AIG Power Series of Index Annuities – Lifetime Income With Market Protection

The Power Series of Index Annuities is a fixed indexed annuity issued by American General Life Insurance Company (AGL), a member of Corebridge Financial. It is designed to help retirement savers grow assets without direct exposure to market losses, using index-linked crediting strategies tied to well-known benchmarks and volatility-controlled indexes. The contract offers tax-deferred accumulation, optional guaranteed lifetime income through a GLWB rider, and an Enhanced Income Benefit Rider that provides additional income flexibility for qualifying health events. For a foundational understanding of how this type of contract works, review How Does a Fixed Indexed Annuity Work?

Interest in the Power Series is credited based on the performance of selected market indexes, using one or more of three primary crediting mechanisms: a cap rate that sets a maximum interest credit for the term, a participation rate that determines what percentage of index gains are credited, or a spread that subtracts a defined amount from index performance before crediting. The specific mechanism depends on which crediting strategy you select among the available allocation options. In all cases, if the index performs negatively in a given term, your interest credit is 0% — not a negative amount. Your accumulated contract value is never reduced due to index market losses. For a detailed breakdown of how each mechanism works, see Index Annuity Crediting Methods.

Your principal cannot be reduced by market index losses — the annuity’s 0% floor ensures that negative index performance results in a zero interest credit for the period, not a loss to your accumulated value. However, there are two contract-level factors that can reduce your cash value. First, surrender charges apply to withdrawals taken beyond the penalty-free amount during the surrender charge period — large early withdrawals may result in charges that reduce the value you receive. Second, income rider fees — if you elect the GLWB rider — are deducted annually from the contract’s cash value. Understanding both is essential before committing funds. For full detail on how surrender charges are structured, review Annuity Surrender Charges Explained.

The Guaranteed Lifetime Withdrawal Benefit (GLWB) is an optional rider available with the Power Series that creates a guaranteed income stream designed to last for the rest of your life, regardless of how long you live or how the underlying account value performs. The rider works by establishing a separate income base — which may grow at a declared roll-up rate during the deferral period — distinct from the cash accumulation value. When you activate income, a payout percentage is applied to the income base to determine your guaranteed annual withdrawal amount. Even if systematic withdrawals eventually draw the underlying account value to zero, the guaranteed income continues uninterrupted. Income riders carry an annual fee applied to the income base value. For a detailed explanation of the difference between roll-up rates and payout percentages, see Roll-Up vs. Payout Rate and What Is a GLWB?

The Enhanced Income Benefit Rider is a distinctive feature of the Power Series that addresses one of the most significant financial risks retirees face: unexpected healthcare costs. If the contract owner meets qualifying health conditions — typically related to long-term care needs — income withdrawals from the GLWB may increase for a defined period. This rider is not long-term care insurance and does not replace dedicated LTC coverage, but it provides meaningful supplemental income flexibility during qualifying health events, potentially helping offset care costs without forcing the liquidation of other retirement assets at inopportune times. When integrated properly into a broader retirement strategy, this layer of income flexibility can improve overall financial resilience across extended care scenarios.

The Power Series typically allows penalty-free withdrawals of up to 10% of the account value annually after the first contract year. This provision provides structured liquidity during the surrender charge period without triggering surrender penalties. Withdrawals beyond the penalty-free amount during the surrender charge period may incur surrender charges that reduce the amount received. It is important to plan withdrawals carefully and ensure that the assets allocated to this annuity are not needed for near-term liquidity beyond what the penalty-free provision allows. For a comprehensive explanation of how free withdrawal provisions and surrender schedules interact, review Annuity Surrender Charges Explained.

An immediate annuity converts a lump sum into an income stream that begins right away, typically offering higher initial payout rates because there is no accumulation period. The Power Series with a GLWB rider takes a different approach: assets accumulate through index crediting during a deferral period, the income base potentially grows through roll-up credits, and when income is activated the guaranteed payout is applied to the income base. This structure can produce competitive income levels while preserving the underlying cash value — something immediate annuities generally do not offer. The right choice depends on your time horizon, whether you need immediate income or can allow assets to grow first, and how much flexibility you want to retain after income begins. For context on how guaranteed income options compare, review Roll-Up vs. Payout Rate.

Upon death, beneficiaries typically receive the remaining contract value — the accumulated account value at the time of death. This transfer is made directly to named beneficiaries and typically bypasses the probate process, allowing assets to be delivered efficiently without court delays or administrative burden. The death benefit equals the accumulated contract value and is not subject to market-linked fluctuation, ensuring predictability in what your beneficiaries receive. Proper beneficiary designation at contract issue is critical to ensuring smooth distribution. For detail on how annuity beneficiary designations work and what options are available, review Annuity Beneficiary and Death Benefit Rules.

Yes. The Power Series of Index Annuities is available for both qualified accounts — including Traditional IRAs and funds rolled over from 401(k) plans — and non-qualified after-tax funds. For qualified rollovers, it is important to understand how annuity distributions interact with IRS Required Minimum Distribution rules so that the contract is structured to coordinate properly with your tax obligations. A direct rollover or trustee-to-trustee transfer is typically the most tax-efficient way to reposition qualified funds into an annuity. For guidance on proper transfer procedures and tax considerations, this type of rollover planning benefits from working with an independent broker who can coordinate across both the insurance and tax dimensions of the transaction.

The Power Series is best suited for four primary retirement planning profiles. Pre-retirees aged 55 to 70 who want tax-deferred accumulation with market-linked growth potential during the years before income begins. Income-focused retirees who want to create a guaranteed lifetime withdrawal stream through the GLWB rider that complements Social Security and fills the gap between guaranteed income and essential expenses. Healthcare-conscious planners who want supplemental income protection for qualifying long-term care events through the Enhanced Income Benefit Rider without maintaining a separate LTC policy. And conservative accumulators repositioning bond or CD allocations into a principal-protected vehicle with better tax efficiency and index-linked upside potential. If you are still evaluating whether an indexed annuity structure aligns with your goals, reviewing whether annuities are worth it provides useful additional perspective.