AAFMAA Wealth Builder

AAFMAA Wealth Builder
Key Features and Benefits

  • 2022 crediting rate of 4.25%.

  • AAFMAA Wealth Builder offers a garanteed lifetime minimum rate of 3%, minus the administrative fee for a net guaranteed return of 2.25%.

  • AAFMAA has had crediting rates at or above 4.25% for over 30 years, consistently at least 25% higher than major annuity, bond, and treasuries indexes.

  • 100% of your principal goes to work immediately, with guaranteed growth.

  • 100% Liquidity at any time and:

    No Minimum Term;
    No Surrender Charges;
    No Penalties; and
    No Early Termination Fees.

  • Clients’ savings grows tax deferred.

  • Options to also select guaranteed lifetime income for single or survivor benefit, with a current annuitization rate of 3%.

  • Principal withdrawal is easy and fast, with no penalty.

  • Minimum commitment of $7,850 with a maximum of $785,000 per person.***

    Maximum flexibility, liquidity options customized to clients’ needs with multiple policies at the level they define or a lumpsum, single policy.

  • Maximum flexibility, liquidity options customized to clients’ needs with multiple policies at the level they define or a lumpsum, single policy.

What is Wealth Builder?

  • Specially designed Net Single Premium (one lump sum payment) Value-Added Whole Life policy

  • The Net Single Premium is $785 per $1,000 of death benefit ($10,000 - $1,000,000 coverage)

  • Cash value grows at a current crediting rate of 4.25%*

  • Guaranteed crediting rate of 3.0%*

  • At the time of application, the insured must not be in a hospital, confined to a bed or have a known terminal illness expected to result in death within two years of issue. The policy is subject to standard two-year contestability and suicide clause.

  • No medical records or physicals are required

  • Option to convert into a lifetime stream of income after holding the policy for 10 years

  • Long-Term Care Settlement Option included for no additional premium

AAFMAA Wealth Builder logo

AAFMAA vs. 2 Year Annuity Growth

Your Client grows $105,158 more with AAFMAA in five years or 119% greater growth

AAFMAA Wealth Builder chart

Considering a Deferred Annuity? Wealth Builder is a Better Solution.

When investing in a life insurance plan, there are several types of deferred annuities to consider. A deferred annuity is a long-term investment in which you invest a sum of money now and receive payments after the initial sum has accrued interest over a period of time, typically years in the future. The type of deferred annuity you purchase—fixed, variable, indexed—will determine how the rate of return is computed. 

While there are many benefits of tax-deferred annuities, once the policy is annuitized and the accumulation period ends, earnings in the deferred annuity become subject to taxation. This applies to both individual annuities and joint and survivor annuities. 

One significant benefit of AAFMAA Wealth Builder Life Insurance is that all policies are Modified Endowment Contracts (MEC). A Modified Endowment Contract is a tax qualification of a life insurance policy where premiums are paid into a life insurance policy more quickly than normal, usually less than seven years. Since MECs grow tax-deferred and have a tax-free death benefit, they are seen as a beneficial alternative to traditional deferred annuities. 

Value-Added Additions

  • Savings can be annuitized immediately to provide a guaranteed lifetime income stream.

  • Long-Term Care Settlement Option automatically included.

  • Policy loan available for partial access to funds at any time, net effective preferred loan rate of 1%.

  • Death benefit includes all principal and interest, with initial 26.6% additional “step up” in insurance coverage, 100% tax free to beneficiary. 

  • Permanent guaranteed Life Insurance coverage included; no medical exam required.

Who is Eligible?

  • An estimated 40M+ families and individuals, over 60% who are older than age 55, can benefit from AAFMAA Wealth Builder Life Insurance:

  • Veterans and Servicemembers, including Reserves and National Guard;

  • Spouses (of active, retired, and widow Veterans);

  • Family Members (some restrictions apply);

  • Those who might not meet medical requirements of other policies.

AAFMAA Background

  • The longest standing non-profit organization exclusively serving the military community with superior financial solutions for 142 years.

  • Founded in 1879 via a US government decree after the Battle of the Little Bighorn.

  • Service to over 250,000 families.

  • Notable members throughout history, including the most respected Presidents, Generals, Admirals, Secretaries, Chiefs of Staff, and Servicemembers of all ranks, from all geographies, races, genders, and military status.

  • All AAFMAA Officers and Board of Directors members are Veterans. 

Want to know more about AAFMAA Wealth Builder?

Download the full brochure here


*MEC definition, crediting rate includes 0.75% administrative fee

AAFMAA Wealth Builder Life Insurance is a life insurance policy. This is not a federally insured savings deposit and should not be purchased for that purpose. Includes a Long-Term Care Settlement Option. For more information, visit aafmaa.com/wbli.

Subject to terms and conditions of the policy, including exclusions and limitations. There is no insurance coverage unless you apply and are accepted by AAFMAA, a policy is issued and you pay the required premium. No war, aviation, terrorist clause. All policies include Survivor Assistance Services.

*AAFMAA’s current crediting rate on Wealth Builder Life Insurance policies issued in 2021 is 4.50%, minus an administrative fee of 0.75% for a net current return of 3.75%. These rates are NOT guaranteed. The guaranteed crediting rate for Wealth Builder Life Insurance policies issued in 2020 is 3.0%, minus the administrative fee for a net guaranteed return of 2.25%.

Wealth Builder Life Insurance policies are Modified Endowment Contracts (MECs) subject to the Technical and Miscellaneous Revenue Act of 1988 (TAMRA). Under TAMRA, you may owe taxes and penalties if you surrender or take a loan against the cash value in your Wealth Builder Life Insurance policy. AAFMAA does not provide tax advice. If you have questions about the tax implications of this product or other life insurance products you own, please consult a qualified tax professional. 

The U.S. Government does not sanction, recommend, or encourage the sale of this product. Subsidized life insurance may be available from the Federal Government.

***Minimum contribution of $7,850 per policy, maximum of 100 policies per person.