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About American Century
American Century Life Insurance Company is a regional MYGA specialist based in Texas. Founded in 1940, American Century focuses on fixed annuities and multi-year guaranteed products. While smaller than legacy national carriers, they are known for competitive guaranteed rates and unusually broad issue age ranges that make their products accessible to younger savers and retirees up to age 90.
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How we scored them
Income Options65/100
Financial Strength68/100
Fees & Costs85/100
Flexibility78/100
Customer Service72/100
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The tradeoffs
What works
- Competitive guaranteed rates across 3-7-10 year terms
- Low $2,000 minimum premium (among the lowest in MYGA space)
- Unusually broad issue age range of 0–90
- Optional riders for rate/flexibility customization
- Clean, straightforward MYGA structure with no hidden complexity
What to watch
- B++ A.M. Best rating is below the A- to A+ range most MYGA competitors carry
- Smaller carrier with less brand recognition than national players
- Market value adjustment applies to early withdrawals
- Not available in all states
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What you could receive
Estimated guaranteed lifetime income based on a single premium payment. Actual rates may vary.
| Investment | Age | Monthly | Annual | Guarantee |
|---|---|---|---|---|
| $100,000 | 60 | $450 | $5,400 | Lifetime |
| $250,000 | 65 | $1,125 | $13,500 | Lifetime |
| $500,000 | 65 | $2,250 | $27,000 | Lifetime |
| $1,000,000 | 70 | $4,750 | $57,000 | Lifetime |
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Fee schedule
| Fee type | Amount | Description |
|---|---|---|
| Annual Contract Fee | $0 | No annual maintenance or administrative fees |
| Rider Fee | $0 | Optional riders have no explicit fee; rate adjustments are embedded in the quoted rate |
| Surrender Charge | 9% declining | Year 1 starts at 9%, declines by 1% per year (or per term period for longer contracts) |
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Early withdrawal penalties
Charges apply to amounts above the annual free withdrawal (typically 10%).
| Yr 1 | Yr 2 | Yr 3 | Yr 4 | Yr 5 | Yr 6 | Yr 7 | Yr 8 | Yr 9 | Yr 10 |
|---|---|---|---|---|---|---|---|---|---|
| 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0.5% |
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Best fit for these buyers
Rate-focused MYGA shoppers comfortable doing carrier due diligence
Buyers seeking low entry minimums ($2,000 or less)
Savers with broad age ranges (American Century accepts ages 0–90)
Investors diversifying across multiple MYGA carriers for competitive rates
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Frequently asked questions
Is American Century a good annuity company?
American Century earns an average rating of 3.6/5 across the 1 product we've reviewed, with an AM Best rating of B++ and S&P rating of Not Rated. Their financial strength is rated "Good" with $8+ Billion in total assets. American Century is particularly strong in overall value.
How much income can I get from a American Century annuity?
Income depends on your investment amount and age. For example, a $500,000 investment at age 65 could generate approximately $27,000 per year in guaranteed lifetime income. A $250,000 investment at the same age could generate about $13,500 per year.
What are the fees for American Century annuities?
American Century charges Annual Contract Fee: $0, Rider Fee: $0, Surrender Charge: 9% declining. Notably, there is no annual contract fee on the base contract, which is a competitive advantage.
What is the surrender period for American Century annuities?
American Century annuities typically have a 10-year surrender period. Charges start at 9% in year one and decline to 0.5% in the final year. Most products allow 10% annual free withdrawals without penalty.