Worried about Social Security reductions? We can help.
We are pioneering the “retirement insurance” category with the launch of our first product, the PlanGap Annuity.
This is the first product – EVER – to pay a bonus should your Social Security benefits be reduced by government action.

The PlanGap Annuity is the first annuity that has a bonus providing protection against reductions in your Social Security benefits.
For individuals looking for a simple and secure way to manage their money into retirement, American Life offers the PlanGap Annuity.
Interested in learning more about the PlanGap Annuity Offered by American Life?
Innovative & Low Risk
Innovative Fixed Deferred Annuity with a Multi-Year Rate Guarantee (MYGA) that provides a low-risk and predictable return, while providing protection against Social Security benefit reduction.
Flexibility Bonus
Includes a Flexibility Bonus if the Social Security funding gap is solved and you no longer feel the need for protection.
Peace of Mind
No one knows what is going to happen to the Social Security system. What we do know is that a reduction in benefits would cause a serious hardship for many Americans. Our PlanGap Annuity can help protect the promises that have been made to you and allow you to sleep better at night.
Learn more about the PlanGap Annuity Offered by American Life
4 out of 5 adults rely on, or plan to rely on, Social Security in the future as a source of income in retirement.
AARP Social Security 80th Anniversary Survey
How Does The PlanGap Annuity Work?
The PlanGap Annuity can help protect the promises that have been made to you and allow you to sleep better at night.
Initial Premium
When you enter into a contract with American Life, you pay an upfront initial premium. In return, American Life grows that initial premium. This provides you with safe, stable and guaranteed returns.
Earn Interest
The premium grows at a fixed, competitively high interest rate for a guaranteed number of years. The interest earned is tax-deferred during the term, meaning you don’t pay income taxes until you make a withdrawal.
Guarantee Period
At the end of the guarantee period, you can choose to either withdraw your initial premium along with your guaranteed return or continue your PlanGap Annuity for another five years.
Bonus & Withdrawal
If you experience a qualifying government mandated reduction in your Social Security benefits, you will receive a PlanGap Bonus based upon how long you have held the Annuity. These funds can be withdrawn without penalty to help cover the gap in your retirement income.
Frequently Asked Questions
PlanGap is pioneering the “retirement insurance” category with the launch of our first product, the PlanGap Annuity. This is the first product to ever pay a bonus should your Social Security benefits be reduced by government action. If you have any questions beyond what we have provided, please reach out so we may develop a clear vision for your retirement.
How will the value of my PlanGap Annuity grow?
You purchase this annuity with a single premium payment. The amount of your account value will grow through interest credited to your contract at a guaranteed rate for the length of the guarantee period.
Can you purchase the PlanGap Annuity inside a retirement account?
Yes, this contract can be used with IRAs (Traditional, Roth & SEP) & 401k, 403b as rollovers (no 501c3 or 401a).
What is the PlanGap Bonus?
The PlanGap Bonus is paid when a qualifying government mandated reduction in Social Security benefits occurs. The bonus calculation is based on the original premium paid (minus any withdrawals) and the length of time the contract has been in force. This allows you to effectively choose, upfront when purchasing the annuity, the bonus amount you wish to receive.
What is the Flexibility Bonus?
In the event Social Security funding is fixed, or you decide you no longer need PlanGap protection, the Flexibility Bonus gives you the option at the end of the guaranteed period to fully surrender your contract and receive a bonus based on account value and the number of five-year guaranteed periods you’ve held the contract. See the contract for additional details.
When would I be eligible to receive a PlanGap Bonus?
You become eligible for a PlanGap Bonus when one of two triggering events occur: A reduction in the Social Security Benefit Index for your birth year of more than 3% or an approved individual claim submission of a government mandated benefit reduction of more than 3%.
What is the Social Security Benefit Index?
The Social Security Benefit Index was created by Milliman, an independent actuarial and consulting firm, for use with a variety of insurance and financial products to measure changes in the way Social Security benefits might be calculated in the future.
Can I view the Social Security Benefit Index?
Yes! The PlanGap Annuity was designed to be completely transparent and you can view the Social Security Benefit Index at any time at https://www.socialsecuritybenefitindex.org/
How does the Social Security Benefit Index calculate benefits?
The calculations used in the Social Security Benefit Index follow the methodology for calculation of benefits made publicly available by the Social Security Administration. To provide complete transparency, the details behind the calculations are shown on the index website.
Are the Social Security Benefit Index calculations determined by the insurance company?
No. The Social Security Benefit Index operates independently and is administered by Milliman.
If my Social Security benefits were reduced because of means-testing, would the index capture that change?
A reduction due to means testing may not be reflected in the Social Security Benefit Index. In this scenario, you can submit an individual claim request to the insurance company.
Is the PlanGap payable when the government announces that a reduction in Social Security will occur or is it payable when the reduction actually occurs?
The PlanGap is payable when the reduction actually occurs. For example: assume that in 2033 the government announces that beginning 1/1/2034, Social Security benefits will be reduced. If you are eligible for PlanGap, your first date of eligibility would be 1/1/2034.
What communication would I receive if a triggering event were to occur?
At the time of a triggering event, you will be sent a statement outlining the PlanGap benefits available to you. You have the option to delay the start date in order to increase your bonus percentage. If you do not respond, account credits will begin to be added to your account value immediately.
How can I withdraw my money?
You can withdraw money from your annuity at any time. Certain withdrawals never incur a penalty. These include:
- An annual withdrawal, starting in year two, of up to 10% of your contract value.
- A required minimum distribution requested after the first contract year. This will be treated as a free withdrawal and no surrender charge or market value adjustment will apply.
- Withdrawals made during the 30-day window, which occurs at the end of each 5-year guarantee period.
See the contract for additional details.
How is the PlanGap Annuity taxed?
The tax rules that apply to annuity contracts are complex. This discussion is not intended to be comprehensive or address any particular owner’s tax situation.
This contract is an annuity, as defined in the Internal Revenue Code. While your earnings remain in the annuity, they are not subject to federal or state income tax. All or a portion of amounts withdrawn are subject to ordinary income tax, and if taken prior to age 59 1⁄2, a 10% IRS penalty may also apply.
We do not provide tax, financial or investment advice. Consult a tax advisor or financial representative about your specific circumstances.
What happens to your contract upon death?
The PlanGap Annuity provides an enhanced death benefit equal to the account value as of the date of death plus any unpaid PlanGap account credits. No surrender charge or MVA will apply.