MDWT Midwest Holding Inc

LINCOLN, Neb., Aug. 16, 2023 /PRNewswire/ -- American Life & Security Corp., a subsidiary of Midwest Holding Inc. (NASDAQ: MDWT), is proud to announce the launch of an exciting new annuity product, American Fusion. The product, distributed by American Life's IMO partners, combines key characteristics of a Multi-Year Guaranteed Annuity (MYGA) and a Fixed Index Annuity (FIA), offering the benefits of two annuity products in one. With Fusion, American Life has created its own product category: the Multi-Year Guaranteed Index Annuity, or MYGIA.

American Fusion's 5-year contract offers both a 5-year guaranteed compounding interest rate and the opportunity for a bonus if the S&P 500^® Index reaches a defined performance threshold at the end of the 5-year term.

Currently, American Fusion is offered with a 4% guaranteed compounding interest rate and a 14% Bonus Interest Credit if S&P 500^® Index growth equals or exceeds 25% at the end of the 5-year period.¹ Looking back over the past 40 years, the 5-Year S&P 500^® 25% performance threshold would have been triggered more than 75% of the time.²

^{Source: Yahoo Finance. S&P 500® Adjusted close prices, 5-year periods starting 1/1/1978 and ending 05/24/2018.}

American Fusion offers a simple and powerful way to secure a guaranteed rate for 5 years as well as the potential to participate in market growth without downside exposure.

"With American Fusion, American Life underscores its commitment to innovation and simplicity," said Tom Bumbolow, Head of Distribution and Business Development. "We learn to innovate through listening, and American Fusion is the outcome of regular, ongoing communication across our key stakeholders to deliver a consumer-centric product solution for the future. Guaranteed growth plus the opportunity for more: American Fusion makes it simple."

American Fusion policyholders can take their IRS-mandated Required Minimum Distributions (RMDs) starting in the second contract year without a penalty.³ If any withdrawals are taken except RMDs starting in year 2, the contract will be ineligible for the Bonus Interest Credit. Surrender charges and market value adjustment (MVA) may apply to withdrawals that exceed the penalty-free withdrawal amount.

In addition, a Guaranteed Death Benefit is included which pays the full account value without surrender charges or MVA to the beneficiary(ies) in the event of a policyholder's death. If the policyholder dies before the end of the contract term, the contract is ineligible for the Bonus Interest Credit unless the spouse is listed as the primary beneficiary and continues the contract under Spousal Continuation. Please review the Client Brochure for more information.

"Fusion combines a competitive full-term guaranteed rate with a strong performance threshold rate that can help meet the needs of pre-retirees and retirees of all ages. This compelling client value proposition is built on a simple and transparent chassis," Bumbolow said.

American Fusion is approved for sale in 21 states and the District of Columbia: Arizona, Colorado, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Michigan, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, South Dakota, and Texas. Approval is pending in the remaining 4 states of the company's current footprint.

¹Rates are as of 6/20/23 and are subject to change.
²Yields may vary and past performance is no indicator or guarantee of future returns. Methodology used to estimate returns may not correlate with the policyholder's actual experience.
³Withdrawals of interest prior to age 59 ½ may be subject to a 10% Federal income tax penalty. 

About Midwest Holding Inc. ("Midwest")
Midwest Holding Inc. is a technology-enabled, services-oriented annuity platform. Midwest designs and develops in-demand annuity products that are distributed through independent distribution channels to a large and growing demographic of U.S. retirees. Midwest originates, manages, and typically transfers these annuities through reinsurance arrangements to asset managers and other third-party investors. Midwest also provides the operational and regulatory infrastructure and expertise to enable asset managers and third-party investors to form and manage their own reinsurance capital vehicles. For more information, please visit www.midwestholding.com.

About American Life & Security Corp.
American Life & Security Corp. is a wholly owned subsidiary of Midwest Holding Inc. In 2018, the company was recapitalized and reimagined by a team of seasoned insurance, technology and investment experts with a new purpose - build a platform on modern technology with simplicity, transparency and cost efficiency to remedy inefficiencies in the life and annuity industry. For more information, please visit www.american-life.com

Contacts
Investor contact: ir@midwestholding.com
Media inquiries: press@midwestholding.com
Sales inquiries: sales@american-life.com

SPECIAL CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained or incorporated by reference in this release constitute forward-looking statements. These statements are based on management's expectations, estimates, projections, and assumptions. In some cases, you can identify forward-looking statements by terminology including "could," "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "intend," "target," "contemplate," "project," or "continue," the negative of these terms, or other comparable terminology used in connection with any discussion of future operating results or financial performance. These statements are only predictions and reflect our management's good faith present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.

Factors that may cause our actual results to differ materially from those contemplated or projected, forecast, estimated or budgeted in such forward-looking statements include among others, the following possibilities:

• our business plan, particularly including our reinsurance strategy, may not prove to be successful;
• our reliance on third-party insurance marketing organizations to market and sell our annuity insurance products through a network of independent agents;
• adverse changes in our ratings obtained from independent rating agencies;
• failure to maintain adequate reinsurance;
• our inability to expand our insurance operations outside the 25 states and the District of Columbia, in which we are currently licensed;
• our annuity products may not achieve significant market acceptance;
• we may continue to experience operating losses in the foreseeable future;
• the possible loss or retirement of one or more of our key executive personnel;
• intense competition, including the intensification of price competition, competitive pressures from established insurers with greater financial resources, the entry of new competitors, and the introduction of new products by new and existing competitors;
• adverse state and federal legislation or regulation, including decreases in rates, limitations on premium levels, increases in minimum capital and reserve requirements, benefit mandates and tax treatment of insurance products;
• fluctuations in interest rates causing a reduction of investment income or increase in interest expense and in the market value of interest-rate sensitive investments;
• failure to obtain new customers, retain existing customers, or reductions in policies in force by existing customers; and
• higher service, administrative, or general expense due to the need for additional advertising, marketing, administrative or management information systems expenditures
• changes in our liquidity due to changes in asset and liability matching;
• possible claims relating to sales practices for insurance products; and
• lawsuits in the ordinary course of business.

The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties that affect the business of Midwest and its affiliates  (the "Company") as described in the "Risk Factors" section of Midwest's Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and other documents filed from time to time with the U.S. Securities and Exchange Commission (the "SEC"), which can be obtained online at the SEC's website at sec.gov or on Midwest's website at midwestholding.com.. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made.  Readers are cautioned not to place undue reliance on any such forward-looking statements, and the Company assumes no obligation to, and does not intend to, update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise, unless required by law.

American Fusion Multi-Year Guaranteed Index Annuity is issued by American Life & Security Corp, Lincoln NE; issued on form ICC18-MYGA 001 08/18, MYGA 001 08/18, MYGA 001 FL 08/18, ICC18-MYGALR 001 08/18, MYGALR 001 08/18, MYGALR 001 FL 08/18, ICC18-MYGADBR 001 08/18, MYGADBR 001 0//18,  BIC 002 03/23, BIC 002 FL 03/23, BIC 002 KS 03/23, BIC-SCH 001 12/22 and BIC-SCH 001 KS (riders/endorsements).

Insurance products are issued by American Life & Security Corp. and are not offered in all states. The product features may vary by state.

Guarantees are based on the claims paying ability of American Life & Security Corp. Withdrawals of taxable amounts are subject to income tax and may be subject to a market value adjustment, and if taken prior to age 59 ½, a 10% IRS penalty may also apply. Withdrawals, which may be subject to surrender charges and a market value adjustment, have the effect of reducing benefits and values. Withdrawals in excess of the RMD (only available starting in year 2) will make the contract ineligible for the Bonus Interest Credit at the end of the contract term.

For Owners who are taking Required Minimum Distributions from IRAs, the annual RMD for the current year should be taken prior to qualified funds transfer to American Life. Any RMD in Year 1 is subject to surrender charge and MVA.

Investment in an annuity with qualified funds or in an IRA does not provide any additional tax benefits as the account is already tax deferred. There are no additional tax deferral benefits available for these assets and therefore an annuity should only be purchased to take advantage of the product's other features, such as lifetime income and death benefits.

This material is intended to provide an overview of American Life's Classic MYGA product and is not considered tax advice. You should consult with a tax advisor or legal counsel for advice specific to your personal financial situation. There are no additional tax deferral benefits for contracts held in IRAs as they are already a tax deferred account.

The S&P 500^® is a product of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and has been licensed for use by Midwest Holding, parent company of American Life & Security Corp. ("American Life"). S&P^®, S&P 500^®, US 500, The 500, iBoxx^®, iTraxx^® and CDX^® are trademarks of S&P Global, Inc. or its affiliates ("S&P"); Dow Jones^® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); It is not possible to invest directly in an index. American Fusion Multi Year Guaranteed Index Annuity ("American Fusion") is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, any of their respective affiliates (collectively, "S&P Dow Jones Indices"). S&P Dow Jones Indices does not make any representation or warranty, express or implied, to the owners of the American Fusion or any member of the public regarding the advisability of investing in securities generally or in American Fusion particularly or the ability of the S&P 500^® to track general market performance. Past performance of an index is not an indication or guarantee of future results. S&P Dow Jones Indices' only relationship to American Life with respect to the S&P 500^® is the licensing of the Index and certain trademarks, service marks and/or trade names of S&P Dow Jones Indices and/or its licensors. The S&P 500^® is determined, composed and calculated by S&P Dow Jones Indices without regard to American Life or the American Fusion. S&P Dow Jones Indices have no obligation to take the needs of American Life or the owners of American Fusion into consideration in determining, composing or calculating the S&P 500^®. S&P Dow Jones Indices have no obligation or liability in connection with the administration, marketing or trading of American Fusion. There is no assurance that investment products based on the S&P 500^® will accurately track index performance or provide positive investment returns. S&P Dow Jones Indices LLC is not an investment adviser, commodity trading advisory, commodity pool operator, broker dealer, fiduciary, promoter" (as defined in the Investment Company Act of 1940, as amended), "expert" as enumerated within 15 U.S.C. § 77k(a) or tax advisor. Inclusion of a security, commodity, crypto currency or other asset within an index is not a recommendation by S&P Dow Jones Indices to buy, sell, or hold such security, commodity, crypto currency or other asset, nor is it considered to be investment advice or commodity trading advice.

NEITHER S&P DOW JONES INDICES NOR THIRD PARTY LICENSOR GUARANTEES THE ADEQUACY, ACCURACY, TIMELINESS AND/OR THE COMPLETENESS OF THE S&P 500^® OR ANY DATA RELATED THERETO OR ANY COMMUNICATION, INCLUDING BUT NOT LIMITED TO, ORAL OR WRITTEN COMMUNICATION (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT THERETO. S&P DOW JONES INDICES SHALL NOT BE SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS, OR DELAYS THEREIN. S&P DOW JONES INDICES MAKE NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE OR AS TO RESULTS TO BE OBTAINED BY AMERICAN LIFE. OWNERS OF THE AMERICAN FUSION OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500^® OR WITH RESPECT TO ANY DATA RELATED THERETO. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P DOW JONES INDICES BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES INCLUDING BUT NOT LIMITED TO, LOSS OF PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, OR OTHERWISE. S&P DOW JONES INDICES HAS NOT REVIEWED, PREPARED AND/OR CERTIFIED ANY PORTION OF, NOT DOES S&P DOW JONES INDIES HAVE ANY CONTROL OVER, THE LICENSEE PRODUCT REGISTRATION STATEMENT, PROSPECTUS OR OTHER OFFERING MATERIALS. THERE ARE NO THIRD-PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN S&P DOW JONES INDICES AND AMERICAN LIFE OTHER THAN THE LICENSORS OF S&P DOW JONES INDICES.

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SOURCE Midwest Holding Inc.