeking emergency access through penalty-free withdrawals and waivers.
✅ Investors looking for a safe place to park savings with competitive fixed returns.

Final Verdict

The Athene MaxRate® MYGA is a strong choice for conservative investors who prioritize stability, security, and guaranteed returns over market-driven growth. While it lacks the upside potential of variable or indexed annuities, it provides reliable accumulation, tax advantages, and flexible liquidity options.