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Annuity of the Week: Power 5 Protector (FIA)

Power 5 Protector (FIA)

AIG’s Power 5 Protector is a single-premium fixed index annuity with a 5 year surrender charge period.  The Power 5 Protector provides a fixed interest account and multiple index interest crediting strategies.

  • Minimum Premium:  $25,000
  • Max Issue Age:  85
  • Annual Contract Fee:  N/A
  • RMD-Friendly:  Yes
  • Fee Withdrawal Amount:  10% Starting in Year 1

Fixed Index Strategies

1 Year S&P 500 Annual Point-to-Point Cap:  10.00%

1 Year S&P 500 Performance Trigger:  4.00% 

How does S&P 500 Annual Point-to-Point Cap actually work?:

Hypothetical Example: Dan rolls his 401k into a Power 5 Protector (FIA) contract on 10/11/2022 with 100% of the premium linked to S&P 500 Cap.  On the contract anniversary (10/11/2023), the carrier credits Dan’s account value with the S&P 500 growth from issue date to anniversary date up to cap of 10%.

  • If the S&P 500 was up 6.50%, then Dan’s account value would grow by 6.50%.
  • If the S&P 500 was up 12%, then Dan’s account value would grow by 10% (the cap).
  • If a correction similar to 2008 occurs and the S&P 500 drops 38%, then Dan’s account value will remain level.

With a FIA Dan faces ZERO downside market risk.

Do you have clients looking for a higher return than a Fixed Annuity (MYGA) or their local bank CD?  Time to get their money off the sidelines.  Give us a call today!  973-435-3784

*Not available in ID, NY, PR, or VI
**AIG is now a subsidiary of Corebridge Financial

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