American Skandia's New Income Annuity Generates 1,000 Inquiries Per Week - New Twist On Annuities Guarantees Income for Life.Business Editors
SHELTON Shelton, city (1990 pop. 35,418), Fairfield co., SW Conn., on the Housatonic River opposite Derby; settled 1697, set off from Stratford 1789, inc. as a city 1915. Metal products, furniture, and electronic equipment are among the city's manufactures. , Conn.--(BUSINESS WIRE)--Sept. 6, 2000
A variable immediate annuity immediate annuity
An annuity that is purchased with a lump sum and that begins making payments one period after the purchase. Immediate annuities are most commonly purchased by people who have accumulated a sum of money and are ready for retirement. product being offered by American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of 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 annuity: see insurance.
Payment made at a fixed interval. A common example is the payment received by retirees from their pension plan. There are two main classes of annuities: annuities certain and contingent annuities. .
Since it was introduced in July, the AS Advisor Income Annuity has become a popular financial product for American Skandia, a financial services The examples and perspective in this article or section may not represent a worldwide view of the subject.
Please [ improve this article] or discuss the issue on the talk page. company and one of the largest distributors of 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. products in the U.S. as of the second quarter of 2000, according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. 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 One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. 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 Accumulate
Broker/analyst recommendation that could mean slightly different things depending on the broker/analyst. In general, it means to increase the number of shares of a particular security over the near term, but not to liquidate other parts of the portfolio to buy a security 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 See generation X. 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 annuities
Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. , 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.