New life & annuity products emphasize better guarantees.In recent product introductions, life insurance and 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. writers have sought to entice buyers with guarantees, especially for living benefits.
Prudential Annuities, the domestic 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. arm of Prudential Financial Inc., has added three optional living benefits to the deferred variable-annuity product lines it acquired May 1,2003, in its purchase of American Skandia Life Assurance Corp. One option guarantees a minimum accumulation after seven years at an annual cost of .25% of the variable account balance. For .50%, policyholders may buy a minimum income benefit that increases at 5% annually. A minimum seven-year waiting period is required. Lastly, a minimum withdrawal benefit of up to 7% of the guaranteed amount costs .35%. Prudential said it is the only brand to offer all three benefits across one product line.
Nationwide Financial has enhanced its Capital Preservation Plus optional rider on its Best of America variable annuities Variable annuities
Investment contracts whose issuer pays a periodic amount linked to the investment performance of an underlying portfolio. to offer up to 100% equity exposure while maintaining a return-of-principal guarantee. Guaranteed terms run from three to 10 years and are dependent on using certain asset allocation funds asset allocation fund
An investment company that varies the proportion of its portfolio devoted to stocks, bonds, and money market securities in order to reduce the variability of returns and to take better advantage of different segments of the securities . The annual charge is .50%.
The Equitable Life Equitable Life may refer to:
(processor) accumulator - In a central processing unit, a register in which intermediate results are stored. Series '04 variable annuities. These include a roll-up rate of 5% on death and minimum-income benefits, new asset-allocation portfolios, a death benefit for the first spouse to die, and a choice of two guaranteed-principal benefits.
Life/Health Marketplace is compiled by Senior Associate Editor Ron Panko.