What’s Covered In This ReviewIn this review, we’ll cover the following information on the AIG Power Index Plus Income Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
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If you have been thinking about purchasing a financial vehicle that can offer you index-linked growth, as well as the safety of principal – as well as a lifetime income in retirement that cannot be outlived – then the AIG Power Index Plus Income annuity could be a good choice for you. But, before you move full steam ahead with purchasing this annuity – or any annuity, for that matter – it can be extremely beneficial if you have a more in-depth understanding of how the annuity works, as well as how it may – or may not – be aligned with your specific retirement savings and income goals. Over the past several years – especially as the stock market has been more volatile – annuities have become much more popular as a way of offering a stream of guaranteed income in retirement. Because of this, the number of insurance agents and financial professionals who are offering these products has expanded exponentially. But this is not necessarily a good thing. While most financial and insurance advisors do the best thing for their clients, they may not always be providing you with the answers to all of the questions that you have about annuities – especially with regard to any drawbacks that annuities may have. Also, because of the growing popularity of annuities, the features and benefits that are now being offered by these products have expanded a great deal – which can actually make these products much more confusing, even for consumers who are well-educated about them already. With that in mind, it is key for you to take the necessary steps to fully understanding just exactly what it is that you are getting into, particularly because the purchase of an annuity will often times require a significant amount of your retirement savings.
Annuity and Retirement Income Planning Information That You Can TrustIf this is the first time you have visited our website, then let us personally welcome you to AnnuityGator.com. Here, we are a team of experienced financial pros who are focused on offering you in-depth, yet unbiased, annuity reviews. We have been doing this for many years – much longer than our competitors have – and because of that, we have become a highly trusted source of annuity information. If you have been looking for details about annuities through the Internet, it is probable that you may have come across some conflicting information about these products. That is not entirely surprising, as there are a lot of products out there today, along with a wide array of both facts and opinions about them. You may also have recently attended a seminar where the presenter offered you dinner or lunch and provided you with information about the benefits of purchasing an annuity. In fact, you may even have met with the advisor in person afterward in order to determine whether or not an annuity is right for you. It is possible that in your research, you came across our site. Although there are many very good websites that are devoted to marketing their annuity offerings online, some of these have a way of luring visitors in so that you will provide them with your contact information. Some of these sites may even tout claims about their annuities like:
- Lowest fees
- Highest income payouts
- Top Rated Companies
- Quick Quotes
- Guaranteed Lifetime Income
AIG Power Index Plus Income Annuity
|Product Name||Power Index Plus Income Annuity|
|Type of Product||Fixed Indexed Annuity|
|Standard & Poor's Rating||A+|
|Phone Number||(800) 888-2452|
Opening Thoughts About the Power Index Plus Income Fixed Indexed AnnuityAIG has been in the business of offering wealth enhancing and protection products for nearly 100 years. Over time, the company has grown into one of the largest financial and insurance companies in the world. The company has earned a long list of awards and accolades, including a 2016 Business Insurance Innovation Award, a Travvy Award in 2016, and a CIO 100 Honoree award in 2016 for the company’s use of technology. Because of its strong financial foundation, AIG is highly rated by the insurance rating agencies. These ratings include an A+ from S&P, an A from A.M. Best Company, an A2 from Moody’s, and an A+ from Fitch. Due to the constant ups and downs of the stock market – particularly over the past several years or so – the demand for annuities has continued to grow significantly. This is true especially for fixed indexed annuities that can provide you with a higher potential return on your money, while at the same time keeping your principal safe. But, even while these features can at first glance seem quite appealing, it is essential to know exactly what it is that you’re getting into – as getting out at a later time could prove to be extremely costly.
Before we get into the gritty details, here are some necessary legal disclosures…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. AIG has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For additional information on how to compare fixed indexed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How AIG Describes the Power Index Plus Income AnnuityThe Power Index Plus Income annuity is a fixed indexed annuity product that provides you with growth potential and protection of principal, along with a lifetime income that can rise for a specific number of year – or even throughout your whole retirement. Based on the information from the AIG website, the Power Index Plus Income annuity offers both principal protection and the opportunity for more income for life. This annuity can provide a myriad of potential benefits, including:
- Protection of principal when the underlying index is down
- Growth of funds, based on your choice of index interest crediting strategies
- Guaranteed lifetime income through the Lifetime Income Plus or Lifetime Income Plus Multiplier.
- Guarantee rising income for up to ten contract years. The income base here will increase by 7% in years when there are no withdrawals taken.
- Guarantee to double your income base when no withdrawals are taken before the tenth contract anniversary.
- Guarantee lifetime withdrawals of up to 6% per year.
- Guaranteed rising income through annual income credits equal to the amount of interest earned, if any, multiplied by 250% before income begins.
- Guaranteed lifetime withdrawals of up to 6% per year.
- Rising income potential throughout retirement with the 150% Adjusted Multiplier, which can provide you with annual income credits to the interest that is earned – if any – multiplied by 150%, and then is adjusted for any withdrawals. (This rising income potential can continue until the earlier of age 95 or the depletion of the annuity’s contract value.
How a Financial Advisor May “Pitch” this AnnuityThe AIG Power Index Plus Income annuity is a fixed indexed annuity product. It can help you with building up your retirement savings via market-linked return, and it can protect your principal during a time of market downturn. Just like with other annuities, this annuity can also provide you with a set amount of income in the future – including an option for guaranteed income for life. If it happens that an insurance sales agent has approached you about the purchase of the AIG Power Index Plus annuity, then it is probable that he or she focused in on various benefits of the annuity, such as its guaranteed lifetime income and/or the ability to provide you with growth but without having to endure market losses. In fact, by reading over the bullet points above, you may at initial glance feel that this annuity is the real deal and that it could be the perfect vehicle for you. But, the reality is that, if you are being offered this annuity by a commissioned sales rep, then he or she has likely highlighted the advantages, while also leaving out some – or possibly all – of the product’s drawbacks. With that in mind, prior to moving forward with the purchase of this annuity, you may find it to be very beneficial if you read the small print – and when you do, you may find that this annuity is not all that it was originally cracked up to be. For instance, if you look a tad bit closer at the fine print on this annuity, you will find a number of important details – starting with the fact that you can only choose either/or the Lifetime Income Plus or the Lifetime Income Plus Multiplier rider – but not both. If you opt for the Lifetime Income Plus rider, with the guaranteed lifetime withdrawals of up to 6% per year, the guarantee will actually depend on your age at the time of your first withdrawal, as well as the number of individuals that are covered. (For example, both you and your spouse or partner may be covered for lifetime income purposes on this annuity). Also, with regard to “keeping the difference: when you need income within the first ten years of the contract, if you do take any withdrawal during the first ten years, it will void the doubling benefit. Also, there is an additional annual fee of 0.95% charged for the Lifetime Income Plus guaranteed living benefit rider. By taking a deeper dive into the Lifetime Income Plus Multiplier, you will also find that there is a substantial amount of “fine print” here. For instance, you could receive guaranteed lifetime withdrawals of up to 6%, provided that withdrawals are taken within the terms of the rider. In this case, the income base is not used in the calculation of the contract value or any other benefits under the contract, and cannot be withdrawn either partially or in a lump sum. Also, as with the Lifetime Income Plus rider, there is an additional charge to the annuity owner of 0.95% for this rider. Plus, as with many other fixed indexed annuities, even though you may have the opportunity to gain a higher return as compared to a fixed annuity or a CD, the upward movement of the underlying index is typically “capped” at a certain level. This means that if the index being tracked by your annuity has a substantial return in a given year, your return will only be a portion of that. So, while the opportunity for growth and the safety of principal can be nice to have, the reality is that these features can be found on a long list of other fixed indexed annuities, too – and if you are able to find these benefits, while also gaining access to added features, then it may be well worth taking a look at possible alternatives. After knowing this, if you are not completely certain as to whether the AIG Power Index Plus Income annuity is right for you, and/or if you would like to obtain answers to any additional questions that you may have, then please feel free to reach out to us here, via our secure contact form. We realize that annuities can be a bit confusing – and especially those annuities that have a plethora of additional features such as the AIG Power Plus Income fixed indexed annuity. So, if you would like to have any additional information, along with the assurance that you know what it really is that you are purchasing, click here now to download our free report on what you need to know prior to purchasing an annuity.
What About the Fees Associated with the AIG Power Index Plus Income Annuity?On top of having a more in-depth knowledge regarding how your funds may perform in a fixed indexed annuity, it is also important that you know the type and the amount of any additional charges and fees that you may be assessed. The fees that are charged in a fixed indexed annuity may not always be clearly evident – however, they can truly add up. This is especially the case if fees are charged during both the accumulation period and the income period. Just some of the fees that you can incur on a fixed indexed annuity include an up-front sales commission that is paid to the agent or representative who sold you the product. In addition, if you want to withdraw more than10% of your contract value during the first several years of owning the annuity, you will also be assessed a surrender charge. On the AIG Power Index Plus Income annuity, the surrender charges run for a total of seven full years, and they are outlined as follows:
The Annuity Gator’s End Take on the AIG Power Index Plus Income Fixed Indexed AnnuityWhere it works best: This particular annuity may work the best for people who are looking for the following features:
- Safety of principal
- The opportunity for index-linked growth
- Guaranteed lifetime income in retirement, plus the option to potentially generate even more income for life
- Access to most or all of your money within the first seven years