Assured Edge Income Builder Annuity Review

About Corebridge Financial

Assured Edge Income Builder is a fixed annuity offered by Corebridge Financial. Founded in 1850, the company has established itself as a trusted institution in the insurance industry.

Corebridge Financial is one of the biggest providers of retirement solutions to meet the diverse needs of individuals and families. Based in New York, the company has a proven track record of excellent customer service and a wide portfolio of products and services.

Corebridge Financial enables people to take action toward their financial stability and remains one of the sought-after providers of annuity options.

Corebridge Financial Rating

Rating Company

Rating

Moody’s

S & P

A+

A.M. Best Rating

Comdex

Assured Edge Income Builder Highlights

Assured Edge Income Builder Annuity is a tax-deferred fixed annuity with a 7-year-term and Guaranteed Lifetime Withdrawal Benefit.

Minimum and Maximum Contributions
Assured Edge Income Builder requires a minimum initial premium of $25,000 for both non-qualified and tax-qualified annuities. For non-natural entities, this sum is set at $150,000.
The maximum contribution that can be made to this annuity is $2,000,000.
Types of Ownership
This product is available to purchase by private clients, both in single and joint variants. You can hold an annuity within an IRA, SEP IRA, and Roth IRA. Non-natural entities that want to purchase Assured Edge Income Builder annuity are obligated to first acquire proper approval.
Free Withdrawals
The Assured Edge Income Builder annuity offers free withdrawals of up to 10% of the contract starting from the beginning of the first year of the contract’s term. Those withdrawals cannot be smaller than $250.
Any withdrawals made during the first year of the contract will be based on the total amount of eligible premiums paid in by the time of the withdrawal.

In addition to the standard withdrawal options, there are a few situations where you can take money out without facing a penalty. This extends to RMD withdrawals that can be taken penalty-free from your annuity, even if you're still within the surrender charge period.
The same goes for withdrawals up to the guaranteed lifetime income amount after lifetime income payments have begun.
Waivers
Most annuities come with surrender charges, which are penalties imposed if you withdraw money before a certain period (usually several years). A surrender charge waiver negates this penalty for a specific withdrawal.
The Assured Edge Income Builder annuity offers waivers in three different circumstances:
Terminal Illness - To qualify for a terminal illness withdrawal, the owner must be diagnosed with a terminal illness after the annuity contract is issued. Only one withdrawal, either partial or full, is allowed. Extended Care - The owner must need care in a nursing home or other qualified facility for at least 90 days in a row. This care must begin after the first year of the annuity contract and cannot have started before the contract was issued.
Activities of Daily Living - The owner needs to be unable to do at least two out of six basic daily tasks without help for at least 90 days in a row. This must happen after the first year of the contract.

Assured Edge Income Builder Annuity Overview

🔔 Important Information

Annuity Term

7 Years

Type of Annuity

Fixed

Interest

2.25%

Premium Type

Single Premium with Additional

Maximum Issue Age

80 years

Withdrawal Charge Schedule

7%, 6%, 5%, 4%, 3%, 2%, 1%, 0%

Minimum Premium

$25,000

Maximum Premium

$2,000,000

RMD

Yes

Market Value Adjustment

Yes

Assured Edge Income Builder Historical Rate of Return

The hypothetical historical performance provided herein showcases the annualized return of allocation strategies, representing the investment's annual growth rate considering compounding effects. Similar analyses can be found for each account in official fixed index annuity illustrations provided by insurance carriers.

What's not reflected:
The annualized return does not encompass rider charges, strategy fees, or applicable premium bonuses.

Notes on rates:
The information presented assumes the annuities' current caps, spreads, participation rates, and other related rates, without guarantee.

No guarantees:
These actual elements are subject to change over time, resulting in potentially higher or lower outcomes. Additionally, no single index consistently outperforms in every scenario. It is advisable to consult with a properly licensed and educated annuity professional before making any decisions.

Fees and Charges

Assured Edge Income Builder includes a rider fee of 0,95% of your account balance, charged annually.

Guaranteed Interest Rate

With the Assured Edge Income Builder annuity, you can grow your investment based on a fixed interest rate on your contributions. This rate is locked in for a specific period at the time you purchase the annuity contract. For this particular annuity product, the interest rate is 2.25%.

Crediting Methods

The Assured Edge Income Builder annuity uses a crediting method that utilizes a mechanism for growing your guaranteed lifetime income benefit (GLIA). Here's a breakdown:

Initial GLIA: This is calculated at the end of the initial premium payment period (60 days after the contract is issued). It simply multiplies your total contributions by an income percentage based on your age at that time.
Income Growth Credit: This is a yearly increase applied to your GLIA if you haven't begun receiving lifetime income withdrawals.

Since this is a fixed annuity, there's no involvement of the stock market in this crediting method. The income growth rate is guaranteed by the insurance company.
Once you start receiving lifetime income, the guaranteed income amount (GLIA) is locked in and won't grow further with annual increases.

Assured Edge Income Builder Annuity Surrender Charge Schedule

Assured Edge Income Builder Key Features

Guaranteed Lifetime Withdrawal Benefit

This benefit provides you with a stream of income for life once you start receiving withdrawals. The GLIA is calculated based on your initial contributions and an income percentage tied to your age at that time.

Market Value Adjustment (MVA)

Early withdrawals may be subject to a Market Value Adjustment (MVA). This applies to withdrawals exceeding the penalty-free amount during the first five years of your contract.

For this annuity product, MVA will not be applied to:

Withdrawals up to the guaranteed lifetime income amount (GLIA) after income payments begin.
Penalty-free withdrawals, including those allowed at age 59 ½.
Death benefit payout.
Converting your annuity into income payments (annuitization).
Required Minimum Distributions (RMDs) mandated by the IRS.
The minimum withdrawal amount allowed by the contract.

Death Benefit

The death benefit on the Assured Edge Income Builder acts as a safety net for your beneficiaries. If you pass away before starting to receive income withdrawals, the death benefit ensures your beneficiaries receive a lump sum. This can help cover expenses or provide financial support during a difficult time.

Pros and Cons

Key Takeaways

The Assured Edge Income Builder annuity by Corebridge Financial is a fixed annuity designed for those nearing retirement who prioritize lifetime income and predictable growth with some protection from market risk.

Those who understand and are comfortable with the limitations of fixed annuities, such as lower growth potential and surrender charges, can greatly benefit from this annuity product.

Through the Guaranteed Lifetime Withdrawal Benefit, you receive a steady stream of income for life after you start withdrawals. This can provide financial security and peace of mind in retirement.

About the Product

Product Name

Assured Edge Income Builder

Product Type

Fixed Annuity

Launch Date

2016

Product Information

Assured Edge Income Builder is a fixed annuity which is a type of contract that offers a fixed interest rate on your contributions. This rate is locked in for a specific period at the time you purchase the annuity contract.

The earnings on your contributions accumulate on a tax-deferred basis. This means you don't pay taxes on the interest earned until you start withdrawing money from the annuity, which can be beneficial for growing your retirement savings.

Product Brochure

Account Types

Personal Single or Joint, Non-Qualified, 401k, IRA, IRA Rollover, IRA Transfer, TSA 403b, SEP IRA, KEOGH, IRA-Roth, 1035 Exchange, and TSP

Not Available In

Refer to the contract

Annuity Expert

Jeremiah Konger

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Other Corebridge Financial Fixed Index Annuity Products

American General American Pathway 5 is not the only annuity you can benefit from with Corebridge Financial. The company offer many other fixed and indexed annuity products that may be a better match for you.

American Pathway Fixed Annuity

This annuity offers guaranteed interest earnings, tax-deferred growth, and protection from market risk.

It also provides you with the flexibility to access your money through withdrawals.

The Assured Edge Income Achiever

This annuity focuses on providing a flexible guaranteed lifetime withdrawal benefit (GLWB).

Instead of an income growth credit, the Achiever uses a flexible income percentage to calculate your GLWB.

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