David Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. Before writing full.
David Rodeck Investing Expert WriterDavid Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. Before writing full.
Written By David Rodeck Investing Expert WriterDavid Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. Before writing full.
David Rodeck Investing Expert WriterDavid Rodeck specializes in making insurance, investing, and financial planning understandable for readers. He has written for publications like AARP and Forbes Advisor, as well as major corporations like Fidelity and Prudential. Before writing full.
Investing Expert Writer Rae Hartley Beck Deputy Editor of Investing and RetirementRae Hartley Beck first started writing about personal finance in 2011 with a regular column in her college newspaper as a staff writer. Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 by.
Rae Hartley Beck Deputy Editor of Investing and RetirementRae Hartley Beck first started writing about personal finance in 2011 with a regular column in her college newspaper as a staff writer. Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 by.
Rae Hartley Beck Deputy Editor of Investing and RetirementRae Hartley Beck first started writing about personal finance in 2011 with a regular column in her college newspaper as a staff writer. Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 by.
Rae Hartley Beck Deputy Editor of Investing and RetirementRae Hartley Beck first started writing about personal finance in 2011 with a regular column in her college newspaper as a staff writer. Since then she has become a leader in the Financial Independence, Retire Early (FIRE) movement and has over 300 by.
| Deputy Editor of Investing and Retirement
Updated: Jan 4, 2024, 8:32am
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The American International Group (AIG) has been in business since 1919. They are one of the largest insurers in the world covering many different areas. In 2022, they decided to spin off their individual life insurance and retirement division into a separate company, called Corebridge Financial.
Corebridge Financial continues to offer the same products as AIG, including annuities. If you’re considering an annuity as part of your retirement plan, here’s how Corebridge Financial (AIG) stacks up against the competition.
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The AIG American Pathway Fixed Annuity is a standard fixed annuity.
You can set one up with a guaranteed interest return lasting between one to seven years. At the end of the fixed term, the annuity switches to paying market interest rates. American pathway fixed annuities include popular features like a guaranteed death benefit.
The minimum deposit for an American Pathway Fixed Annuity is $5,000. This annuity does not charge an annual fee.
The Assured Edge Income Achiever is a little more complex. This annuity shows what your guaranteed lifetime income would be once you start collecting payments, based on your total premiums paid. Every year you wait to collect increases this guaranteed income by a fixed, predetermined amount.
In AIG’s product brochure, they showed someone earning $6,000 a year off an initial $100,000 purchase. But every year this person waited to collect payments increased their guaranteed lifetime income by $510 per year. Note these numbers are just an example provided by Corebridge and your actual outcome could be different.
The Assured Edge Income Achiever does charge an annual fee of 0.95% a year of your account balance. You also need at least $25,000 to buy this annuity.
AIG’s Polaris Variable Annuity lets you invest in a wide range of investment funds including those from Fidelity and Morgan Stanley. These funds are spread across 12 different asset classes and include various strategies like Large Growth, Small and Mid-Cap and Emerging Markets. You must deposit at least $10,000 to buy this annuity.
The value of your annuity and your future income depends on the investment performance. However, for an additional fee you can add their Polaris Income Plus Daily Flex rider. This locks in the value of your gains each year for future income. In other words, even if your portfolio value falls, AIG sets their future income payments on your previous high.
The rider also promises a set growth rate for what you would earn with guaranteed lifetime income even during market downturns. This set growth rate is obviously lower than you would expect from standard investments.
AIG’s Polaris Variable Annuity can offer a death benefit with protection against market losses. The death benefit is what your heirs inherit if you die without starting income payments from the contract.
You can set the death benefit to be based either on your initial purchase value or the peak value of the contract during your investments, even if the value falls later.
All these features do add on to the cost of the annuity, which decreases the amount in your pocket . Here are the Polaris Variable Annuity fees:
The AIG Power Series Index Annuity combines market index returns with protection against market losses. For an added fee, you can add riders that boost your return for when you convert your annuity to get guaranteed income for life:
Note that these return guarantees won’t apply if you transfer your contract balance elsewhere instead of collecting annuity income from AIG.
AIG offers one immediate annuity, their American Pathway Annuity. You must deposit at least $10,000 to buy one. There are no annual fees for this contract, standard for immediate annuities.
One extra perk of this immediate annuity is that you can buy it up to age 90. The other AIG products limit you to age 85.
