Power 7 Protector Plus Income Review
Be sure to carefully review the Power 7 Protector Plus Income surrender schedule before committing, as early withdrawals may incur charges. Additionally, weighing the pros and cons will help you determine if this annuity aligns with your financial goals and risk tolerance.
About Power 7 Protector Plus Income
The Power 7 Protector Plus Income is a fixed indexed annuity designed to balance growth potential and financial security. As you explore Power 7 Protector Plus Income reviews, you'll discover its unique blend of benefits and risks. This product aims to provide you with the advantages of market-linked growth while shielding your principal from market downturns.
American General Life Insurance Company Rating
Rating Company
Rating
Moody’s
A2
S & P
A+
A.M. Best Rating
A3
Comdex
82
Power 7 Protector Plus Income Highlights
-
Fixed index annuity
This annuity offers a blend of fixed and index-linked benefits, ideal for those seeking a balance of guaranteed income and growth potential. -
Flexible premiums
The annuity allows flexible premium payments, making it accessible for various financial situations. -
Free withdrawals
Beginning in the second year, you can withdraw up to 10% of the contract's premium annually without incurring surrender charges -
Market value adjustment
An adjustment feature linked to the Bloomberg US Intermediate Corporate Bond Index impacts the value if funds are withdrawn early. -
Death benefit
Provides the beneficiary with the full account or protected income value upon the policyholder's death.
Product Information
🔔 Important Information
Term
7 Years
Surrender Schedule
8.5%, 8%, 7%, 6%, 5%, 4%, 3%, 0%
Maximum Age
80
Minimum Investment
$25,000
Maximum Investment
$1,000,000
Free Look Period
10 days
RMD
Yes
Agent Fees
2.25 - 4.75%
Power 7 Protector Plus Income 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.
Charges and Fees
The Power 7 Protector Plus Income annuity has certain charges and fees you should know. Here's a breakdown:
- Market value adjustment (MVA): A market value adjustment may apply to withdrawals exceeding the free withdrawal amount during the surrender charge period. This can increase or decrease the amount you receive based on market conditions.
- Income rider fees: If you add an optional income rider, an annual fee will be typically deducted from your account value.
- Administrative fees: The base contract doesn’t have annual administrative fees.
- Premium taxes: In some states, a premium tax may be deducted from your contract value.
You can avoid surrender charges and MVAs by staying within the free withdrawal limits or holding the contract beyond the surrender period. The base contract has no fees unless you choose optional riders. Remember, while there's no explicit fee for the index-linked interest crediting, the participation rates, caps, or spreads effectively limit your potential gains.
Index Options
The Power 7 Protector Plus Income performance annuity offers you a variety of index options to potentially grow your money. You can choose from the following indexes:
-
S&P 500
- ML Strategic Balanced
- MSCI EAFE
- PIMCO Global Optima Index
- Russell 2000
One of the key features of this product is that you're not limited to a single index. You can allocate your funds across a combination of these indexes. This diversification can help spread risk and optimize returns based on different market conditions.
When selecting your index options, consider your risk tolerance and investment goals. Each index has its own characteristics and growth potential. Remember, while these indexes calculate your interest credits, you're not directly invested in the market. The Power 7 Protector Plus Income still provides downside protection, ensuring you won't lose money due to market declines.
Surrender Schedule
The Power 7 Protector Plus Income surrender charges apply if you withdraw more than the allowed free withdrawal amount during the first 7 years. You'll face surrender charges.
The surrender schedule is as follows:
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Charge | 8.5% | 8% | 7% | 6% | 5% | 4% | 3% |
Power 7 Protector Plus Key Features
Power 7 protector plus income reviews should focus on these features:
7-Year Fixed Index
- This product offers the potential for growth linked to major indexes while protecting your principal.
- You commit your money for 7 years, providing a balance between commitment and flexibility.
Tax Deferred Growth
- Enjoy the benefits of triple compounding as your money grows tax-deferred.
- Be aware of the surrender charges for early withdrawals, which start at 8% and decrease annually.
Market Value Adjustment
- Early withdrawals may be subject to a market value adjustment, potentially affecting your returns.
Power 7 Protector Plus Income Pros & Cons
Remember, while the Power 7 Protector Plus Income advantages include attractive benefits, weighing these against the annuity’s risks and limitations is crucial. Consider your financial goals and risk tolerance when evaluating this product's performance and advantages.
-
Principal protection
-
Potential for higher returns
- Tax-deferred growth
-
Multiple index options
-
No direct fees
-
Limited liquidity
-
Capped returns
- Market value adjustment
Company information
Company Name
American General Life Insurance Company
Website
Phone Number
1-800-445-7862
A.M. Best Rating
A (excellent)
Moody’s Best Rating
A2 (Good)
About the Product
Product Name
Power 7 Protector Plus Income
Product Type
Fixed Indexed Annuity
Product Information
Power 7 Protector Plus Income is a fixed indexed annuity offering growth potential, lifetime income, and protection against market downturns with flexible premiums, various crediting methods, and a lifetime income rider.
Account Types
Non-Qualified, Spousal IRA, 401k, IRA, TSA 403b, IRA Rollover, SEP IRA, IRA Transfer, IRA-Roth, Stretch IRA, 1035 Exchange, NQ Stretch, Inherited IRA, and TSP.
Not Available In
NY
Annuity Expert
Jeremiah Konger
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Other Products
American General Life Insurance Company, an AIG member company, offers a variety of annuity products, including
Power 7 Protector
This is a multi-year annuity with a death benefit guarantee and potential for growth over a 7-year term
Power 7 Protector Plus Income
This annuity combines the features of the Power 7 Protector with guaranteed income payments throughout the 7-year term.
Power Index Advisory
This product links your annuity's growth potential to a market index, offering growth potential while protecting your principal.
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