At a Glance
What Is a Fixed-Indexed Annuity?
A Fixed-Indexed Annuity (FIA) is a core component of modern annuities. It combines absolute principal protection with the opportunity to earn interest linked to a market index–without ever directly investing in the stock market.
- Your principal is 100% protected, market downturns cannot reduce your account value.
- Interest is linked to an index (like the S&P 500 or Gold ETF) and subject to a cap or participation rate.
- Any credited interest is locked in permanently and cannot be lost to future market declines.
- A Guaranteed Minimum Surrender Value (GMSV) provides a safety floor even if the annuity earns zero indexed interest.
How Your Money Grows
The American Legend 7 offers multiple index strategies. You can allocate your funds across different options and reallocate at each annual renewal. Based on the most recent 2026 illustrations, here are two of the most popular strategies:
S&P 500® 1-Year Point-to-Point
Tracks the S&P 500 index over a one-year term. If the index gains, you earn up to the 9.25% cap. If it falls, you earn 0%–your balance stays completely protected.
SPDR® Gold Shares 1-Year PTP
Tracks the SPDR Gold Shares ETF. Gold serves as an excellent inflation-sensitive diversifier. If gold rises, you earn up to 12%. If it falls, you earn 0%.
Historical Index Performance
SPDR Gold Strategy, Historical Chart
Showing best, worst, and most recent 10-year periods at the current 12% annual cap:
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SPDR Gold Shares ETF · 1-Year PTP Cap · Current Cap: 12% · Allocation: 50% · Inception: 11/18/2004
S&P 500 Strategy, Historical Chart
Showing best, worst, and most recent 10-year periods at the current 9.25% annual cap:
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S&P 500® Index · 1-Year PTP Cap · Current Cap: 9.25% · Allocation: 50% · Inception: 03/04/1957
Combined 50/50 Allocation Result
Most recent 10-year period (50% S&P 500 / 50% Gold)
*Hypothetical illustration based on actual historical index performance using current caps. Past performance does not guarantee future results.
Liquidity, Fees & Protection
Penalty-Free Withdrawals
Each year you may withdraw up to 10% of your account value without incurring any surrender charges or Market Value Adjustments (MVA).
Included Waiver Riders
- Extended Care: Withdraw up to 100% penalty-free if confined to a nursing facility for 90+ days (after year 1).
- Terminal Illness: Withdraw up to 100% penalty-free if diagnosed with a terminal illness (after year 1).
Early Withdrawal Charge Schedule
| Year | Charge |
|---|---|
| 1 | 9% |
| 2 | 8% |
| 3 | 7% |
| 4 | 6% |
| 5 | 5% |
| 6 | 4% |
| 7 | 3% |
| 8+ | 0% |
Ready to secure your retirement?
Find out exactly how the MassMutual Ascend American Legend 7 fits into your comprehensive retirement strategy.