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New York Life Lets Lifetime Income Annuity Customers Capitalize on Potential Interest Rate Increases; New Feature Allows Customers to Increase Future Lifetime Income While Receiving Guaranteed Payments That Will Never Decrease.


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
 -- New York Life Insurance and Annuity annuity: see insurance.
annuity

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.
 Corporation(1) today announced the Income Enhancement Option, a new optional feature available for its Lifetime Income Annuity that gives policyholders the best of both worlds: the ability to secure guaranteed lifetime income and potentially benefit from higher interest rates in the future. Policyholders selecting the Income Enhancement Option(2) know that while their guaranteed payments can increase when interest rates rise, their payments will never decrease, no matter how low interest rates decline.

"With Americans living longer in retirement than at any time in history, guaranteed lifetime income is an essential element of retirement income planning," said Paul Paul, 1901–64, king of the Hellenes (1947–64), brother and successor of George II. He married (1938) Princess Frederika of Brunswick. During Paul's reign Greece followed a pro-Western policy, and the Cyprus question was temporarily resolved.  Pasteris, senior vice president, New York Life. "Our goal is to deliver lifetime income options that can meet a wide variety of customer needs. Through this new option, customers receive the security and peace of mind of a guaranteed paycheck for life today, combined with the opportunity to participate in potential gains from rising interest rates tomorrow. This is another way to offer flexible guaranteed lifetime income together with the stability and financial strength that only New York Life can provide."

When policyholders select the Income Enhancement Option, their annuity income can increase to reflect higher interest rates if a benchmark index is at least 2% higher on the policy's fifth anniversary than it was at the time the policy was purchased.(3) These higher monthly payments will continue for the rest of the policyholder's life. The potential increase amount is fixed when a policy is purchased and is clearly illustrated to policyholders. If the benchmark rate does not increase by 2%, policyholders will continue to receive the same income amount they purchased when they bought the policy, guaranteed for life. The policy's benchmark index is the Federal Reserve Board's Ten-Year Constant Maturity Treasury Index.

For example,(4) a 65-year old male who purchases a Lifetime Income Annuity with the Income Enhancement Option might receive $500 monthly for the first five years. If the benchmark index rate is at least 2% higher on the policy's fifth anniversary, the monthly payment will increase 18% to $590, totaling more than $16,200 in additional income over the next fifteen years, and $32,400 if the policy owner lives to age 100.

This new Income Enhancement Option joins a selection of other Lifetime Income Annuity innovations. The recently introduced Changing Needs Option(5) adds longevity longevity (lŏnjĕv`ĭtē), term denoting the length or duration of the life of an animal or plant, often used to indicate an unusually long life.  protection to the cash flow management role that retirees seek from immediate annuities 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.
. It allows policyholders to increase or decrease future annuity payments to suit personal needs and preferences. This product also offers an inflation protection option(6) and a number of other flexible features, including the ability to accelerate some payments to meet short-term Short-term

Any investments with a maturity of one year or less.


short-term

1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time.
 needs and a one-time withdrawal feature that enables policyholders to access a portion of their future payments if needed.(7)

New York Life Insurance and Annuity Corporation is a subsidiary of New York Life Insurance Company The New York Life Insurance Company (NYLIC) is the largest mutual life-insurance company in the United States, and one of the largest life insurers in the world.[3] , a Fortune 100 company founded in 1845. New York Life Insurance Company is the largest mutual life insurance company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area.  and one of the largest life insurers in the world. Headquartered in New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
, New York Life's family of companies offers life insurance, annuities, and long-term care long-term care (LTC),
n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders.
 insurance. New York Life Investment Management LLC (Logical Link Control) See "LANs" under data link protocol.

LLC - Logical Link Control
 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.

Please visit New York Life's Web site at www.newyorklife.com for more information.

(1) New York Life Insurance and Annuity Corporation is a wholly owned subsidiary Wholly Owned Subsidiary

A subsidiary whose parent company owns 100% of its common stock.

Notes:
In other words, the parent company owns the company outright and there are no minority owners.
 of New York Life Insurance Company.

(2) The Income Enhancement Option must be elected at the time you purchase your policy. It is available only on non-qualified policies in approved jurisdictions. The owner of the policy must be 59 1/2 at the time of the first payment, and the annuitant Annuitant

1. A person who receives the benefits of an annuity or pension.

2. The person upon whom a life-insurance contract is based.

Notes:
1. In other words, the annuitant is the beneficiary of an annuity or pension.

2.
 must be age 75 or younger at the time the policy is issued. If electing a joint policy, there may be no reduction of benefits. If you elect the Income Enhancement Option, neither the Changing Needs Option nor the Inflation Protection Option are available.

(3) The higher income benefit will be paid if the difference between the Ten-Year Constant Maturity Treasury Index rate in the third full week of the calendar month immediately preceding the policy date and the third full week of the calendar month immediately preceding the fifth policy anniversary is 2% or more. The higher income benefit would begin on the first scheduled payment following the fifth policy anniversary.

(4) The example is hypothetical Hypothetical is an adjective, meaning of or pertaining to a hypothesis. See:
  • Hypothesis
  • Hypothetical
  • Hypothetical (album)
 and your situation may differ. It is not intended to predict or project investment results. Please consult your New York Life agent to discuss your individual situation.

(5) This option is currently not available in all jurisdictions.

(6) This feature is available only if the annuity owner is over age 59 1/2 at the time of the first payment.

(7) Only available on non-qualified policies and if the owner is agent 59 1/2 or older. Amounts received may be fully taxable. Some features are not available in all jurisdictions.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Comment:New York Life Lets Lifetime Income Annuity Customers Capitalize on Potential Interest Rate Increases; New Feature Allows Customers to Increase Future Lifetime Income While Receiving Guaranteed Payments That Will Never Decrease.
Publication:Business Wire
Geographic Code:1USA
Date:Jul 24, 2006
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