Power 10 Protector Review

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.

A withdrawal charge may be applied if you withdraw money from the contract within the first ten contract years. The Power 10 Protector withdrawal charges decrease annually over this period.

This charge does not apply to the 10% free withdrawal amount. A market value adjustment (MVA), which can be either positive or negative, is applied to amounts subject to withdrawal charges. 

Typically, if interest rates have increased, the MVA may reduce the amount you receive from a withdrawal. Conversely, if interest rates have decreased, the MVA may increase the amount you receive.

You can have an impact on your Power 10 Protector performance by choosing from several indexes to combine with your crediting method. You have the following choice:

A crediting method is a mathematical formula that helps establish the amount of indexed interest the annuity receives, taking into account the index changes in the ‘crediting period.’ 
Power 10 Protector credits interest using various interest crediting methods – including index interest account methods and a fixed interest account. All the options are mentioned below:

Just like with any other annuity, Corebridge Financial charges penalties for an early withdrawal of annuity contract. They are referred to as annuity surrender charges and are counted with a certain percentage of the withdrawal amount. These penalties are reduced over time to disappear completely when the term ends.

Take a look at the Power 10 Protector surrender schedule:

• A market value adjustment (MVA) is an extra fee or credit applied by an annuity provider when money is withdrawn early from an annuity.
• MVA is counted using a formula aimed at reacting to interest rate fluctuations at the moment of the withdrawal.
• Power 10 Protector’s MVA will apply to withdrawals exceeding the free withdrawal amount made within the surrender charge period.
• It will not apply to withdrawals less than or equal to the Maximum Annual Withdrawal Amount (MAWA) during the benefit income period, annuitization, death benefits, free withdrawal amounts, and Required Minimum Distributions (RMDs) from qualified contracts that apply to amounts held under the contract.

• One of the Power 10 Protector advantages is that it is RMD-friendly. RMDs force you to withdraw a minimum amount of money from your retirement account each year, depending on your age.
• Some annuities can make taking RMDs difficult. For instance, if an annuity has surrender charges (penalties for early withdrawal), taking out your RMD could trigger these charges and reduce your payout.
• RMD-friendly annuities like Power 10 Protector are designed to avoid conflicts with RMD requirements.

All in all, Power 10 Protector appears to be a good annuity choice. It offers multiple indices and crediting methods so you can choose the most beneficial ones for you. 

What’s more, this annuity is RMD-friendly and includes policy provisions that partially allow you to access the funds without penalties, and it includes several penalty waivers. 

If the minimum premium of $25,000 is affordable to you and if you keep all the Power 10 Protector risks in mind, it can be the right product for you.
However, take into account that there are also some more advanced variations of this annuity (like Power 10 Protector Plus Income) that can be worth considering.