What’s covered in this Review?
In this annuity review, we’ll cover the following aspects of the AIG Polaris Select Variable Annuity:- Product Type
- Fees
- Current Rates
- Realistic long term investment expectations
- How it is used
- How it is most poorly used
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If you are currently considering the purchase of an annuity that can offer you the opportunity for substantial growth, as well as a lifetime income in retirement, then the AIG Polaris Select Investor variable annuity could be a viable option for you. However, before you run right out and sign on the dotted line in order to purchase this financial vehicle, it is highly recommended that you know exactly how this annuity works, and how it may – or may not – work with your particular financial needs and goals. When reviewing this product, you may notice that, similar to with other annuities, the AIG Polaris Select Investor variable annuity can perform very well in certain circumstances, but that there are also other areas where it may not be up to par. You may have been reviewing annuities online in order to get a better idea of how this – or any other – annuity works. In doing so, you may have noticed that there are many different websites out there on the Internet that market different types of annuity products. Some will even try to “lure” you in by making bold claims such as the highest annuity payouts, the highest returns, and/or the lowest fees. But, even though these features can surely sound enticing, it is important to find out whether or not they are really true. If this is your very first visit to our website, we would first like to officially welcome you here to AnnuityGator.com. We make up a team of highly trained financial professionals who are focused on providing the most comprehensive – and unbiased – annuity reviews. We have been doing this for quite some time now, and because of that, we’ve become known as a highly trusted source of annuity information – which is vastly different from the other “copycat” websites that you may have stumbled across. This annuity review is here to help you with ensuring that the AIG Polaris Select Investor variable annuity is either right for your portfolio or not – and if it is, it can also help you in determining why you may be choosing this particular annuity over a list of other potential products that are available. So, if you are ready to get started, let’s begin!AIG Polaris Select Investor Variable Annuity at a Glance
Product Name | Polaris Select Investor |
---|---|
Issuer | AIG |
Type of Product | Variable Annuity |
S&P Rating | A+ |
Phone Number | (800) 888-2452 |
Website | www.aig.com |
Opening Thoughts on the AIG Polaris Select Investor Variable Annuity
AIG has been in the business of offering financial growth and protection products for nearly a century. In 1919, the company was actually begun in Asia, and over the years, it has grown and expanded exponentially. AIG now has more than 90 million customers and policy holders who span from 100 countries around the globe. Because of its strong financial foundation, AIG has received high marks from the insurer rating agencies, which include the following:- Standard & Poor’s – A+
- A.M. Best Company – A
- Moody’s Investor Services – A2
Before we get into the gritty details, here is some necessary legal information that needs to be disclosed…
This is an independent annuity product review and it does not constitute any type of recommendation to purchase or sell an annuity. AIG has not endorsed this review in any way, and I do not receive any compensation for providing this review. This information is meant to be an independent opinion so that readers may see my personal perspective when determining the potential advantages and/or drawbacks of this particular financial vehicle, and how it may or may not fit into their specific financial portfolio. Prior to purchasing any type of investment or investment product, it is important to pursue your own due diligence and to consult with a competent and properly licensed financial professional before moving forward. This way, you can more precisely ensure that the product and/or service fits in with your individual circumstances. All names, trademarks, and materials that were used in this annuity review are the property of their respective owners.How AIG Describes the Polaris Select Investor Variable Annuity
AIG describes the Polaris Select Investor variable annuity as a financial vehicle that offers more control, more choice, and more experience in terms of how your money will be invested. This annuity has a long list of underlying assets that may be invested in, which in turn, can help you to diversify your annuity funds. Further, diversification could assist you with reducing market risk and lowering volatility. According to AIG, the Polaris Select Investor variable annuity has many respected money managers that were selected for their extensive experience with managing retirement assets, as well as for their investment management style and track record. Just some of these include MFS, J.P. Morgan, Lord Abbett, and T. Rowe Price. By taking advantage of a variety of different asset classes, you can spread out your money – and your risk – throughout a long list of different equity, fixed income/cash, and asset allocation options. When taking your investment approach for the AIG Polaris Select Investor variable annuity, you can either build your own allocation – selected from more than 90 different portfolios – or alternatively, you can choose an asset allocation model that has been carefully designed by Ibbotson Associates, Inc. These allocations actually offer four different models that you can choose from, including:- Model 1 – 50% stocks, 50 % fixed income
- Model 2 – 60% stocks, 40% fixed income
- Model 3 – 70% stocks, 30% fixed income
- Model 4 – 90% stocks, 10% fixed income
How a Financial Advisor Might Pitch this Annuity
In light of the volatile stock market, we’ve seen throughout the past several years, variable annuities have – for the most part – fallen a bit out of favor with some investors. This is especially the case for those who may have lost large sums of money in the 2008 recession. But for others, a variable annuity could fit their needs quite well. For instance, there is the opportunity for a nice strong return in up years. And, given the flexibility of the Polaris Select Annuity, you aren’t locked into just one single investment strategy for the life of the annuity. Here, there are numerous funding allocations that you can choose from – or that you can even designate yourself – along with many of the top managers in the industry. Plus, this annuity is offered via a strong financial and insurance provider. However, if you are being offered the AIG Polaris Select Investor variable annuity from a financial or insurance advisor who stands to earn a commission on the sale, then you need to look out if they only point out the benefits, but leave the potential drawbacks out of the conversation. As most investors are aware, any financial vehicle that is invested in equity related options will carry a certain amount of risk. So, just as you would experience with mutual funds that are held in a personal investment account, if the options that you’ve chosen to put into this annuity go down in value, so will your portfolio. Because of that, if you don’t have a high-risk tolerance, and the ups and downs of the market keep you up at night, then there may just be a better alternative for you.What Fees are Associated with the AIG Polaris Select Investor Variable Annuity?
As with most other annuities – or any investment, for that matter – there are various fees that are associated with the AIG Polaris Select Investor variable annuity. In this case, there are several, including a 1.10% annualized fee that is deducted from the average daily ending net asset value of the base contract, and a $50 maintenance fee (although this maintenance fee may be waived on contracts that have $75,000 or more in the account on the contract anniversary). Also, if you have opted for the optional return of purchase payment death benefit, then there will be an additional fee of 0.30% that is deducted from the average daily ending net asset value that is allocated to the variable portfolios. When considering the Select Investor variable annuity’s underlying investments, the total annual portfolio operating expenses can range from a low of 0.35% to a high of 14.40% – which could certainly have an impact on your total overall return figures. And, if you wish to make transfers of funds between the annuity’s portfolios, you can do so for free the first 15 times, however, after that, there is a charge of $25. As with most annuities, don’t think that you’ll get off scot free when it comes to surrender charges. That’s because the AIG Polaris Select Investor variable annuity has a surrender period that lasts for five full years. This means that if you want or need to withdraw any more than 10% of the contract value within the first five years of purchasing this annuity, you will incur the following surrender charge:Contract Year | 1 | 2 | 3 | 4 | 5 | Thereafter |
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Surrender Charge % | 7 | 7 | 6 | 6 | 5 | 0 |
The Annuity Gator’s End Take on the AIG Polaris Select Variable Annuity
Where it works the best: The Polaris Select Variable Annuity from AIG could be a good option for you if you are:- Looking for the opportunity for a higher rate of return
- Have a higher tolerance for risk, which can allow you endure the volatility of the market
- Seeking to diversify your holdings that can also provide you with ongoing retirement income in the future
- Not planning on using the lifetime income benefit
- Not one who has a high tolerance for risk
- Looking for a vehicle that can provide safety of principal