Is the F&G Power Accumulator 7 Worth It?
For clients who want stock market participation without market risk, the F&G Power Accumulator 7 is a strong option. It pairs a competitive 3.75% fixed rate with indexed crediting strategies that can capture meaningful upside, including participation rates over 100% on volatility-controlled indexes. The tradeoff is a 7-year commitment and a surrender charge that applies to early withdrawals above 10% annually.
Rates as of March 2026
| Product Type | Flexible Premium Fixed Indexed Annuity (FIA) |
| Surrender Period | 7 Years |
| Fixed Interest Rate | 3.75% |
| S&P 500 Cap (1-Year) | 7.25% |
| Floor (Downside Protection) | 0%, principal never declines due to market loss |
| Free Withdrawals | 10% of account value per year (after year 1) |
| AM Best Rating | A- (Excellent) |
| Issuer | Fidelity & Guaranty Life Insurance Company (F&G) |
What Is the F&G Power Accumulator 7?
The Power Accumulator 7 is a flexible premium fixed indexed deferred annuity from F&G Annuities & Life. Unlike most fixed annuities that credit a flat interest rate every year, this product lets you link your growth to the performance of stock market indexes and ETFs, while guaranteeing your principal is never reduced by market losses.
The “7” in the name refers to the 7-year surrender period. After year 7, your account value and surrender value are equal, meaning you can access 100% of your money without penalty. Before that point, you can still withdraw up to 10% per year penalty-free.
The flexible premium feature sets it apart from many competitors: you can make additional deposits after the initial purchase, not just a one-time lump sum. This makes it useful for clients who want to fund the annuity over time, for example, rolling in proceeds from a CD at maturity or adding funds each year.
How the Index Crediting Options Work
Instead of investing directly in the market, the Power Accumulator 7 tracks market indexes and ETFs. At the end of each crediting period (1 or 2 years), F&G calculates how much the index gained and credits a portion of that gain to your account, subject to caps or participation rate limits. If the index fell, you earn zero, not a loss.
There are two types of crediting limits used in this product:
- Cap rate, the maximum interest you can earn in a period. The S&P 500 (IVV) 1-year cap is 7.25%.
- Participation rate, the percentage of the index gain you receive. A 90% par rate on the Balanced Asset 10 means you get 90 cents for every $1 the index gains (before any spread deduction).
Once interest is credited at the end of a period, it’s locked in permanently, it can’t be reversed by future market declines.
Current Rates, Index Crediting Options (March 2026)
| Index / ETF | Crediting Method | Cap | Par Rate | Spread |
|---|---|---|---|---|
| Fixed Rate (No Charge) | 3.75% guaranteed | |||
| Balanced Asset 10 Index™ | 1-Year Point-to-Point with Par | – | 90% | – |
| 2-Year Point-to-Point with Spread & Par | – | 160% | 3.00% | |
| Balanced Asset 5 Index™ | 1-Year Point-to-Point with Par | – | 170% | – |
| 1-Year Point-to-Point with Par & Charge | – | 225% | – | |
| 2-Year Point-to-Point with Par & Charge | – | 285% | – | |
| 2-Year Point-to-Point with Spread & Par | – | 245% | 0.00% | |
| BlackRock Market Advantage Index™ | 1-Year Point-to-Point with Par | – | 135% | – |
| 1-Year Point-to-Point with Par & Charge | – | 180% | – | |
| 2-Year Point-to-Point with Spread & Par | – | 190% | 0.00% | |
| 2-Year Point-to-Point with Par & Charge | – | 220% | – | |
| iShares Core S&P 500 ETF® (IVV) | 1-Year Point-to-Point with Par | – | 40% | – |
| 2-Year Point-to-Point with Spread & Par | – | 55% | 2.50% | |
| 1-Year Point-to-Point with Cap | 7.25% | – | – | |
| 2-Year Point-to-Point with Cap | 14.25% | – | – | |
| iShares Gold Trust® (IAU) | 1-Year Point-to-Point with Par | – | 40% | – |
| iShares MSCI EAFE ETF® (EFA) | 1-Year Point-to-Point with Par | – | 40% | – |
| 2-Year Point-to-Point with Spread & Par | – | 85% | 4.50% | |
| iShares US Real Estate ETF® (IYR) | 1-Year Point-to-Point with Par | – | 40% | – |
| 2-Year Point-to-Point with Spread & Par | – | 65% | 2.50% | |
| Morgan Stanley US Equity Allocator Index | 1-Year Point-to-Point with Spread & Par | – | 75% | 0.00% |
| 1-Year Point-to-Point with Spread, Par & Charge | – | 100% | 0.00% | |
Rates shown are current as of March 2026 and are guaranteed for the initial crediting period. Renewal rates will be declared at the start of each subsequent period and will never fall below the guaranteed minimums stated in the contract.
A Note on Volatility-Controlled Indexes
The high participation rates on the Balanced Asset 5, Balanced Asset 10, and BlackRock Market Advantage indexes, some exceeding 100%, are possible because these are volatility-controlled strategies. They automatically reduce their equity exposure when market volatility spikes, which lowers the cost F&G incurs to offer the strategy. That’s why a 170% participation rate on the Balanced Asset 5 is available while the S&P 500 cap sits at 7.25%.
The tradeoff: in a strong, sustained bull market, the volatility-controlled indexes may not keep pace with the raw S&P 500. In choppy or high-volatility markets, exactly when most retirees need protection most, they often deliver better results than a capped S&P 500 strategy.
Hypothetical Growth Illustration: $100,000 Over 10 Years
F&G prepared this illustration for a 75-year-old male in Arizona using a $100,000 initial premium and an allocation of 25% Balanced Asset 10, 25% Balanced Asset 5, and 50% Morgan Stanley US Equity Allocator. The interest rates below are hypothetical, non-guaranteed and based on current rates as of March 25, 2026, actual results will vary.
| Year | Age | Account Value | Interest Rate | Surrender Value | Death Benefit |
|---|---|---|---|---|---|
| At Issue | 75 | $100,000 | – | $100,000 | $100,000 |
| 1 | 76 | $106,458 | 6.46% | $96,876 | $106,458 |
| 2 | 77 | $130,945 | 23.00% | $120,118 | $130,945 |
| 3 | 78 | $130,945 | 0.00% | $121,517 | $130,945 |
| 4 | 79 | $157,556 | 20.32% | $147,444 | $157,556 |
| 5 | 80 | $175,419 | 11.34% | $165,839 | $175,419 |
| 6 | 81 | $194,493 | 10.87% | $185,646 | $194,493 |
| 7 | 82 | $194,493 | 0.00% | $187,492 | $194,493 |
| 8 | 83 | $210,701 | 8.33% | $210,701 | $210,701 |
| 9 | 84 | $219,337 | 4.10% | $219,337 | $219,337 |
| 10 | 85 | $221,557 | 1.01% | $221,557 | $221,557 |
The highlighted rows (years 8–10) show when surrender charges have ended, account value and surrender value are equal from that point forward. Notice that in year 3 and year 7, the index credited 0%, this is the floor at work. Instead of losing principal, the account simply holds steady and picks up where it left off the following year.
This is a hypothetical illustration only. Past index performance does not guarantee future results. The Market Value Adjustment (MVA) may increase or decrease the surrender value shown. Surrender charges and the MVA apply to surrenders above the free withdrawal amount during the first 7 contract years.
Surrender Charges and Free Withdrawal
The Power Accumulator 7 imposes surrender charges on withdrawals above the free withdrawal amount during the 7-year surrender period. Here is the exact schedule:
| Contract Year | Surrender Charge |
|---|---|
| 1 | 9.00% |
| 2 | 9.00% |
| 3 | 8.00% |
| 4 | 7.00% |
| 5 | 6.00% |
| 6 | 5.00% |
| 7 | 4.00% |
| 8+ | 0.00% |
These charges apply to any amount surrendered above the free withdrawal allowance. The surrender value in the illustration also reflects a Market Value Adjustment (MVA), an adjustment that can work for or against you depending on how interest rates have shifted since purchase. If rates have risen, the MVA reduces your surrender value; if rates have fallen, it increases it.
Each year, you can withdraw up to 10% of your account value penalty-free (after year 1). This can be used to cover living expenses, required minimum distributions (RMDs), or other needs without triggering surrender charges or the MVA.
About F&G Annuities & Life
F&G (Fidelity & Guaranty Life Insurance Company) was founded in 1959 and is headquartered in Des Moines, Iowa. Since 2020, it has operated as a subsidiary of Fidelity National Financial (FNF), one of the largest financial services companies in the country by assets under management.
F&G focuses almost entirely on fixed and fixed indexed annuities, which means the Power Accumulator 7 is not a side product for them; it’s the core of what they do. They have a strong track record of crediting competitive renewal rates, which matters because the current participation rates are only guaranteed for the initial crediting period.
F&G carries an AM Best rating of A- (Excellent), reflecting strong financial strength and a stable outlook. You can verify the current rating directly at ambest.com. Additionally, your state’s insurance guaranty association provides a secondary backstop, most states cover annuity values up to $250,000 per person. See the NOLHGA website for your state’s specific coverage limits.
Pros and Cons
Pros
- Wide index menu, 8 indexes and ETFs spanning U.S. equities, international stocks, gold, and real estate
- High participation rates on volatility-controlled options, up to 285% on the Balanced Asset 5
- Flexible premium, add deposits over time, not just at issue
- 0% floor on all indexed strategies, principal is never eroded by market declines
- Annual gain lock-in, credited interest is permanent and cannot be reversed
- 3.75% fixed rate available as a guaranteed alternative to indexed growth
- A- rated carrier with decades of FIA focus and over $40 billion in assets
Cons
- S&P 500 cap of 7.25%, in a banner year for the market, your upside is limited
- 7-year surrender period, less flexible than a 3- or 5-year MYGA if you need access to capital
- MVA on early surrenders, in a rising rate environment, early exits can be costly
- Renewal rates not guaranteed, current participation rates apply only for the initial crediting period
- Volatility-controlled indexes may underperform in sustained bull markets due to their built-in de-risking
Who Should Consider the F&G Power Accumulator 7?
This product fits best for clients who:
- Are within 5–10 years of or already in retirement and need to protect accumulated savings
- Have a 7-year time horizon and don’t need full access to the money during that window
- Want more growth potential than a MYGA but can’t tolerate the risk of direct market exposure
- Are interested in ETF-based diversification, including international stocks, gold, and real estate, within a protected structure
- Plan to make multiple deposits over time rather than a single lump sum
If you’re looking for guaranteed income in retirement, consider pairing this with an income annuity, the Power Accumulator 7 is an accumulation product, not an income product. For a comparison of how FIAs stack up against other options, see our current MYGA rates and our fixed index annuity guide.
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