Printer Friendly

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.

[ILLUSTRATION OMITTED]
COPYRIGHT 2008 A.M. Best Company, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2008 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Title Annotation:SPOTLIGHT
Publication:Best's Review
Article Type:Brief article
Date:Apr 1, 2008
Words:144
Previous Article:Sponsorship.
Next Article:Hancock improves universal policies.
Topics:


Related Articles
Hancock Adds 11 Funds To Its Variable Life Lineup.
A Lifetime Contract.
Sales of index annuities continue to surge in 2003. (Marketplace).
Invading annuities' turf: the huge and powerful mutual-fund industry is increasingly moving into an annuity stronghold--the 403(b) market.
New life & annuity products emphasize better guarantees.
Calculating scenarios: new risk-based capital requirements are changing how variable annuity writers understand risks.
A breakthrough year: industry sales shot up an estimated 66% in 2004, and major writers reportedly are poised to enter the market.
Fencing in the risk: medically underwritten immediate annuities are not yet a well-known product, but they may become an important tool as retiring...

Terms of use | Privacy policy | Copyright © 2019 Farlex, Inc. | Feedback | For webmasters