American Skandia's New Income Annuity Generates 1,000 Inquiries Per Week - New Twist On Annuities Guarantees Income for Life.
SHELTON, Conn.--(BUSINESS WIRE)--Sept. 6, 2000
A variable immediate annuity product being offered by American Skandia Life Assurance Corporation has customer service phone lines ringing with requests for sales kits of about 1,000 per week, a testament to the interest in the marketplace in the American Skandia Advisor Income Annuity.
Since it was introduced in July, the AS Advisor Income Annuity has become a popular financial product for American Skandia, a financial services company and one of the largest distributors of variable annuity products in the U.S. as of the second quarter of 2000, according to the Variable Annuity Research and Data Service (VARDS).
The AS Advisor Income Annuity is a product that meets the financial challenges of a longer retirement that will most likely be the scenario for today's retirees. The product provides:
- An income they cannot outlive - Opportunity to see their income rise over time, if markets perform well - A cushion against market downturns - Immediate access to the cash value of the annuity - Ongoing asset allocation and fund selection opportunities
"Traditional insurance company solutions weren't able to deal with the issues facing today's retirees," said Wade Dokken, President/Chief Executive Officer of American Skandia. "We're living longer, we're not certain that Social Security will be there for us, we're not sure whether we're safe from inflation, and we no longer have the same kinds of pensions in place that our parents did."
Dokken added, "American Skandia looked long and hard at the changing retirement income needs and priorities of the American investor. Then we launched the AS Advisor Income Annuity. It's the result of recognizing the coming trends in retirement and the need for a new solution that can provide real lifetime income security. It's a next-generation, new model annuity designed to provide monthly payments for life which can still offer investors the ability to participate in the markets."
With $1.1 trillion in deferred variable annuity assets now in force in the industry, the basic product is a popular idea. But to date, most attention has centered on the deferred side, where investors can accumulate assets under a tax-deferred umbrella. The American Skandia spin brings new options and benefits that build more flexibility and security into the "income" or "distribution" phase. With 70 million baby boomers heading toward retirement, there's a need for options such as stable payments regardless of economic conditions.
American Skandia also offers AS Advisor Income Annuity with a Guaranteed Income Option. For an additional one-percent annual fee, investors can purchase extra income protection. With the Guaranteed Income Option, an investor's lifetime annuity payments can rise if the underlying performance is good, but will never fall below the amount of the initial annuity payment regardless of the performance of one's investment options.
If the AS Advisors Income Annuity is purchased with after-tax dollars, the payments are partially tax-deferred until the entire amount invested has been distributed.
The income an investor receives depends upon the initial premium and the performance of the investment options. The monthly annuity payment will not decrease, even in a down market, as long as the annuity has Cash Value. If market performance goes up and increases the cash value, monthly annuity payments will also increase.
Variable annuities, variable life insurance and qualified plans are issued by American Skandia Life Assurance Corporation. Mutual funds are American Skandia Advisor Funds, Inc. All products are distributed by American Skandia Marketing, Incorporated. Both companies are located at One Corporate Drive, Shelton, CT 06484. Products are not available in every state and features may vary by state.
Call 1-800-SKANDIA for a prospectus containing more complete information on charges, expenses and tax consequences. It should be read carefully before investing or sending money.
|Printer friendly Cite/link Email Feedback|
|Date:||Sep 6, 2000|
|Previous Article:||New EMAX Substance Manager Software Accelerates Drug Discovery Process for Pharma and Biotech Industries.|
|Next Article:||H Power Corp. Introduces Advanced Fuel Cell System.|