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Annuity writers adding options.

As interest grows in variable-annuity guaranteed lifetime withdrawal benefits, annuity writers have added to their GLWB offerings.

Massachusetts Mutual Life Insurance Co. in January launched Lifetime Payment Plus, a feature that pays 5% of the benefit base annually. The base automatically grows 6% simple interest annually up to 10 years if no withdrawals are taken.

Pacific Life Insurance Co. in February introduced Foundation10, which ensures that before withdrawals, the benefit base will at least double in 10 years. Withdrawals are at a 5% rate.

Prudential Annuities, Prudential Financial's domestic annuity business, in January increased its Highest Daily Lifetime Five GLWB to Seven. That means the withdrawal value before withdrawals is based on 7% annual compounded growth on the highest daily account value, up from 5%. When begun, the income stream is 5% to 8% of protected value, depending on the policyholder's age.

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Title Annotation:SPOTLIGHT
Publication:Best's Review
Article Type:Brief article
Date:Apr 1, 2008
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