Power 10 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.
Fees and Charges
If you withdraw money from the contract within the first ten contract years, a withdrawal charge may be imposed. The Power 10 Protector Plus Income withdrawal charges decrease annually during this period.
This charge does not apply to the 10% free withdrawal amount. A market value adjustment (MVA) is applied to amounts subject to withdrawal charges, which can be either positive or negative.
Generally, if interest rates have risen, the MVA may decrease the amount you receive from a withdrawal. On the other hand, if interest rates have fallen, the MVA may increase the amount you receive.
Index Options
To improve your Power 10 Protector Plus Income performance, you can select from multiple available indexes to combine it with your crediting method. The options are as follows:
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S&P 500® Index
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MSCI EAFE Index
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ML Strategic Balanced Index™ (MLSB)
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PIMCO Global Optima Index™ (PIMCO)
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Russell 2000® Index
Crediting Methods
A crediting method is a mathematical formula used to determine the amount of indexed interest the annuity earns based on the index changes during the 'crediting period.'
The Power 10 Protector Plus Income utilizes various interest crediting methods, including both index interest account methods and a fixed interest account.
All available options are listed below:
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S&P 500® Index: 1-Year Point-to-Point with Cap
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S&P 500® Index: 1-Year Participation Rate with Spread
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PIMCO Global Optima Index1-Year Point-to-Point
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PIMCO Global Optima Index Participation Rate
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ML Strategic Balanced Index 1-Year Point-to-Point
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ML Strategic Balanced Index Participation Rate
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Russell 2000® Index 1-Year Point-to-Point
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Russell 2000® Index Participation Rate
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MSCI EAFE Index 1-Year Point-to-Point
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Fixed Account Option
Annuity Surrender Charge Schedule
As with any annuity, Corebridge Financial charges penalties if you withdraw funds from the annuity contract early. These penalties, known as annuity surrender charges, are calculated as a percentage of the withdrawal amount. The penalties decrease over time and eventually are no longer valid when the term ends.
The Power 10 Protector Plus Income surrender schedule works as follows:
Power 10 Protector Plus Income Key Features
Take a look at the Power 10 Protector Plus Income key features and take them into consideration before you make your decision:
Market Value Adjustment (MVA)
- In simple terms, a market value adjustment is an additional charge or credit applied when you withdraw money from your annuity early.
- They make it possible for providers to pay a higher rate and make longer-term investments.
- You will only be affected by MVA if you take your funds out early. If you own the contract to maturity, you will not have to cover these additional costs.
RMD-Friendliness
- One of the Power 10 Protector Plus Income benefits is its compatibility with Required Minimum Distributions (RMDs). RMDs mandate that you withdraw a minimum amount from your retirement account each year based on your age.
- Some annuities can complicate taking RMDs. For example, if an annuity has surrender charges (penalties for early withdrawal), withdrawing your RMD could trigger these charges and lower your payout.
- RMD-friendly annuities, such as the Power 10 Protector Plus Income, are designed to avoid issues with RMD requirements.
Pros and Cons
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Multiple indices and crediting methods to select from
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RMD compatibility
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Percentage of balance withdrawals
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High ratings from the best rating companies
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Policy provisions allowing partial access without a penalty
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Penalty waivers: ADL-based, death, extended care, and terminal illness
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Plus Income feature which offers even higher financial security
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MVA on withdrawals
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10-year surrender period
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$25,000 minimum premium
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Single premium (not possible to add funds to the contract)
Key Takeaways
Overall, Power 10 Protector Plus Income can be a solid annuity option. It provides a variety of indices and crediting methods, allowing you to select the ones that suit your needs and capabilities the most.
Additionally, this annuity is RMD-friendly and includes provisions that permit partial access to funds without penalties, along with several penalty waivers. If the minimum premium of $25,000 is within your budget and you are aware of the possible Power 10 Protector Plus Income risks, this could be a great choice for you.
On the other hand, if you do not need the Plus Income feature and would like a simpler annuity, you may be more interested in the original Power 10 Protector, also offered by Corebridge Financial.
Company information
Company Name
Corebridge Financial
Website
Phone Number
800-448- 2542
A.M. Best Rating
A (excellent)
Moody’s Best Rating
A2 (sixth-highest)
S&P'S BEST RATING
A+ (middle of the investment grade)
About the Product
Product Name
Power 10 Protector Plus Income
Product Type
Fixed Indexed Annuity
Premium Type
Single Premium
Product Information
Index annuities are ideal for conservative investors who prioritize safety. Introduced in 1995 to compete with bank CDs, they provide fixed income-like returns without direct exposure to market ups and downs.
As fixed annuities, they offer a balance by allowing some participation in the growth of a market index while ensuring 100% downside protection. The returns are tied to positive performance in an external index.
While you are not directly investing in the market, a formula determines how much of the index's gain you receive, providing a safer investment option.
Account Types
Personal, Traditional IRA, Roth IRA, SEP-IRA, SIMPLE-IRA, 403(b).
Not Available In
CA, NY, PR, VI
