Corebridge Financial (formerly AIG Life & Retirement) offers a suite of fixed index annuities designed to provide principal protection, tax-deferred growth potential, and a reliable income stream in retirement. The Power Protector series includes three main products: Power 5 Protector, Power 7 Protector, and Power Protector 10. These products share a common foundation but differ primarily in their surrender charge periods and associated features.

Shared Features of the Power Protector Series

All annuities in the Power Protector series offer the following key benefits:

 

• Principal Protection: Client funds are not subject to market losses.

• Tax Deferral: Earnings grow tax-deferred until withdrawal.

• Indexing Options: Interest is credited based on the performance of an external market index (or indexes), without direct participation in the stock market. Common index options may include the S&P 500 and proprietary indices.

• Crediting Methods: Interest is typically calculated using crediting methods like Cap Rates, Participation Rates, and Spreads.

• Guaranteed Lifetime Withdrawal Benefit (GLWB): A rider, often optional for an additional fee, that provides a stream of income guaranteed for life, even if the account value drops to zero.

 

 

Power 5 Protector

The Power 5 Protector is designed for clients seeking a shorter commitment period while still accessing the benefits of a fixed index annuity.

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Key Details

Feature

Description

Surrender Charge Period

5 years

Minimum Initial Premium

Varies by state; typically $5,000 - $10,000

Liquidity

Free withdrawal amount (e.g., up to 10% of the accumulation value) typically begins after the first contract year.

Bonus

May offer an initial premium bonus, subject to specific contract terms and state availability.

Target Client

Individuals nearing retirement who prioritize liquidity and flexibility over the longest potential growth period or highest guaranteed income base.

Potential Benefits

• Lower commitment provides earlier access to funds without surrender charges.

• Suitable for laddering strategies or for clients who anticipate needing access to a larger portion of their principal sooner.

 

 

Power 7 Protector

The Power 7 Protector is the mid-range offering, balancing a reasonable surrender period with potentially enhanced growth opportunities and income features compared to the Power 5.

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Key Details

Feature

Description

Surrender Charge Period

7 years

Minimum Initial Premium

Varies by state; typically $5,000 - $10,000

Liquidity

Free withdrawal amount (e.g., up to 10% of the accumulation value) typically begins after the first contract year.

Bonus

May offer a higher initial premium bonus or slightly more favorable caps/participation rates than the Power 5, depending on the current offering.

Target Client

Individuals in the pre-retirement phase (5-10 years out) who are looking for a moderate commitment period to grow their assets before locking in a lifetime income stream.

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Potential Benefits

• The 7-year term often provides a balance between shorter-term liquidity and longer-term growth potential.

• It is a common "sweet spot" for many fixed index annuity investors.

 

 

Power Protector 10

The Power Protector 10 represents the longest-term commitment in this series, often corresponding to the highest potential for accumulation growth and the most robust guaranteed lifetime income base features.

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Key Details

Feature

Description

Surrender Charge Period

10 years

Minimum Initial Premium

Varies by state; typically $5,000 - $10,000

Liquidity

Free withdrawal amount (e.g., up to 10% of the accumulation value) typically begins after the first contract year.

Income Base Features

Often features the most aggressive Roll-Up Rate or Growth Factor on the Income Base (used for calculating lifetime income withdrawals) compared to the shorter-duration products.

Target Client

Individuals significantly pre-retirement (10+ years out) or those prioritizing the maximization of their future guaranteed lifetime income stream, willing to commit funds for the full 10-year term.

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Potential Benefits

• Maximum potential for compounding growth over a longer period.

• The longest commitment term typically allows Corebridge to offer the most competitive features, especially regarding the guaranteed lifetime income base growth.

 

 

Comparison Summary

The primary distinguishing factor among the three products is the duration of the surrender charge period, which correlates with the potential long-term benefits and income features offered.

 

Feature

Power 5 Protector

Power 7 Protector

Power Protector 10

Surrender Term

5 years

7 years

10 years

Focus

Flexibility/Liquidity

Balance

Maximize Growth/Income

Income Base Growth

Lower/Moderate Potential

Moderate/High Potential

Highest Potential

Liquidity Post-Term

Earliest

Mid-Term

Longest Wait