Power Index 5 (NY) review

Yes, for the right New York buyer. This is a solid pick for someone who wants principal protection with index-linked growth potential and prefers a 5-year window over a longer lockup. It's a weaker fit for anyone whose main goal is guaranteed lifetime income, because this version has no living benefit rider at all, or for someone who could buy the open-market Power Index 5 Plus in another state and capture its higher caps.

The main reason to buy this is accumulation with downside protection inside a contract New York actually approves. Many strong FIAs are simply not sold in New York, so the practical menu for a New York resident is smaller. This product gives that buyer a shorter 5-year surrender schedule, a fixed-account floor, and no rider fees for features they may never use. For a conservative New York saver who wants more upside than a CD or MYGA but isn't chasing income, that's a rational fit.

I think this is best for a New York resident, roughly in the pre-retirement or early-retirement years, who has $25,000 or more to set aside for at least five years and wants principal protection with some index participation. It works for both qualified and non-qualified money. It's less attractive for someone who wants the simplest possible fixed rate, someone who expects to need more than the 10% free-withdrawal amount, or anyone whose top priority is rider-based lifetime income — none of which this contract is built to deliver.

You are not buying the stock market. You're buying a principal-protected insurance contract that credits interest based on how a chosen index performs, shaped by caps and a participation rate rather than the raw index return. If the index is down, your credited interest for that term is zero — but your principal doesn't drop. That distinction is the whole point: this is protection first, with index-linked growth potential second. The "5" in the name refers to the 5-year surrender commitment, not a guaranteed rate of return.

The contract offers two crediting methods across four indices — the S&P 500, MSCI EAFE, Nasdaq-100, and Russell 2000. The primary method is an annual point-to-point with a cap: each year the index's change is measured from one anniversary to the next, and you're credited that gain up to a ceiling. As of the brochure date (rates effective May 4, 2026), those caps run about 6.00% to 7.50% depending on index and premium band, with a 100% participation rate up to the cap. The second method, Performance Triggered, is available on the S&P 500 and Nasdaq-100: it credits a flat declared rate (4.60% to 5.60% as of the brochure date) whenever the index is flat or positive, and nothing when it's negative. The guaranteed minimum is a 100% participation rate with a 2.85% cap — that's the floor the caps can never drop below.

The most meaningful secondary feature is the 5-year duration itself. Plenty of FIAs ask for seven or ten years of commitment; here the shorter window is part of the appeal, especially for a New York buyer who wants protection and growth potential without a decade-long lockup. The fixed-account floor and the guaranteed 2.85% minimum cap matter too — they put a hard bottom under the contract so that even in a low-rate environment you know the worst case for index credits. For a conservative buyer, that floor is reassurance, not a headline.

This is long-term retirement money, not emergency cash. After the first contract year you can withdraw up to 10% of the prior anniversary value each year without a charge, as long as you leave at least $2,500 in the contract. Anything above that during the surrender period gets hit with the withdrawal charge in the table above — starting at 8% in year one and stepping down to 4% in year five. One genuine advantage of this New York contract: there is no market value adjustment, so unlike the open-market sibling, your surrender charge won't swing with interest rates. Required minimum distributions attributable to the contract are not subject to withdrawal charges, though they do count against your 10% free amount, and waivers are available for terminal illness and extended care.

There's no explicit annual contract fee and no rider fee, because this version carries no living benefit rider. The cost here isn't a line item — it's structural. Your upside is capped, so in a strong market year you'll leave gains on the table above the cap. The Performance Triggered option can lag in a sharply rising market, since it pays a flat rate regardless of how far the index climbs. And the caps on this New York contract run lower than the national Power Index 5 Plus, which is the price of New York's product rules. None of these are hidden fees; they're the trade you make for principal protection inside a New York–approved contract.

Legal Entity: The United States Life Insurance Company in the City of New York

Parent: Corebridge Financial, Inc.

AM Best Rating: A