Annealable insulated metal-based powder particles and methods of preparing and using the same are provided. The insulated metal-based powder particles are formed from metal-based core particles that are coated with an annealable insulating material. The annealable insulating material has at least one inorganic compound and at least one organic polymeric resin. The inorganic compound in the insulating material forms a nonporous insulating layer surrounding the metal-based core particles upon heating. The organic polymeric resin preferably aids in dispersing or binding the inorganic compound to the metal-based core particles prior to annealing. The insulated metal-based powder particles produced can be formed into core components that can be annealed to improve the magnetic performance of the core component. The core components produced are particularly useful under AC operating conditions of 500 Hz or lower.