Comprehensive Review: The Waypoint MYGA by AmFirst & Axonic

A Detailed Guide to Securing Guaranteed Fixed-Rate Returns for Your Retirement

In an era of economic volatility, securing a predictable financial future is a primary goal for many retirees and pre-retirees. The Waypoint MYGA, issued by AmFirst Insurance Company and serviced by Axonic Insurance Services, offers a compelling solution: a Single Premium Deferred Annuity designed to protect principal while providing steady growth.

This guide breaks down everything you need to know about the Waypoint MYGA, from interest rate guarantees to liquidity options and tax advantages.

Executive Summary: What is the Waypoint MYGA?

The Waypoint MYGA is a fixed annuity that functions similarly to a "CD for retirement." It allows you to lock in a guaranteed fixed rate of return for a specific period, protecting your assets from stock market volatility.

  • Issuer: AmFirst Insurance Company (Rated "A- Excellent" by AM Best).
  • Administrator: Axonic Insurance Services.
  • Product Type: Single Premium Deferred Annuity (SPDA) with Market Value Adjustment (MVA).
  • Best For: Individuals seeking tax-deferred growth and principal protection without the risk of market losses.

Key Features and Benefits

  1. Guaranteed Rate Periods

Unlike variable products that fluctuate with the market, the Waypoint MYGA offers a fixed rate of return for the duration of the contract. You can select a guarantee period that aligns with your financial timeline:

  • Available Terms: 2, 3, 5, 7, or 10 years.
  • Certainty: The rate is guaranteed for the entire selected term, taking the guesswork out of your accumulation strategy.
  1. 100% Principal Protection

One of the strongest features of the Waypoint MYGA is safety. Regardless of economic volatility or stock market crashes, your principal premium is 100% protected. This makes it an ideal "safe bucket" asset within a diversified portfolio.

  1. Tax-Deferred Growth

Interest earned within the Waypoint MYGA is tax-deferred, meaning you do not pay taxes on the growth until you withdraw the money. This allows your money to compound faster compared to taxable accounts like bank CDs, where interest is taxed annually.

Contract Specifications at a Glance

Before purchasing, it is vital to understand the eligibility and funding parameters:

Feature

Specification

Minimum Premium

$20,000

Maximum Premium

$1,000,000 (Amounts over $1M require approval)

Issue Ages

Up to age 89 and 364 days

Account Types

Non-Qualified, IRA, Roth IRA, 401k, SEP IRA, Inherited IRA

Joint Ownership

Allowed (Joint owner must be a spouse)

Liquidity: Accessing Your Money

While annuities are designed for long-term holding, the Waypoint MYGA provides flexibility if you need access to cash.

Penalty-Free Withdrawals

  • After Year 1: You can withdraw up to 10% of the contract value (based on the prior anniversary) annually without a surrender charge or MVA.
  • Frequency: You may take multiple withdrawals per year (minimum $500) up to the free 10% limit.
  • RMD Friendly: Required Minimum Distributions (RMDs) are supported. RMDs apply to tax-qualified accounts (like IRAs) and the annuity allows these withdrawals.

Surrender Charges

If you withdraw more than the 10% free allowance during the guarantee period, a surrender charge applies to the excess amount. The charges decrease over time.

Surrender Charge Schedule:

  • 2-Year Term: 9% (Year 1), 8% (Year 2).
  • 3-Year Term: 9%, 8%, 7%.
  • 5-Year Term: 9%, 8%, 7%, 6%, 5%.
  • 7-Year Term: 9%, 8%, 7%, 6%, 5%, 4%, 3%.
  • 10-Year Term: Starts at 9.20% and scales down to 0.90% in Year 10.

Note: Surrender charges may differ in California. Always check the specific Product Spec Sheet for CA residents.

Protection Riders (Safety Valves)

The Waypoint MYGA includes specific riders that waive surrender charges during improved hardship events. Note: These specific riders are not available in California.

  1. Nursing Home Confinement Rider

Surrender charges and MVA are waived if the owner is confined to an eligible nursing home for at least 90 consecutive days.

  • Conditions: Must be under age 80 at contract issue and confinement must start after the first contract year.
  1. Terminal Illness Rider

If you are diagnosed with a terminal illness (life expectancy of 12 months or less), you may request a full surrender or partial withdrawal with no penalties.

  • Conditions: Must be under age 80 at contract issue and have been the owner continuously.

Comparison: Waypoint MYGA vs. Bank Products

Why choose an annuity over a savings account or CD? The brochure highlights three distinct advantages:

  1. Tax Deferral: Unlike CDs/Savings where interest is taxed yearly, MYGA growth is tax-deferred.
  2. Liquidity: CDs often penalize any early withdrawal. The Waypoint MYGA allows a 10% free withdrawal annually after the first year.
  3. Safety: While banks have FDIC insurance, the Waypoint MYGA is backed by the financial strength of AmFirst Insurance Company.

What Happens at the End of the Term?

As your guarantee period nears its end, you have a 30-day window to make a decision. You will receive a notification with renewal rates and options, which include:

  1. Renew: Continue the contract for the same period at the new renewal rate.
  2. Change Terms: Switch to a different guarantee period available at that time.
  3. Cash Out: Surrender the contract completely with no penalties.
  4. Annuitize: Convert the value into a stream of income (Settlement Option).
  5. Partial Withdrawal: Take some cash penalty-free and renew the rest.

Important: If you do nothing, the contract automatically renews for the same period at the new declared rate.

Important Considerations

  • Market Value Adjustment (MVA): If you withdraw more than the free allowance during the contract term, an MVA may apply. This adjusts the withdrawal amount based on interest rate environments at the time of withdrawal.
  • Early Withdrawal Penalties: Withdrawals before age 59½ may be subject to a 10% IRS tax penalty in addition to standard income taxes.
  • California Residents: Be aware that surrender charge percentages differ, and the Nursing Home and Terminal Illness riders are not available in your state.

Frequently Asked Questions (FAQ)

Q: Who is the Waypoint MYGA best suited for?

A: It is ideal for conservative savers looking for guaranteed growth, protection from market crashes, and tax-deferred accumulation.

Q: Can I withdraw money if I have an emergency?

A: Yes. After the first year, you can access up to 10% of your account value annually without penalty. Withdrawals beyond that amount are subject to surrender charges.

Q: Is the death benefit taxable?

A: If the owner dies before payments begin, the beneficiary receives the full contract value in a lump sum. The interest portion is generally taxable as income to the beneficiary.

Q: How is the company rated?

A: AmFirst Insurance Company holds a Financial Strength Rating of "A- (Excellent)" from AM Best.