Protective Guaranteed Income Indexed Annuity review

Yes, for income-focused buyers. It is a good fit for someone age 50 to 79 who wants a long-duration income FIA with built-in lifetime income guarantees and bonuses for deferring income commencement. It is not the right product for accumulation-focused buyers, since the indexed caps are constrained.

The main reason is built-in protected lifetime income with carrier-strength backing. The secondary reason is the bonus structure — buyers who can defer income commencement past year 5 receive a 15% benefit base bonus, and those who defer past year 10 receive an additional 20%. Combined with the 4.0% simple rollup, a buyer who defers income for ten years can see meaningful benefit base growth.

I think this product fits best for someone in their 50s through mid-70s who has a defined retirement income target date several years out and wants a benefit-base-driven GLWB design. The annual step-up feature, where the benefit base resets if account value exceeds it, adds real value when markets perform well during the deferral period.

You are buying an FIA with a mandatory income rider that creates a separate benefit base growing at 4.0% simple plus deferral bonuses. The benefit base is what your future income payments are calculated on; the account value is what you can access for withdrawals or pass to heirs. You are not buying market exposure.

The Lifetime Income Benefit V is mandatory and provides two options. Option 1 pays a level percentage based on age at commencement: 4.50% single at age 60, 5.65% at 70, 6.85% at 80, 7.85% at 90+. Option 2 starts lower (3.50% at 60, 4.50% at 70) but pays a percentage of account value with annual increases of 0.10% to age 95 (or until account value falls to zero, after which level guaranteed payments continue). The 4.0% simple rollup runs for 15 years or until income commences, with annual step-ups when account value exceeds benefit base. The 15% bonus on the benefit base applies if income starts after year 5, and an additional 20% bonus applies if income starts after year 10.

The benefit base bonus structure is the meaningful secondary feature. A buyer who defers income for 10 years receives a 35% combined bonus (15% + 20%) on the benefit base, on top of a 4.0% simple rollup. This rewards patient deferral in a way that few products in the market match.

Free withdrawals are 10% of premiums in year 1, 10% of account value in years 2+ (with a $10,000 minimum balance). Surrender charges scale 9, 9, 8, 7, 6, 5, 4, 3, 2, 1, then 0 percent over ten years, plus a market value adjustment. Nursing home, terminal illness, and unemployment waivers are available.

The mandatory rider charge is 1.20% annually on the benefit base, deducted monthly from account value (in arrears). Maximum future charge is 2.00%. The rider cannot be terminated. The indexed caps are reduced versus accumulation FIAs to fund the guarantees — current S&P 500 caps are 2.95% / 3.25% (standard) and 2.70% / 3.00% (high-cap) at the two rate bands.

| Feature | Details |

| --- | --- |

| Product type | Fixed indexed annuity with mandatory GLWB |

| Issue ages | 50-79 |

| Minimum premium | $25,000 |

| Surrender schedule | 9, 9, 8, 7, 6, 5, 4, 3, 2, 1, 0% |

| Market value adjustment | Yes |

| Free withdrawal | 10% of premiums year 1; 10% of account value year 2+ |

| Crediting options | 3 indexed strategies plus a 1-year fixed account |

| Current fixed account rate | 3.00% / 3.15% (low / $100K) |

| Income rider | Mandatory; 1.20% annual charge on benefit base |

| Rollup | 4.0% simple over 15 years |

| Premium bonus | 15% benefit base bonus if income starts after year 5; additional 20% after year 10 |

| 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 New York; California variation |

Protective Life Insurance Company is part of Protective Life Insurance Corporation. A.M. Best A-plus, S&P AA-minus. Distributed through the independent agent channel.