Our Professional Opinion on the Corebridge Power Select Builder Annuity
The Corebridge Power Select Builder is a just-OK accumulation fixed indexed annuity. We like that it includes the true S&P 500 and Russell 2000, provides first-year liquidity, and does not charge a normal annual product fee. We do not like making a 10-year commitment while most caps, participation rates, trigger rates, and fixed rates remain subject to future renewal decisions.
Corebridge is a good annuity company. The contract is issued by American General Life Insurance Company, which is rated A by AM Best and meets our A- minimum standard. The insurer is financially acceptable, but that does not automatically make a 10-year accumulation contract the best choice.
The traditional-index options are the strongest part of the product. Power Select Builder offers annual S&P 500 cap and performance-trigger strategies, a two-year S&P 500 participation-rate strategy, and an annual Russell 2000 participation-rate strategy. We would start there before allocating heavily to the engineered indexes.
The Builder-only Progressive Trigger is interesting, but we would not use it as the primary accumulation strategy. It is a five-year strategy that stores declared percentages in a memory feature during negative observations. If the index later reaches or exceeds its starting value, the current and retained percentages can be used to calculate an interest credit. If the trigger is never met by the end of the term, the contract can wait five years and receive no interest from that allocation.
That is too much waiting and too much uncertainty for our taste. We generally prefer one-year annual point-to-point strategies because the result is easier to understand, interest is measured more frequently, and the owner is not waiting several years for a credit that may never occur.
The biggest issue is renewal control. Corebridge can reset most crediting terms at the beginning of a new index term, subject to contractual minimums. A company can offer attractive terms when the contract is sold and reduce them later while the owner remains inside the surrender period. Buyers who want more certainty should compare annuities designed to reduce renewal-rate risk.
We would generally prefer a cap-lock FIA for protected accumulation. The Oceanview CapLock Fixed Indexed Annuity and Sagicor Sage Accumulator provide contractual locks on traditional-index caps, which is a more useful accumulation feature than a long list of engineered indexes.
Bottom line: Power Select Builder can work for someone who wants a 10-year accumulation FIA and receives competitive S&P 500 or Russell 2000 terms. It is not our first choice because the surrender period is long, the best-looking rates are generally renewable, and the five-year Progressive Trigger can produce a long zero-crediting period. Compare it with shorter cap-lock FIAs and MYGAs before purchasing.
What We Like
- True S&P 500 strategy: The contract includes a widely followed traditional market index rather than forcing every allocation into a proprietary index.
- Russell 2000 option: Buyers can use a traditional small-cap index as an alternative to the S&P 500.
- Several crediting methods: Annual cap, participation-rate, performance-trigger, spread, and multi-year choices provide flexibility.
- First-year liquidity: Up to the applicable annual free-withdrawal amount is available beginning in the first contract year.
- No normal annual base-contract fee: The accumulation contract does not deduct a stated annual product fee merely for owning the annuity.
- Principal protection from direct market losses: Negative index performance does not directly reduce the protected contract value.
- Health-related waivers: Qualifying terminal illness, extended care, nursing-home, or assisted-living events may provide additional access.
- Contract-based death benefit: Beneficiaries generally receive the greater of the contract value or Minimum Withdrawal Value without normal surrender charges.
- A-rated issuing company: American General Life meets our minimum financial-strength standard.
What We Don’t Like
- Ten-year surrender period: The contract requires a long commitment for an accumulation product with renewable crediting terms.
- No cap lock on the standard annual strategies: Most caps, participation rates, trigger rates, and fixed rates can change at renewal.
- Five-year Progressive Trigger: The owner can wait the entire term and receive no interest if the trigger condition is never met.
- The memory percentage is not automatically credited: A declared percentage stored in memory has no value unless the trigger is eventually satisfied.
- Longer crediting terms: Two- and five-year strategies create more timing risk when withdrawals or reallocations are needed.
- Too many engineered indexes: Several strategies use volatility controls, multi-asset allocations, embedded costs, or other rules that make performance harder to evaluate.
- Bitcoin exposure in an engineered index: The Invesco New Economy Index includes a controlled Bitcoin component, adding another layer of complexity without giving the owner direct Bitcoin ownership.
- Market Value Adjustment: Excess withdrawals can be increased or reduced by changes in market interest rates.
- No contractual return of premium: An early surrender can return less than the original deposit after charges and a negative MVA.
- Limited additional-premium window: New money is generally accepted only during the first 30 days rather than throughout the life of the contract.
What Is the Corebridge Power Select Builder Annuity?
Power Select Builder is a modified single-premium deferred fixed indexed annuity issued by American General Life Insurance Company, a Corebridge Financial company. Its primary purpose is protected accumulation.
You can allocate the contract among a one-year fixed account and several index interest accounts. The annuity does not directly invest in the S&P 500, Russell 2000, or any proprietary index. Instead, Corebridge applies a cap, participation rate, spread, trigger rate, or other formula to determine how much interest is credited.
A negative index result generally produces zero index interest rather than a direct market loss. That protection does not make every dollar immediately liquid. Withdrawals, surrender charges, an MVA, and taxes can reduce the amount received.
Power Select Builder Product Details
| Issuing company | American General Life Insurance Company |
|---|---|
| Product type | Modified single-premium deferred fixed indexed annuity |
| Primary purpose | Protected accumulation |
| Withdrawal-charge period | 10 years; state variations apply |
| Issue ages | Generally 18 through 78 |
| Minimum premium | Generally $25,000 |
| Additional premiums | Generally accepted only during the first 30 days |
| Traditional indexes | S&P 500 and Russell 2000 |
| Fixed account | One-year declared-rate account |
| Normal annual product fee | None for the base contract |
| Free withdrawals | Up to 10% of premium in year one and up to 10% of the applicable prior-anniversary value thereafter |
| Market Value Adjustment | Applies to applicable excess withdrawals and certain annuitizations during the withdrawal-charge period |
| Death benefit | Generally the greater of contract value or Minimum Withdrawal Value |
| New York availability | Not available |
How the Index Interest Is Calculated
Power Select Builder uses several different formulas. Understanding the formula matters more than the name of the index.
Index Rate Cap
A cap is the maximum positive index change that can be credited. If the index increases more than the cap, the excess gain is not credited.
Participation Rate
A participation rate multiplies the index change. A high participation rate can look impressive, but it does not guarantee a high return when the underlying index uses volatility controls, excess-return calculations, embedded costs, or large cash allocations.
Spread
A spread is subtracted from the positive index return before interest is credited. A strategy can be uncapped and still provide limited growth when the spread is high.
Performance-Triggered Rate
A performance-trigger strategy credits a predetermined rate when the index is flat or positive at the end of the term. A negative result generally earns no interest.
The Traditional S&P 500 and Russell 2000 Strategies
The S&P 500 is the most transparent index available in the contract. Builder can offer annual point-to-point cap and performance-trigger strategies, along with a two-year participation-rate strategy.
The Russell 2000 provides exposure linked to smaller U.S. companies through an annual participation-rate formula. It can be a useful alternative when the S&P 500 terms are not competitive.
Neither strategy includes direct ownership of stocks or index dividends. The contract result is determined by the annuity formula, not the full total return of the index.
The Engineered Indexes
Power Select Builder also offers several multi-asset and risk-managed indexes. The lineup can include:
- AB All Market Index: Uses adaptive global growth and defensive market exposure.
- Dimensional US Foundations Index: Uses a rules-based combination of stocks, bonds, and commodities.
- Invesco New Economy Index: Uses technology-focused exposure and a controlled Bitcoin component.
- ML Strategic Balanced Index: Combines stocks, bonds, and cash.
- PIMCO Global Optima Index: Combines global equity and U.S. fixed-income exposure.
- S&P 500 Dynamic Intraday TCA Index: Uses dynamic risk management and supports the Builder-only Progressive Trigger strategy.
Some of these indexes include embedded index costs. Those costs are reflected in the index calculation rather than deducted as a separate contract fee. They can reduce the index change before the annuity’s participation rate, spread, or trigger formula is applied.
We would not choose an engineered index because the participation rate is dramatically higher than the S&P 500 rate. The methodology and actual live return matter more than the headline percentage.
How the Progressive Trigger Works
The Progressive Trigger is a five-year strategy available on Power Select Builder. It compares the index at each annual observation with the value at the beginning of the current trigger term.
- If the index is below the starting value, no interest is credited for that observation.
- The eligible declared percentage for that year is retained in the memory feature.
- If the index later reaches or exceeds the starting value, the current declared percentage and eligible retained percentages are combined to calculate the interest credit.
- After the trigger is met, a new trigger term begins with a new starting index value and newly declared percentages.
- If the trigger is not met by the fifth annual observation, no interest is credited, the memory expires, and a new term begins.
The memory feature does not create vested interest each year. It stores a percentage that may be used later. Until the trigger is met, the contract value has not received that interest.
One-Year, Two-Year, and Five-Year Terms
Power Select Builder includes annual, two-year, and five-year index terms. Longer terms can support larger headline rates because the insurer is measuring performance less frequently and holding the allocation in the strategy longer.
We generally prefer the one-year options. They are easier to evaluate and reduce the risk of disrupting an unfinished crediting term with a withdrawal, RMD, or reallocation.
Renewal Rates and Strategy Changes
Corebridge sets crediting terms for each index term and guarantees them only through the end of that term. When the strategy renews, the cap, participation rate, spread, trigger rate, or declared fixed rate may be higher or lower.
An index account can also be discontinued under the contract’s rules. If that happens, the owner may need to move the allocation to another available strategy.
This renewal control is why we would not judge Builder using only the opening rate sheet. Review the current Corebridge annuity rates and terms, contractual minimums, and renewal history before purchase.
Fees and Economic Costs
The Builder base contract does not charge a stated annual product fee. That does not mean the product is cost-free.
- Crediting limitations: Caps, participation rates, spreads, and triggers limit the amount of index growth credited.
- Embedded index costs: Certain proprietary indexes reduce their calculated performance by an embedded cost.
- Withdrawal charges: Excess withdrawals during the first 10 years can be reduced by the surrender schedule.
- Market Value Adjustment: Interest-rate changes can further reduce an early withdrawal.
- Opportunity cost: Weak renewal terms can leave the owner earning less while still committed to the contract.
Free Withdrawals, Surrender Charges, and the MVA
The contract generally allows up to 10% of premium to be withdrawn during the first contract year and up to 10% of the applicable prior-anniversary contract value in later years without normal company-imposed charges.
| Contract Year | Standard Withdrawal Charge |
|---|---|
| 1 | 9% |
| 2 | 9% |
| 3 | 8% |
| 4 | 7% |
| 5 | 6% |
| 6 | 5% |
| 7 | 4% |
| 8 | 3% |
| 9 | 2% |
| 10 | 1% |
| 11+ | 0% |
State schedules can vary. An MVA can also apply to applicable excess withdrawals during the first 10 years. If market interest rates have risen, the adjustment can reduce the amount received. If rates have fallen, it may increase the amount received.
The Minimum Withdrawal Value provides a contractual floor, but it can be less than the original premium. Buyers who expect substantial access should compare annuities with stronger liquidity.
Terminal Illness and Extended-Care Access
Corebridge may waive withdrawal charges and the MVA after a qualifying terminal illness, extended-care need, nursing-home confinement, or assisted-living confinement. Eligibility, waiting periods, medical certification, issue-age limits, and state availability apply.
These provisions provide access to the annuity’s existing value. They do not create an additional pool of benefits and are not a substitute for long-term care insurance.
Death Benefit and Money Left to Family
Before annuitization, beneficiaries generally receive the greater of the contract value, including applicable credited interest, or the Minimum Withdrawal Value. The death benefit is paid without the normal withdrawal charge and can generally pass directly to named beneficiaries outside probate.
This is a contract-value death benefit, not an enhanced legacy multiplier. Someone whose primary objective is maximizing what remains for children or other beneficiaries should compare annuities with enhanced death benefits.
Tax Treatment
Interest in a nonqualified annuity grows tax-deferred. Withdrawals are generally taxed as ordinary income to the extent of gain, and distributions before age 59½ may face an additional federal tax penalty unless an exception applies.
An IRA already provides tax deferral. Placing qualified money in Power Select Builder does not create additional tax deferral, so the contract must justify itself through principal protection, accumulation potential, liquidity, and beneficiary provisions. Coordinate the purchase with the household’s broader IRA and rollover strategy.
Who Should Consider Power Select Builder?
- A conservative saver seeking principal protection and index-linked accumulation.
- Someone who can leave the money in the contract for the full 10-year surrender period.
- A buyer who intends to use the S&P 500 or Russell 2000 rather than relying primarily on engineered indexes.
- Someone whose live traditional-index terms are competitive with shorter accumulation FIAs.
- A buyer who values first-year access and health-related surrender waivers.
Who Should Avoid It?
- Someone who may need substantial access during the next 10 years.
- A buyer who wants the cap or participation rate locked for the entire surrender period.
- Someone attracted mainly by a large participation rate on an engineered index.
- A consumer who does not want to wait two or five years for an index credit to be finalized.
- Someone whose primary objective is guaranteed lifetime income.
- A buyer who wants a contractual return-of-premium provision.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated benefits for qualifying home care, assisted living, or nursing-home expenses.
- Life insurance: May provide a larger income-tax-free legacy when family protection is the main goal.
- Guaranteed lifetime-income annuity: Better suited when the problem is creating a retirement paycheck rather than accumulating assets.
Alternatives to Power Select Builder
A cap-lock FIA: Better when you want a traditional-index cap contractually protected for the surrender period.
A shorter accumulation FIA: A five- or seven-year contract can reduce the time your money remains exposed to renewal-rate decisions.
A MYGA: Better when a guaranteed fixed return matters more than uncertain index-linked upside. Compare current fixed annuity rates.
A different accumulation FIA: Review the current best fixed indexed annuities before accepting a 10-year surrender period.
Our Final Recommendation
We would not use Power Select Builder as our first choice for protected accumulation. It is a respectable contract from an A-rated insurer, and the S&P 500 and Russell 2000 options can be competitive. The problem is the combination of a 10-year surrender period, renewable crediting terms, and complicated multi-year strategies.
Use the traditional indexes, avoid treating the Progressive Trigger memory as earned interest, and compare the contract with cap-lock FIAs and MYGAs. Builder only makes sense when its current terms are strong enough to justify the longer commitment.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Corebridge Power Select Builder with cap-lock FIAs, shorter accumulation annuities, and MYGAs from A- or better-rated insurers. We will compare the traditional-index terms, renewal guarantees, surrender period, MVA, liquidity, death benefit, and insurer strength before you buy coverage.
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Frequently Asked Questions
Is Power Select Builder a good annuity?
It is a just-OK accumulation FIA. The traditional-index menu, first-year liquidity, and A-rated issuer are positives. The 10-year surrender period, renewable terms, and engineered indexes keep it from being one of our preferred accumulation products.
Does it include the real S&P 500?
Yes. The contract includes true S&P 500 index strategies. The annuity does not directly invest in the index, and index dividends are generally excluded from the calculation.
Can Corebridge lower the cap or participation rate?
Yes. Most crediting terms can change when a new index term begins, subject to contractual minimums. The opening rate should not be treated as a 10-year guarantee.
How does the Progressive Trigger memory work?
The strategy can retain eligible declared percentages when the index remains below its starting value. Those percentages are used only if the trigger is later met. If the trigger is not met by the end of the five-year term, no interest is credited and the memory expires.
Does the contract charge an annual fee?
The base Builder contract does not charge a stated annual product fee. Crediting limitations, embedded index costs, surrender charges, and an MVA can still reduce the owner’s result.
Can I withdraw money in the first year?
The contract generally allows up to 10% of premium to be withdrawn during the first contract year without normal company-imposed charges. Excess amounts can be subject to withdrawal charges and an MVA.
What do beneficiaries receive?
Beneficiaries generally receive the greater of the contract value or Minimum Withdrawal Value under the contract’s death-benefit provisions.
What is the better alternative?
For protected accumulation, we generally prefer a cap-lock FIA using a traditional index. A MYGA is better when the buyer wants a guaranteed fixed return for the entire term.