Independent Annuity Review

AIG

Power Select Plus Income

Fixed Index Annuity


BY JEREMIAH KONGER


AIG - Power Select Plus Income

Annuity Type:  Fixed Index

A.M. Best Carrier Rating A

Surrender Schedule: 10 years

Included Riders: Lifetime Income Plus Flex (1.1% fee), or Lifetime Income Plus Multiplier Flex (1.1% fee)

Optional RidersN/A

Premium Bonus: N/A

Free Withdrawal:  10% Annual

SURRENDER CHARGE SCHEDULE
year year year year year year year year year 10 year
10% 9% 8% 7% 6% 5% 4% 3% 2% 1%

There is no doubt that the overall retirement picture looks a little murkier today than it did this time last year. And, even though this crazy time period feels like a tough way to judge an economic picture, it is a firm reminder that it is hard to rely on something that isn’t a guarantee. After all, there are a number of different events that can throw off an economy, and there’s no promise that it won’t happen when you can least afford it.

 

Think about a world where you primarily rely on the stock market as retirement arrives. Everything seems bright until an unforeseen circumstance destroys your economic foundation. Now, you’re worried about how you will live the kind of retirement lifestyle that you deserve after a lifetime of hard work. This isn’t the fate that anybody should have to deal with, and the good news is that there are alternative options.

 

When it comes down to it, a lot of financial guarantees don’t carry the highest payout ceilings. All it takes is a quick check with your local bank to find out that CDs, bonds, money markets, and even savings accounts won’t give you the kind of growth that you can rely upon during your golden years. However, there are safe financial outlets that can make a major difference in your retirement.

 

The right annuity represents an important opportunity for many people, especially in today’s uncertain financial world. If you find the annuity that works best for your circumstances, you may just find a future filled with guaranteed lifetime income, as well as safe growth that is protected from the risk of the marketplaces.

 

Different annuities bring different priorities to the table, and some of them even offer multiple variations to help you find something perfect for your situation. If you are looking for a lifetime full of guaranteed income, the AIG Power Select Plus Income Annuity may fit in well with your plans. Plus, it contains a number of features that can enhance your options, and put you in a strong position for your retirement.

 

The AIG Power Select Plus Income offers an available feature called the Lifetime Income Plus Flex. This rider comes with an annual income credit of 7%, which means a guarantee of 7% growth on your Income Base for the first decade of your contract. Additionally, you will have the ability to begin withdrawals from this annuity without losing that income credit bonus. This is a great way to build up a strong base of lifetime income, without having to sweat out whether the markets are doing well that week.

 

Additionally, the AIG Power Select Plus Income offers another feature called the Lifetime Income Plus Multiplier Flex. This option allows you to double the interest earned each year for more income later, or match interest earned for more income now. The former option is a great way to receive a “pay raise” during retirement, by keeping the possibility of doubling annual interest earned before activation. The latter option puts the focus on the present, and allows for rising income even after lifetime withdrawals begin.

 

To help you determine the right income rider option, we've provided a link to AIG's Guaranteed Lifetime Income Estimator site here so you can see how Lifetime Income Plus Flex and Lifetime Income Plus Multiplier Flex guaranteed living benefit riders can provide opportunities for rising lifetime income.

 

Despite all of these options for building lifetime income, this annuity does have its shortfalls. The AIG Power Select Plus Income does not offer the same kind of powerful growth options that may be found in other annuities, if your priority is utilizing a market index linked strategy to try to get the highest growth possible with zero downside risk. Additionally, though this annuity does have a confinement rider for those with long-term care issues, there are other annuities with a bigger focus on this area, often times enhancing the guaranteed lifetime income in the contract to 2x the amount for long-term care needs. Finally, those looking to leave a legacy behind will find better death benefits in other annuities.

AIG Power Select Plus Income Index Annuity

Speak With A Fiduciary Advisor About This Annuity

AIG Power Select Plus Income

What We Like


  • Increasing Income AIG's Power Select Plus Income offers a competitive strategy amongst other Fixed Index Annuities for the opportunity to earn increasing lifetime income based on how the market linked index strategy performs.

  • Flexible Income Riders Depending on your needs, the riders offered in this annuity are ideal for both people looking for income now or income later.  Both options allow attractive income base growth opportunities.

  • Strong Renewal Rate History Overall, 99% of renewal rates were better, the same, or no worse than 0.50% from their initial rates.

What Can Be Improved


  • Participation Rates/Index Strategy compared to other comparable Fixed Index Annuities, the participation rates and index options offered are average at best.

  • No Enhanced Payout Option for LTC

Want to Compare This Annuity Now?

Free Annuity Comparison Report

AIG Power Select Plus Income Brochure

Download Product Brochure

AIG

Power Select Plus Income

 Fixed

Index Annuity

Learn more about this annuity now.