Independent Review of the AIG Power Index Plus Annuity

What’s Covered In This Review

In this review, we’ll cover the following information on the AIG Power Index Plus Annuity:

• Product Type
• Fees
• Current Rates
• Realistic long term return expectations
• How it is used
• How it is most poorly used

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.

If you are thinking about the purchase of a financial vehicle that can provide you with index-linked growth and protection of principal, along with a lifetime income in retirement, then the AIG Power Index Plus fixed indexed annuity could be a viable option for you.

But, before you move forward with the purchase of this – or of any – annuity, it can be extremely beneficial for you to have a deeper understanding of exactly how a fixed index annuity works, as well as how one of these products may or may not be a fit with your overall financial needs and goals. Over the past several years, annuities have become much more popular. One reason for this is the ability of annuities to offer a guaranteed stream of lifetime income in retirement. And, because of this, the number of insurance and financial professionals who are offering these financial products has increased. This, however, may not necessarily be a positive thing. This is because, even though most financial and insurance agents work hard to do what is best for their customers, they may not always be providing you with all of the answers and information that you need in order to make a well-informed decision. This is particularly the case with regard to the potential drawbacks that should be revealed to you. Also, due in large part to the growing popularity of annuities, the features that may be included on these products have multiplied – which can make these offerings much more difficult to understand, even for well-educated consumers. Given that, it is important that you take some additional steps in order to fully understand what you are buying – as the purchase of an annuity could very well comprise a large amount of your overall retirement savings.

Annuity and Retirement Income Planning Information That You Can Trust

If this is your very first time here on our site, we would personally like to welcome you to AnnuityGator.com. We are a team of experienced financial professionals who are focused on providing you with in-depth, yet unbiased, annuity reviews. We have been offering these reviews for many years via our website – and because of that, we have become a highly trusted source of information. If you have been looking for more information about annuities online, then it is likely that you have run across some conflicting details with regard to these products. This, however, is not at all surprising. There is a myriad of different annuities out there in the marketplace – and there are a lot of people who are touting their features and benefits. There are also many people who have strong opinions about annuities – either positive or negative. Whether or not a particular annuity will be beneficial for you, however, can depend on a number of factors. It is possible that you have also recently attended an annuity seminar where, in return for providing you with dinner or lunch, the presenter at the seminar gave you in-depth details about annuities. This, in fact, may even be the catalyst that has brought you here to our website now. Even though there are plenty of very respectable websites out there on the Internet that are focused on marketing their annuity offerings online, some of these sites can have a way of “luring” visitors in so that you will give them your contact information. In addition, some of these websites can even tout claims about their annuities such as:

• Lowest fees
• Highest income payouts
• Top Rated Companies
• Quick Quotes
• Guaranteed Lifetime Income

While claims like these can at first glance sound ideal, before diving in and purchasing an annuity, it is critical that you first determine whether or not the claims that are being made are even true – just like you would if you were getting ready to purchase any other high ticket item. When doing this, you could essentially find yourself swimming in a myriad of annuity “small print” – which, in turn, could make your hunt for information even more tedious and/or confusing. But, if you are truly wanting to discover more details regarding the AIG Power Index Plus annuity, then you are in the right place now. In fact, dare we say that this website that you have found yourself on is the only place where you will be able to find about all of the information about this annuity – which includes the good, the bad, and yes, even the ugly. In having the whole picture, though, you will be in a much better position to determine whether this annuity is really the right one for you. Oftentimes, when insurance sales reps are offering fixed indexed annuities, they will paint a nice and rosy picture of how the annuity offers the opportunity for growth, as well as protection of principal. But, in their presentation, they may also conveniently leave out some of the primary details about the annuity that could be considered as drawbacks. So, before you start the process of moving a large chunk of your hard earned retirement savings into this annuity, it is best to learn the whole story first. Just so that we are clear, there can be a number of great benefits that are offered with a fixed indexed annuity – as long as the product fits into your overall financial plan. With that in mind, it is not only wise to learn exactly what it is that you are purchasing, but also to know why you may be choosing this annuity over a long list of other possible alternatives. This annuity review is here to help you with better understanding all of the “small print” as it pertains to the AIG Power Index Plus fixed indexed annuity. Therefore, once you have read through it, you will have a clearer idea as to whether or not it is the right annuity for you. So, if you are ready to get started, let’s proceed!

AIG Power Index Plus Annuity

Product Name	Power Index Plus Annuity
Issuer	AIG
Type of Product	Fixed Indexed Annuity
Standard & Poor's Rating	A+
Phone Number	(800) 888-2452
Website	www.aig.com

Opening Thoughts About the AIG Power Index Plus Fixed Indexed Annuity

American Insurance Group, or AIG, was initially founded back in 1919. Throughout the years, this company has grown into a large and well-respected financial entity that offers wealth enhancement and protection products. The company has been provided with high ratings from the insurer rating agencies. These include the following:

• A+ from S&P
• A from A.M. Best
• A2 from Moody’s
• A+ from Fitch

Because of the volatility of the stock market over the past few years, the demand for fixed indexed annuities has risen significantly. One reason for this is because these products can provide you with index-linked growth, as well as the safety of your principal. But, even though this can sound like the best of both worlds, the reality is that you should still do a fair amount of research on a fixed indexed annuity, just as you would do if you were planning to move forward with any other big ticket purchase.

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 Annuity

Based on the information from AIG’s website, the Power Index Plus annuity is “an index annuity designed to help you grow assets while avoiding the risk of losing principal during down markets”. With this annuity, you are able to allocate your money across a wide range of tax-deferred index interest accounts, or a fixed account option. Some of the available indexes include the S&P 500 and the ML Strategic Balanced Index.

How a Financial Advisor Might “Pitch” this Annuity

The AIG Power Index Plus annuity is a fixed indexed annuity product that can help you with building up your savings via potential market-linked return. It can also provide you with the protection of principal if the Index should perform negatively during a given period. This particular annuity can provide you with the opportunity to protect your principal against market loss with a fixed interest account and three index interest crediting strategies. It can further provide benefit in terms of interest crediting strategies that are based in part on the performance of the S&P 500. In addition, you may be able to guarantee rising income for up to ten years by using an optional guaranteed living benefit rider that is available. But, while the points above may make this annuity sound ideal for many people, it is important to read the “fine print”, as these benefits can often times come at a significant cost. For example, the optional living benefit rider will cost an additional annual fee of 0.95 percent of the income base. In addition, while you do have the opportunity to grow funds based on the performance of an underlying index, these returns can often be “capped” at a certain percentage. This, in turn, could actually keep your funds from reaching a higher level. So, even though 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. Given that, if you are not 100 percent sure that the AIG Power Index Plus annuity is right for you – and/or 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 know that annuities can be somewhat confusing – and particularly those that have a number of added bells and whistles like the Power Index Plus Annuity from AIG. This can be the case, even for well-educated consumers – as well as for some financial advisors. However, when you are considering what it is that you want to do with a substantial sum of your long-term savings, it is essential that you know just exactly what it is that you’re getting into. 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 Power Index Plus Annuity?

On top of having a thorough understanding of how your funds may perform within a fixed indexed annuity, it is equally important that you know the type of fees that your money may be subject to, as well as a number of such charges. This is because the fees that you may be assessed on a fixed indexed annuity could be charged both during the annuity’s savings, or “accumulation,” period, as well as after you have started to receive the income stream from it. Just some of these charges could include a sales commission that is paid to the agent who sells you the annuity. There can also be a plethora of contract and/or administration fees on the annuity. You will also be subject to a surrender charge if you wish to withdraw more than 10 percent of your contract value during the first several years after purchase. The surrender charges that could be assessed on the AIG Power Index Plus annuity run for the first full seven years of the contract, and they are outlined as follows:

Contract Year	1	2	3	4	5	6	7	8+
Percentage	8%	7%	6%	5%	4%	3%	2%	0

The Annuity Gator’s End Take on the AIG Power Index Plus Fixed Indexed Annuity

Where it works best: This 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

Where it works the worst: The AIG Power Index Plus Fixed Indexed Annuity may not be such an ideal fit for you if you are looking for:

• Access to most or all of your money within the first seven years

In order to truly get an idea of whether or not a fixed indexed annuity such as the AIG Power Index Plus annuity is right for you, click here so that you can access our free annuity buyer’s report.

In Summary

There are a number of important factors that should be considered when you are determining whether or not a particular annuity – or any annuity – may be right for you. No matter which annuity you go with, you need to know that an annuity should always be considered as a long-term financial endeavor. In this case, when you are thinking about going with a fixed indexed annuity like the Power Index Plus from AIG, you can be assured that your principal will be safe from a volatile stock market. You can also set up the annuity to provide you with a lifetime stream of income in retirement. With that in mind, you can be secure in that you will have some income coming in for the remainder of your retirement years. With regard to the AIG Power Index Plus annuity, then, there can be some great benefits. However, this particular annuity may still fall a bit short. And, quite honestly, there could very well be some better options that are available to you – particularly if you are seeking growth, the safety of principal, and a stream of guaranteed lifetime income in retirement. So, if you still have any questions that have not been answered in this review about the AIG Power Index Plus annuity, or if you would like to discuss with an annuity expert how to best narrow down the right annuity for you, then please feel free to contact us through our secure contact for here.

Have Any Additional Questions About the Power Index Plus Annuity? Did You Happen to Notice Any Mistakes in this Review?

While we do understand that this annuity review of the AIG Power Index Plus annuity is quite lengthy, we feel that it is better to give you more information as versus too little. So, if you did happen to find this review beneficial, please feel free to forward and share it with anyone else that you think may also find value from it. Being in the annuity arena, we realize that the information about these products can – and often does – change regularly. So, if you happened to notice any mistakes or information that needs to be corrected, please let us know and we will be happy to make the needed updates asap. Are there any other annuities that you would like to see reviewed? We will get on it. If you would like to see any other annuity products reviewed on our website, your trained annuity “geeks” will get to work. In order to let us know which annuity – or annuities – you are interested in learning more about, just simply click here and we will have it up soon. Best, The Annuity Gator