AG Choice Index 10 is an index annuity from AIG that generates a stable stream of income for retirees, while at the same time protecting the principal from market downturns. Optional riders may be acquired for guaranteed lifetime income.
Choice Index 10 Annuity Facts
4% Premium Enhancement Bonus
AIG gives investors in the AG Choice Index 10 index annuity a 4% premium enhancement (premium bonus) on all premium payments made within the first 30 contract days. This bonus vests over a period of 10 years, and is automatically allocated to interest crediting strategies that you selected. If you selected the Income Plus optional rider, this bonus is also added to income base.
Index Credit Strategies
This annuity offers 4 index interest credit strategies to choose from, each of which allows you to earn money based on performance of a well-established industry index:
- S&P 500 – there are 3 index accounts available under the S&P 500 Dow Jones index.
- ML Strategic Balanced Index – this is a hybrid market index that keeps track of positions in fixed income and equity as well as cash. There are also 2 index sub-accounts to choose from under this category.
Penalty-free Withdrawals
Any time after the first contract anniversary, investors can withdraw as much as 10% of their contract value without any charges from the company. Investors who acquire the Lifetime Income Plus rider never have to incur charges as long as their withdrawals are below the MAWA (Maximum Annual Withdrawal Amount).
Withdrawal Charge
Any withdrawal above the free withdrawal cap is subjected to withdrawal charges over a schedule of 10 years.
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
| Percentage (%) | 10 | 9 | 8 | 7 | 6 | 5 | 4 | 3 | 2 | 1 | 0 |
Beneficiaries Protection
With the AIG AG Choice Index 10 annuity product, death benefit proceeds are directly passed to named beneficiaries, without probate. There’s no rider required for this.
Optional Income Growth Riders
Investors can choose from two income growth riders with the AG Choice Index 10 annuity from AIG.
- Lifetime Income Plus – this is a guaranteed living benefit rider that provides an income base rise by as much as 7% over the first ten years of the contract. If no withdrawal is made within this period, there’s a real potential for income base doubling on the 10th contract year.
- Lifetime Income Plus Multiplier – another guaranteed living benefit option, the Lifetime Income Plus Multiplier offers potential for growing income based upon interests earned within your annuity. Prior to taking withdrawals, the income based may grow by a yearly income credit that’s equal to the interest credit rate factored by 250%. The company adjusts this to 150%, less withdrawals, once you start receiving income.
Potential Benefits
- Growth potential – protection for your principal, with a realistic growth potential based on your selected interest-crediting strategy.
- Guaranteed lifetime income – with any of the two guaranteed living benefit riders available with AG Choice Index 10 annuity from AIG, you’ve got the potential for rising income either over 10 years or thorough your retirement.
Talk to an Annuity Product Specialist
Buying an index annuity can be a complicated process for the average investor. Unless you’re very familiar with crediting strategies, rider benefits and other factors surrounding any index annuity, you are going to need a little bit of professional help. At no cost to you, AnnuityBroker can connect you to some of the leading annuity product specialists in the industry.
