CoreBridge (formerly American General Life Insurance) Power Protector and Protector Plus Income Annuity Review

The Power Protector is an FIA that provides the annuitant the opportunity to earn returns tied to a market index, without exposing them to the downside risks of the market (interest earned is never zero in flat or down markets). This plan may be particularly fitting for those nearing retirement, who have dual objectives of growing and preserving their retirement savings. For risk-averse investors seeking alternatives to bank CDs, indexed annuities offer a very good fit.

How does the Power Protector Product work?

Any annuitant can purchase this annuity with a minimum initial purchase amount of $25,000, and in return, will earn market index returns (calculated through a formula that we will discuss shortly), credited as per the chosen crediting period.

There are two ways to help provide growth in this FIA:

1. Earn interest based on your choice of four (4) indices:
2. Index Interest Accounts based on equity market indicesS&P 500 - The S&P 500® is an equity index that tracks the performance of 500 of the largest companies in the U.S. It is a product of S&P Dow Jones Indices LLC (“SPDJI”) and has been licensed for use by American General Life Insurance Company (“AGL”) and affiliates.Credit Period1. Annual Point-to-Point with Cap Rate2. Annual Point-to-Point with Participation Rate3. Annual Point-to-Point with Enhanced Participation Rate4. Annual Point-to-Point Performance-TriggeredInterest Accounts based on multi-asset, risk-managed indicesAQR DynamiQ Allocation Index - The AQR DynamiQ Allocation Index aims to optimize returns by providing effective and diversified exposure to global equity and fixed income markets. Employing a styles-based methodology, the Index systematically selects securities and investment instruments that are likely to excel in dynamic market conditions. It leverages advanced data and technology alongside economic and behavioral finance principles to maximize returns. Designed to seize upward market trends, the Index maintains a steady volatility level, which aims to yield stable returns with reduced fluctuations. However, this focus on controlling volatility may also cap the potential for higher gains.ML Strategic Balanced Index- The ML Strategic Balanced Index® is a hybrid index that seeks growth and risk management by actively allocating to equities, fixed income, and cash. The ML Strategic Balanced Index® provides systematic, rules-based access to the blended performance of the S&P 500® (without dividends), which serves to represent equity performance, and the Merrill Lynch 10-year U.S. Treasury Futures Total Return Index, which serves to represent fixed income performance. It embeds an annual index cost in the calculations of the change in index value over the index term. This “embedded index cost” will reduce any change in index value over the index term that would otherwise have been used in the calculation of index interest, and it funds certain operational and licensing costs for the index. To help manage overall return volatility, the Index may also systematically utilize Cash performance in addition to the performance of these two underlying indices. However, this focus on controlling volatility may also cap the potential for higher gains.PIMCO Global Optima Index - The PIMCO Global Optima Index® is a quantitative, rules-based index designed to capture upside from a diverse array of global equity and U.S. bond markets. This innovative index focuses on equity for robust growth potential and embraces global diversification to enhance the set of opportunities available. It is crafted for total return potential, featuring no embedded index-level performance drag and no allowable leverage.Credit PeriodAnnual Point-to-Point Participation Rate2-Year Point-to-Point Participation RateAnnual Point-to-Point Enhanced Participation Rate2-Year Point-to-Point Enhanced Participation Rate
3. 1-Year Fixed Interest Account
4. $100k or more – 4.80%Less than $100k – 4.45%

For current rates, see Current Rates ↑.

The Earnings Crediting Formula

The earnings crediting formula is the most important part of almost any annuity discussion. It is important to know that we don’t simply get the index return credited to the annuity. There are a few rates and caps that the company has in place that affect earnings. These rates tend to change over time, and the updated rates can always be checked with the help of your advisor. The rates listed below are for CoreBridge Power 10 Protector indexed annuity (as of November 2025) only; for the latest Protector 5, Protector 7, and Protector 10 rates, please check with your trusted financial advisor.

From the above, it should be noted that there are four types of rates across this fund, and the rates are dependent upon the amount purchased (greater than or less than $100k).

With most fixed index annuities, you can allocate the money to one or more of the indexes listed above. At the contract anniversary date, the index performance is measured, and the interest rate is calculated using the applicable formula for the indexes selected. This annual reset means that the index performance is reset and re-measured at the next contract anniversary, and your account value is locked in.

Key terms are defined, and example calculations are given below:

Accessing your Money

Should your needs change unexpectedly, and you need to take an excess withdrawal (a withdrawal that is above the free withdrawal amount available in a given contract year), you may be entitled to access additional monies, although certain charges and penalties may apply. Any amount withdrawn more than the remaining free withdrawal amount is subject to a Surrender Charge. Below is the Surrender Charge schedule:

Once the surrender charge period ends, you can typically access your full contract value without fees.

An annuitant can also convert the contract into a stream of guaranteed income, known as annuitization. They can choose from various payout options designed to meet different needs.

• Life Only – Provides income for as long as you live.
• Joint and Survivor Life – Continues payments over two lifetimes, often used by couples.
• Life with Period Certain (up to 30 years) – Pays income for life, but guarantees payments for a minimum period even if death occurs earlier.
• Period Certain (up to 30 years) – Provides guaranteed payments for a set number of years, regardless of lifespan.
• Single Life or Joint Life with Cash Refund – Ensures that if the annuitant(s) pass away before receiving payments equal to the original premium, the difference is refunded to beneficiaries.
• Single Life or Joint Life with Installment Refund – Similar to the cash refund, but any remaining balance is paid out over time in installments.

These options allow flexibility in balancing lifetime income needs with legacy goals, offering a way to customize how and when funds are accessed in retirement.

Waivers

As with most annuities, the Power Protector has free in-built nursing home and terminal illness waivers.

The Earnings Crediting Formula

The earnings crediting formula is the most important part of almost any annuity discussion. It is important to know that we don’t simply get the index return credited to the annuity. There are a few rates and caps that the company has in place that affect earnings. These rates tend to change over time, and the updated rates can always be checked with the help of your advisor. You can also check the latest rates on their website.

See the Rates schedule above under Power 10 Protector.

It should be noted that that there are four types of rates across this fund and the rates are dependent upon the amount purchased (greater than or less than $100k).

With most fixed index annuities, you can allocate the money to one or more of the indexes listed above. At the contract anniversary date, the index performance is measured, and the interest rate is calculated using the applicable formula for the indexes selected. This annual reset means that the index performance is reset and re-measured at the next contract anniversary and your account value is locked in.

Income base is a different account than the account value, and is only used to calculate lifetime income payments. This account holds no cash value, and you can't make withdrawals out of it. According to AGI literature, this rider offers the following benefits:

For current rates, see Current Riders ↑.

• Guarantee rising income base
• Income base will increase by 10% (for every year withdrawals are not taken for the first 10 years)Income base can continue to step up after 10 years if applicable
• Guarantee more retirement income for life (annual withdrawals up to 7.5% maximum)

Flexibility

With this rider, the owner does have the option of penalty-free withdrawals after the first contract year and up to 10% of the contract value. There are also no withdrawal charges up the Maximum Annual Withdrawal Amount (MAWA) and Market Value Adjustments (MVAs) do not apply.

The owner also has access to the money if diagnosed with a terminal illness, need extended care or is confined to a nursing home/assisted living facility. Restrictions apply so consult the salesman and company literature.

More information is tabulated below (table taken from AGI literature available online).

The following are also riders included with the Power Protector Plus Income annuity.

With the advancement in healthcare and technology, the average American today is living longer than ever. At the same time, fewer and fewer companies offer traditional pension plans. The type of plans that can form a solid foundation for a retirement strategy. Thus, it is important to have a steady stream of guaranteed income (aside from Social Security). This not only helps you mitigate the risk of outliving your income but also diversifies your portfolio to help smooth the volatility of retirement planning.

The Power Protector and Power Protector Plus Income annuities are products that, for the right individual or couple, can offer a more secure source of income. And judging by the most recent annual reports, Corebridge Financial is on a solid foundation. In the opinion of this author, these would be good insurance products to investigate if in the market for an index annuity.

Annuities are not direct investments in stocks or mutual funds. They are life insurance products backed by the claims-paying ability of the issuing insurance company. Be sure to read all the fine print and make sure you are aware of all the fees, charges, commissions, and potential taxes that could be incurred. Make sure to read reviews of the company and the salesman, also, and ask for references of previous annuitants.

This is a review of this insurance product and does not serve as specific or individual financial advice. Please speak with a qualified financial advisor prior to purchasing any annuity product.