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
