Our Professional Opinion on the F&G Accelerator Plus 10 Annuity
F&G Accelerator Plus 10 is a legitimate guaranteed-income annuity that is worth comparing, but SecureIncome 7 is the cleaner F&G starting point for most deferred-income buyers. Accelerator Plus combines a guaranteed 5% compound roll-up with a separate performance path, so it does not depend entirely on future index returns. That is materially better than a purely performance-based rider.
F&G is a strong annuity company. F&G is rated A by AM Best and meets our A- minimum financial-strength standard. The decision comes down to the guaranteed payout, rider fee, ten-year surrender period, bonus vesting, and how much the performance multiplier actually contributes.
The rider tracks two possible Income Base calculations and uses the greater value when lifetime income begins. One path grows first-year premium at a guaranteed compound rate. The other applies a growing multiplier to account value, subject to a ceiling. This hybrid structure is better than relying only on index-dependent income, but the guaranteed path is still only one part of the payout calculation.
The first-year bonus is not the main reason to buy this annuity. It vests over ten years and increases the account value under the contract rules. Compare that premium bonus with the separate Income Base values and surrender value so the numbers are not blended together.
The current rider fee is a percentage of the Income Base and can be accompanied by another charge on selected enhanced index strategies. The product can therefore layer an income fee, a crediting-strategy fee, surrender charges, and an MVA.
The actual guaranteed payment is the deciding factor. The current payout factors are easy to understand and increase in five-year age bands. Multiply the applicable factor by the Income Base and compare the resulting single- or joint-life payment with every competitive A- or better-rated insurer.
The impairment multiplier can temporarily increase income after a qualifying inability to perform two activities of daily living, but it generally ends when account value reaches zero. It is not a substitute for dedicated long-term care coverage.
Bottom line: Accelerator Plus 10 is worth a quote when the buyer can leave the money in place for ten years and wants a hybrid guaranteed-and-performance income formula. We would choose it only when its actual payout beats or closely matches cleaner products after considering the higher fee, long surrender period, and bonus vesting.
What We Like
- Guaranteed and performance income paths: The rider does not rely entirely on future index credits.
- 5% compound roll-up: First-year premium receives a contractual guaranteed Income Base path for the stated period.
- Performance multiplier: Strong account growth can create a higher Income Base than the roll-up path.
- Clear payout-factor bands: Current single- and joint-life factors increase at stated ages.
- Income can continue for life: Permitted withdrawals continue after the account value is depleted.
- Single- and joint-life income: The rider can cover one annuitant or two covered lives.
- True S&P 500 options: The index menu includes familiar traditional-index strategies.
- Impairment multiplier: Qualifying owners can temporarily receive a larger payment.
- Annual liquidity: Up to the applicable percentage of vested account value is available after year one.
- Death benefit includes applicable bonus value: Beneficiaries receive the account value under the contract rules.
What We Don’t Like
- Ten-year surrender period: The commitment is longer than SecureIncome 7 and other competitive income products.
- Bonus vests over ten years: The full headline bonus is not immediately available for surrender.
- Income rider fee: The annual charge is assessed against the Income Base rather than only the cash account.
- Optional strategy fee: Certain enhanced crediting options deduct another annual charge.
- Performance path has a ceiling: The multiplier cannot grow without limit and is constrained by the rider formula.
- Additional premiums receive weaker treatment: The main Income Base formulas focus on first-year premium and can exclude later money from key calculations.
- Engineered indexes: Many strategies use volatility controls, spreads, and short live histories.
- Renewal-rate risk: Future crediting terms remain under insurer control.
- Care enhancement can end: The larger payment generally stops after account depletion or loss of eligibility.
- No contractual return of premium: Early surrender can return less than the original deposit.
What Is F&G Accelerator Plus 10?
Accelerator Plus 10 is a flexible-premium bonus fixed indexed annuity with a ten-year surrender period and a guaranteed minimum withdrawal benefit. It is designed primarily for lifetime income, although the account value can also receive fixed or index-linked interest.
The product tracks an account value and a separate Income Base. The account value supports withdrawals, surrender, and the death benefit. The Income Base exists to calculate the guaranteed withdrawal payment and rider fee.
Accelerator Plus 10 Product Details
| Feature | Current Product Design |
|---|---|
| Product type | Flexible-premium bonus FIA with guaranteed lifetime withdrawals |
| Issue ages | Generally 0–85 nonqualified and 18–85 qualified |
| Minimum premium | $10,000 |
| Surrender period | Ten years |
| Premium bonus | Age- and state-dependent bonus on first-year premium, vesting over ten years |
| Guaranteed Income Base path | 5% compound growth on first-year premium for up to ten years, income start, or age limit |
| Performance path | Account value multiplied by a factor growing to a stated maximum, subject to the rider formula |
| Income rider fee | Currently 0.95% of the Income Base annually |
| Free withdrawal | Generally up to 10% of vested account value after year one |
How the Two Income Base Paths Work
At income activation, the rider compares the performance value and roll-up value and uses the greater applicable Income Base.
| Income Path | How It Works | Main Limitation |
|---|---|---|
| Performance value | Uses the lesser of a multiple of first-year premium or eligible account value multiplied by a growing performance factor | Depends on account growth and is capped by the rider formula |
| Roll-up value | Grows first-year premium at 5% compound interest for the stated period | Later premiums do not receive the same primary roll-up treatment |
The performance multiplier begins above 100% and increases annually until the earliest of the stated time limit, income activation, or applicable age limit. Under the current design, it can reach 175%. This does not mean the owner earns a 175% return. It is a multiplier used inside the Income Base calculation.
The performance value is also limited by the lesser-of formula. Marketing may highlight the maximum multiple, but the account value and rider ceiling determine how much of that number is actually usable.
The Guaranteed 5% Roll-Up Path
The roll-up path grows first-year premium at 5% compound interest. That is a real contractual Income Base roll-up, not an account-value return. The owner cannot surrender the roll-up value or take it as a lump sum.
Withdrawals before income begins reduce the roll-up value proportionally. Starting income also ends the deferral growth under the normal rider rules.
Current Guaranteed Withdrawal Percentages
The annual payment equals the Income Base multiplied by the applicable withdrawal factor. Under the current schedule, factors increase in five-year age bands:
| Income Start Age | Single Life | Joint Life |
|---|---|---|
| 50–54 | 3.50% | 3.00% |
| 55–59 | 4.00% | 3.00% |
| 60–64 | 4.50% | 4.00% |
| 65–69 | 5.00% | 4.00% |
| 70–74 | 5.50% | 5.00% |
| 75–79 | 6.00% | 5.00% |
| 80–84 | 6.50% | 6.00% |
| 85+ | 7.00% | 6.00% |
These factors are for current new business and can change before a contract is issued. The younger covered person’s age generally controls joint-life income.
Single-Life and Joint-Life Income
Single-life coverage produces the larger payment but protects only one life. Joint-life coverage should be used when both spouses depend on the annuity. Review the ownership and joint-and-survivor income requirements before purchase.
The joint factor is lower because payments can continue over two lifetimes. Choosing single life merely to increase the initial payment can create a serious income gap for the surviving spouse.
Premium Bonus and Vesting
The year-one premium bonus varies by state and issue age and vests in equal portions over ten years. The death-benefit calculation can include bonus amounts differently from an ordinary surrender.
Compare the bonus with the contract’s surrender value and fees. A premium bonus versus income bonus comparison helps separate the account-value increase from the separate rider values used to calculate income.
Rider Fee and Strategy Charges
The current income rider charge is calculated from the Income Base and deducted from account value. Some enhanced index strategies can add a separate 1.25% annual charge under the current design. Review the combined annuity fees rather than discussing either fee alone.
A fee-based strategy must earn enough extra interest to overcome its annual charge. The strategy fee can still be deducted in a year when no index interest is credited.
Index Crediting Options
Accelerator Plus includes the S&P 500 and several engineered choices from CIBC, Barclays, BlackRock, Goldman Sachs, and Morgan Stanley.
The formulas use combinations of participation rates, spreads, caps, and performance triggers. The index result is measured first and then adjusted by the annuity formula.
Many proprietary choices are volatility-controlled indexes. A large participation rate can be paired with lower equity exposure or an embedded index cost, so it cannot be compared directly with a plain S&P 500 cap.
Illustrations and Renewal Risk
An annuity illustration can show the performance value outgrowing the guaranteed roll-up. That result depends on future credits, current allocation assumptions, and renewal terms.
F&G can change future caps, participation rates, and spreads, subject to contract minimums and maximums. The ten-year surrender period can remain in force after those terms have changed.
Liquidity, Surrender Charges, and MVA
After the first contract year, the owner can generally take up to 10% of vested account value through the penalty-free withdrawal provision. The standard schedules include:
| Contract Year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11+ |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Higher-charge schedule | 14% | 13% | 12% | 11% | 10% | 8% | 6% | 4% | 2% | 1% | 0% |
| Common alternate schedule | 9% | 9% | 8% | 7% | 6% | 5% | 4% | 3% | 2% | 1% | 0% |
An applicable Market Value Adjustment can further reduce or increase a chargeable withdrawal. Excess withdrawals can also reduce the Income Base and guaranteed payment.
Keep enough liquid savings outside the annuity or compare products with better liquidity if large irregular expenses are likely.
Impairment Multiplier and Health Waivers
After the required waiting period, a qualifying impairment can increase the guaranteed payment to 200% for single life or 150% for joint life under current terms. The account value must remain above zero, and medical certification is required.
Home-health, nursing-home, and terminal-illness provisions may separately waive charges. These crisis waivers give access to existing money but do not create long-term care coverage.
Anyone concerned about extended care should compare the rider with dedicated long-term care insurance, especially because the enhanced annuity payment can end after account depletion.
Death Benefit
Beneficiaries generally receive the applicable account value, including bonus treatment provided by the contract, without surrender charges or MVA. The Income Base is not paid at death. Compare enhanced death-benefit products when legacy is a primary objective.
Tax Treatment
Nonqualified interest grows tax-deferred and is generally taxed as ordinary income when distributed under annuity tax rules. An early distribution may also face the 10% federal penalty unless an exception applies.
An IRA already provides tax deferral. Qualified money should be used because the income guarantee and principal protection fit the retirement plan, not for an additional tax benefit. Coordinate eligible RMDs with the rider and free-withdrawal amount.
Who Should Consider Accelerator Plus 10?
- A buyer who wants a guaranteed roll-up plus a performance opportunity.
- Someone who can leave the money in place for the ten-year surrender period.
- A retiree whose contract-specific guaranteed payout is competitive with leading income annuities.
- A married couple willing to use joint-life coverage when both spouses need income.
- A consumer who understands the bonus, account value, performance value, roll-up value, and Income Base are different.
Who Should Avoid It?
- Someone who needs a shorter surrender period or greater access.
- A buyer attracted mainly by the bonus or maximum 175% performance multiplier.
- A consumer who wants a stronger guaranteed roll-up independent of index performance.
- Someone who may add substantial premium after the first year and expects identical rider treatment.
- A buyer relying on the impairment multiplier as long-term care insurance.
Other Insurance Coverage to Consider
- Long-term care insurance: Provides dedicated benefits that can continue after annuity account depletion.
- Life insurance: Can preserve a legacy while the annuity is used for retirement income.
- Medicare Supplement coverage: Helps manage healthcare expenses separately from the income rider.
Alternatives to Compare
F&G Safe Income Advantage: Compare a more traditional guaranteed-income design using the same premium, age, and start date.
A shorter income FIA: A seven-year contract can provide more flexibility when the guaranteed payout is similar.
A no-bonus income annuity: Compare whether cleaner economics and fewer vesting restrictions produce more usable income and account value.
Check current F&G annuity rates and payouts and the broader fixed indexed annuity market before applying.
Our Final Recommendation
We recommend quoting Accelerator Plus 10, but we would not make it the automatic F&G choice. The hybrid Income Base is better designed than a performance-only rider, yet SecureIncome 7 and other carriers may provide cleaner guaranteed income with shorter surrender periods. Choose Accelerator Plus only when the actual payout justifies its ten-year commitment and layered fees.
Contact The Annuity Expert for free quotes and a no-obligation comparison of Accelerator Plus 10 with guaranteed-income annuities from A- or better-rated insurers. We will compare the roll-up path, performance value, payout factors, rider and strategy fees, joint-life protection, liquidity, care benefit, death benefit, and insurer strength before you buy coverage.
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Frequently Asked Questions
Is F&G Accelerator Plus 10 a good annuity?
It is a credible income annuity worth quoting, but we recommend it only when the actual guaranteed payout justifies the ten-year surrender period and fees.
What are the two Income Base paths?
One path uses a performance multiplier on eligible account value. The other grows first-year premium at a guaranteed 5% compound rate. The greater applicable value is used at income activation.
Does the 175% multiplier mean I earn 75%?
No. It is a factor used inside the Income Base formula and is also limited by the lesser-of calculation. It is not the account return or cash value.
Are later premiums treated the same as first-year premium?
No. The primary roll-up and performance formulas focus on first-year premium, and later money can receive different rider treatment.
Can the impairment payment continue after account depletion?
The enhanced amount generally stops when the account value reaches zero. The ordinary guaranteed payment may continue if rider rules are followed.
Which F&G income product do we compare first?
SecureIncome 7 is the cleaner starting point because of its shorter surrender period and stronger guaranteed roll-up. Accelerator Plus can still win when its actual payout is higher.