Power 7 Protector Review
The Power 7 Protector is a fixed index annuity with a 7-year surrender period and an array of attractive features and benefits offered by American General Life Insurance Company. This Power 7 Protector review will uncover if it's worth your investment.
About Power 7 Protector
The Power 7 Protector is a fixed index annuity offered by American General Life Insurance Company, a member of the American International Group (AIG), one of the world's largest and most renowned insurance organizations. AIG is headquartered in New York City, USA, and serves millions of customers worldwide. It has provided insurance services since 1919, establishing itself as one of the most reliable annuity companies.
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 Highlights
-
7-Year Fixed Index Annuity
The Power 7 Protector is a 7-year fixed index annuity. It offers a unique blend of growth potential, principal protection from market downturns, and guaranteed income for life -
Free Withdrawals
Beginning in the second year of the contract, up to 10% of the contract value can be withdrawn yearly without surrender charges -
Death Benefit
This annuity waives withdrawal penalties upon death. Your named beneficiary(ies) will receive a death benefit equal to the total accumulation value -
Premium Branded Product
The Power 7 Protector is a premium branded product. The rates you can earn will vary depending on the premium you deposit -
High First-Year Yield
When your full premium deposit is allocated to the fixed interest account, the highest first-year yield available is 5.10% on premium amounts of $100,000 - $1,000,000 -
Index Account Options
You also have the option to distribute your premium among different strategy and index account choices
Power 7 Protector Annuity Overview
🔔 Important Information
Product Type
Fixed Indexed Annuity
Issuing Insurance Company
American General Life Insurance Company
Term
7 Years
Surrender Schedule
8%, 7%, 6%, 5%, 4%, 3%, 2%, 1%
Interest
Varies (linked to a market index)
Premium
Single Premium
Minimum Premium
$25,000
Maximum Premium
$1,000,000
Maximum Issue Age
80 years
RMD / MVA
Yes
Power 7 Protector 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
The good news is that the Power 7 Protector has no additional fees associated with the contract, as no optional GLWB Rider (guaranteed lifetime withdrawal benefit) is available for purchase.
Index Options
The Power 7 Protector allows clients to combine several indexes with a crediting method. Available index options are:
-
S&P 500®
- ML Strategic Balanced
- MSCI EAFE
- PIMCO Global Optima Index
- Russell 2000
Crediting Method
A crediting method is determined by formulas detailing how much interest the annuity gets during the crediting period. Index changes are taken into account. Power 7 Protector recipients can choose among the following crediting methods:
- Portfolio method
- Tiered interest rate method type one
- Tiered interest rate method type two
- Monthly sum
- Annual point-to-point with cap
- Participation rate
Surrender Schedule
It has a Power 7 Protector surrender schedule that applies if you withdraw more than the penalty-free amount during the surrender period.
Here's the Power 7 Protector surrender schedule
| Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Charge | 9% | 8% | 7% | 6% | 5% | 3.9% | 2.7% |
Power 7 Protector Key Feature
Here's an overview of the key features of the Power 7 Protector annuity, such as its market value adjustment (MVA) and penalty-free withdrawals.
Market Value Adjustment (MVA)
- A market value adjustment is an additional fee or credit an annuity provider charges for taking money out early from an annuity.
- MVA changes depending on the Power 7 Protector performance of the chosen index.
- MVA charges only apply to clients who want to withdraw funds early; these fees won't be charged if you own your contract to its maturity date.
Penalty-Free Withdrawals
- Penalty-free withdrawals refer to the amount that can be withdrawn from the annuity each contract year without incurring any company-imposed charges.
- Beginning in the second contract year, Power 7 Protector provides up to 10% (noncumulative) of the contract value as the penalty-free withdrawal amount that may be withdrawn from the annuity each year.
Death Benefits
- The death benefit is the amount that will be paid to the beneficiary upon the annuity owner's death.
- Power 7 Protector waives withdrawal penalties upon death. Your named beneficiary(ies) will receive a death benefit equal to the total accumulation value.
Please note that the issuing insurance company's claims-paying ability backs all annuity contract guarantees. Before making a decision, it's important to understand all the terms and conditions and Power 7 Protector risks of the annuity contract.
Power 7 Protector Pros and Cons
-
Safety and Security: As a fixed-indexed annuity, it offers a unique blend of safety and security. Gains are linked to a positive change in a market index, allowing investors to receive some upside but none of the downside
-
Potential for Higher Returns: The Power 7 Protector offers the potential for higher returns than traditional fixed-income investments like bonds and bank CDs
- Penalty-Free Withdrawals: After the first contract year, you can withdraw up to 10% of the previous contract anniversary contract value without incurring any company-imposed charges
-
Surrender Charges: You will incur surrender charges if you withdraw more than the penalty-free amount during the surrender period. The surrender charges start at 9% in the first year and gradually decrease to 2.7% in the seventh year
-
Market Value Adjustment (MVA): A market value adjustment might be applied to early withdrawals, which could reduce the amount you receive.
- Limited Upside Potential: While the Power 7 Protector provides some of the upside of the linked index, the potential gains are limited by caps, spreads, or participation rates.
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
Product Type
Fixed Indexed Annuity
Product Information
The Power 7 Protector is a fixed-indexed annuity. These annuities are hybrids of indexed and fixed annuities, providing indexed annuity benefits at a fixed interest rate. This means they guarantee a set amount of income payments. Fixed-indexed annuities offer the potential for market-linked growth while providing a guaranteed retirement income stream, making them an excellent option for more conservative investors.
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
PS - Here's 3 ways we can help you learn more about annuities.
1. Watch Videos on How to Identify The Highest Paying Protected Income & Growth Annuities.
2. Watch Videos That Reveal What to Look For When Buying A Protected Growth Annuity.
3. Click Here To Access Our Annuity Review Vault To Compare The Pro's and Con's of Dozens of Annuities.
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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