Fixed index annuity review and rates

Power Select Builder 8

Power Select Builder 8 is part of The Power Series of Index Annuities — fixed index annuities FIAs) that are issued by American General Life Insurance Company (AGL). They are insurance contracts, not direct investments in the stock market or any particular index. In exchange for your money (premium), the FIA provides you with the opportunity to earn interest based on specific indices or a fixed rate. When you need income, AGL promises to make regular income payments through annuitization (a process that permanently converts your contract to retirement income for no cost).

Premium Bonus
Power Select Builder 8 offers a 10% premium enhancement (state variations apply) or bonus on all premiums made in the first 30 days of the contract. This bonus is calculated as a percentage of your premium and is automatically allocated to the interest crediting options you select. The bonus is an upfront cash bonus deposited as part of initial deposit.  

Bonus Recapture (i.e., a return of a portion of the bonus amount)
If you pass away, annuitize, fully surrender your contract or take withdrawals greater than the Free Withdrawal amount before the full premium enhancement is locked into your contract value, AGL will recapture all or a portion of your premium enhancement, The recapture amount will be applied on a pro-rata basis, meaning that your premium enhancement will be reduced by the same percentage that the withdrawal in excess of the Free Withdrawal amount reduced the annuity's contract value.  Please see the recapture schedule below:

Available in states: AL, AK, AZ, AR, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NC, ND, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, WV, WI, and WY

Allocation Accounts

Name Type Rates
1-Year Fixed Account
Fixed
3.25% Fixed
1-Year S&P 500 PTP Cap
Point to Point
Annual
5.25% Cap
1-Year AB All Market PTP Enhanced Participation Rate Tier 1
Point to Point
Annual
175% Participation
1-Year AB All Market PTP Enhanced Participation Rate Tier 2
Point to Point
Annual
225% Participation
2-Year AB All Market PTP Enhanced Participation Rate Tier 1
Point to Point
Biennial
225% Participation
2-Year AB All Market PTP Enhanced Participation Rate Tier 2
Point to Point
Biennial
275% Participation
1-Year Dimensional US Foundations PTP Participation Rate
Point to Point
Annual
125% Participation
2-Year Dimensional US Foundations PTP Participation Rate
Point to Point
Biennial
175% Participation
1-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 1
Point to Point
Annual
175% Participation
1-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2
Point to Point
Annual
225% Participation
2-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 1
Point to Point
Biennial
225% Participation
2-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2
Point to Point
Biennial
275% Participation
1-Year S&P 500 PTP Participation Rate
Point to Point
Annual
27% Participation
1-Year PIMCO Global Optima PTP Participation Rate
Point to Point
Annual
45% Participation
2-Year PIMCO Global Optima PTP Participation Rate
Point to Point
Biennial
55% Participation
2-Year ML Strategic Balanced PTP Participation Rate
Point to Point
Biennial
105% Participation
1-Year AB All Market PTP Participation Rate
Point to Point
Annual
125% Participation
2-Year AB All Market PTP Participation Rate
Point to Point
Biennial
175% Participation
1-Year Fixed Account
Fixed
3.25% Fixed
1-Year S&P 500 PTP Cap
Point to Point
Annual
6% Cap
1-Year AB All Market PTP Enhanced Participation Rate Tier 1
Point to Point
Annual
200% Participation
1-Year AB All Market PTP Enhanced Participation Rate Tier 2
Point to Point
Annual
250% Participation
2-Year AB All Market PTP Enhanced Participation Rate Tier 1
Point to Point
Biennial
250% Participation
2-Year AB All Market PTP Enhanced Participation Rate Tier 2
Point to Point
Biennial
300% Participation
1-Year Dimensional US Foundations PTP Participation Rate
Point to Point
Annual
150% Participation
2-Year Dimensional US Foundations PTP Participation Rate
Point to Point
Biennial
200% Participation
1-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 1
Point to Point
Annual
200% Participation
1-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2
Point to Point
Annual
250% Participation
2-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 1
Point to Point
Biennial
250% Participation
2-Year Dimensional US Foundations PTP Enhanced Participation Rate Tier 2
Point to Point
Biennial
300% Participation
1-Year AB All Market PTP Participation Rate
Point to Point
Annual
150% Participation
2-Year AB All Market PTP Participation Rate
Point to Point
Biennial
200% Participation
2-Year ML Strategic Balanced PTP Participation Rate
Point to Point
Biennial
115% Participation
2-Year PIMCO Global Optima PTP Participation Rate
Point to Point
Biennial
70% Participation
1-Year PIMCO Global Optima PTP Participation Rate
Point to Point
Annual
60% Participation
1-Year S&P 500 PTP Participation Rate
Point to Point
Annual
30% Participation

Surrender schedule

Year 1 2 3 4 5 6 7 8
Penalty 8% 8% 7% 6% 5% 4% 3% 2%
American General Life Insurance Company
Founded: 1919
A.M. Best: A
Fitch: A+
S&P: A
Moody's: A2
Carrier details
Free withdrawal
1st year: 0%
2nd+ year: 5%
Premium bonus
10%
Surrender schedule
8 years
Return of premium
Market value adjustment
Minimum contribution
$25,000
Types of funds
Non-Qualified, IRA, Spousal IRA, IRA Rollover, IRA Transfer, SEP IRA, IRA-Roth, Stretch IRA, Inherited IRA, NQ Stretch, and TSP