Power Index Plus Income from AIG is an annuity product that combines principal protection and growth potential with diverse interest-crediting strategies. This index annuity allows investors to potentially generate more income down, while at the same time shooting down any risk of losing their premiums in a down market.
Power Index Plus Income Annuity Facts
Index Crediting Strategies
You can choose from various index interest accounts based on:
- S&P 500 Index – 2 index interest accounts available that are partially based on the potential of the S&P 500. These are annual point-to-point and the annual point-to-point participation rate.
- ML Strategic Balanced Index – 2 index interest accounts are available based on the performance of the hybrid ML Strategic Balanced Index that diversifies across bonds, stocks and cash to stabilize returns. These are the annual and the two=year point-to-point option.
Riders for More Income
There are two riders available to help increase your income:
- Lifetime Income Plus – this is a guaranteed living benefit rider for the AIG Power Index Plus Income annuity. This particular rider guarantees an income base rise of up to 7% for the 10 first years of the contract. If no withdrawals are made during this period, there’s a realistic potential that your income base will double at the end of the 10th year.
- Lifetime Income Plus Multiplier – this Power Index Plus Income annuity rider allows your income to rise based on interest earned within your annuity. Before you commence taking withdrawals, your income base could grow by an annual credit equal to the interest credited rate, then multiplied by 250%. AIG adjusts this multiplier to 150%, less withdrawals, after you start taking income.
Riders cost an additional annual fee of 0.95% of your income base. The rider needs to be selected at contract issue, and is not changeable after that.
Potential Annuity Benefits
- Growth of retirement assets – this annuity provides an opportunity to earn potential interest from your index of choice, while at the same time protecting your premium from downturns.
- Guaranteed lifetime income – you can choose from 2 living benefit riders that provide reliable retirement income. One option guarantees income growth for up to 10 years, while the other offers a chance to growing income throughout 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 interest 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.org can connect you to some of the leading annuity product specialists in the industry.