Why it earned this rating
Our assessment
Asset Builder II 5-Year is Protective's accumulation FIA with six indexed strategies and a fixed account, sold through independent broker-dealers and banks. The crediting menu includes both standard and high-cap S&P 500 strategies, plus a performance-triggered option and a biennial Citi Flexible Allocation strategy. The lack of an income rider and the absence of California approval narrow the audience.
The short version
For accumulation-focused buyers who want principal protection and a 5-year commitment, this is a workable choice. The carrier strength is a real differentiator, and the diversity of crediting options gives buyers room to allocate thoughtfully. The lack of an income rider means buyers seeking guaranteed lifetime income should look at Protective's Income Builder or Guaranteed Income Indexed Annuity instead.
Key facts
**Product Type** Fixed Indexed Annuity (flexible premium first year)
**Issue Ages** 0–85 NQ; 18–85 Q
**Minimum Premium** $10,000
**Surrender Period** 5 years (9, 8, 7, 6, 5, 0%)
**Free Withdrawal** 10% of premiums in year 1; 10% of account value in year 2 and beyond
**Crediting Options** 6 indexed strategies plus a 1-year fixed account
**Income Rider** Not available
**Market Value Adjustment** Yes
The full review
Is Protective Asset Builder II 5-Year a Good Annuity?
Yes, for the right buyer. It is a good fit for someone who wants principal protection, multiple crediting choices, and is comfortable with a 5-year commitment. It is not a fit for buyers who want guaranteed lifetime income or who are residents of California or New York.
Why Someone Would Buy This Annuity
The main reason is accumulation with downside protection through an A-plus carrier. The secondary reason is the breadth of the crediting menu, which includes a JP Morgan Mojave Index strategy at 130% participation and a biennial Citi Flexible Allocation strategy at 170% participation at the $100,000 band — both at the highest rate band, both unusual at this duration.
Who This Annuity Is Best For
I think Asset Builder II 5-Year fits best for someone in their 50s through 70s with a 5-year planning window, a desire for principal protection, and willingness to engage with multiple crediting strategies. The 10% free withdrawal in year one based on premiums (versus account value) is a small but real flexibility advantage.
What You're Really Buying Here
You are buying a tax-deferred FIA with principal protection, multiple ways to earn interest, and the financial backing of one of the stronger-rated annuity carriers. You are not buying market exposure. The product is purpose-built for accumulation rather than income.
How the Core Feature Works
Asset Builder II 5-Year offers six indexed strategies. The first S&P 500 annual point-to-point caps at 5.50% / 7.30% / 8.60% across the three rate bands. The second S&P 500 strategy uses a higher cap structure (5.35% / 7.15% / 8.35%) with a 5.35% guaranteed minimum cap. There is also an S&P 500 strategy with a 26% / 35% / 40% participation rate (no cap), a JP Morgan Mojave Index strategy at 108% / 125% / 130% participation, a biennial Citi Flexible Allocation 6 Excess Return strategy at 140% / 160% / 170% participation, and a performance-triggered S&P 500 option that pays 4.05% / 4.85% / 6.05%.
Why the Secondary Feature Matters
The 5-year surrender window is the secondary feature. Most FIAs in Protective's lineup use 7- or 10-year schedules; the 5-year version trades slightly lower rate ceilings for a shorter commitment, which makes the product easier to fit into mid-range planning horizons.
Liquidity and Surrender Schedule
Free withdrawals start at 10% of premiums paid in year 1, then shift to 10% of account value from year 2. Surrender charges scale 9, 8, 7, 6, 5, then 0 percent over five years, plus a market value adjustment. Nursing home, terminal illness, and unemployment waivers are available — the unemployment waiver is uncommon and worth noting.
Fees and Tradeoffs
The base contract has no rider fee, M&E charge, or annual contract fee. The trade is the rate banding — the low-band buyer gets 3.00% on the fixed account, while the $100,000 buyer gets 3.50%. Surrender charges and MVA apply to early withdrawals beyond the free amount.
Product snapshot
| Feature | Details |
| --- | --- |
| Product type | Fixed indexed annuity |
| Issue ages | 0-85 NQ; 18-85 Q |
| Minimum premium | $10,000 |
| Surrender schedule | 9, 8, 7, 6, 5, 0% |
| Market value adjustment | Yes |
| Free withdrawal | 10% of premiums year 1; 10% of account value year 2+ |
| Crediting options | 6 indexed strategies plus a 1-year fixed account |
| Current fixed account rate | 3.00% / 3.45% / 3.50% (low / $50K / $100K) |
| Income rider | Not available |
| Death benefit | Greater of full account value or minimum guaranteed surrender value |
| Surrender waivers | Nursing home, terminal illness, unemployment |
| MGSV | 87.5% at 1-3% |
| State availability | Not available in California or New York |
Carrier snapshot
Protective Life Insurance Company is part of Protective Life Insurance Corporation. The carrier holds an A-plus rating from A.M. Best and an AA-minus from Standard and Poor's, placing it among the higher-rated annuity issuers. Protective distributes Asset Builder II through independent broker-dealers and banks.
Final take
Asset Builder II 5-Year is a solid accumulation FIA from one of the stronger-rated carriers. The variety of crediting strategies — particularly the dual S&P 500 cap structures and the biennial Citi option — gives buyers real flexibility. Without an income rider and without California or New York approval, the product is squarely positioned for accumulation buyers in other states.