American Life Insurance Co. launches annuity with no insurance fees. (Marketplace: Life/Health).The American Life Insurance Company of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of has introduced Direct Annuity, a variable annuity Variable Annuity An insurance contract in which, at the end of the accumulation stage, the insurance company guarantees a minimum payment. The remaining income payments can vary depending on the performance of the managed portfolio. for registered investment advisers that is the first without any insurance charges. Despite no insurance fee, American Life's "all-in" expenses for its 85 investment options average 1.06%, more than the industry's lowest-cost providers, Vanguard and TIAA-CREF TIAA-CREF Teachers Insurance and Annuity Association - College Retirement Equities Fund , which charge small mortality and expense fees and low subaccount charges. Owners of those products can keep annual expenses down to about 0.4% to 0.8% of assets. Mary Kaczmarek of American Life said its lowest equity investment is its Equity 500 Index Fund, managed by Scudder Investments, which costs 0.5 5% annually. "But we offer a large selection of specialty funds specialty fund See sector fund. and a much broader selection of investment styles and managers than either TIAA-CREF or Vanguard," she said. |
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