Phoenix First to Market Offering Lifetime GMWB With Spousal Continuation; Completes Full Suite of Living Benefit Riders for VAs.
"Phoenix was the first U.S. company to offer second-to-die life insurance products. Today, we're pleased to offer yet another innovation that extends an annuity living benefit to a surviving spouse, ensuring income protection in retirement," said Philip K. Polkinghorn, executive vice president, Life & Annuity.
With the launch of its new Lifetime GMWB riders, Phoenix is one of a select group to offer a full suite of living benefits, including traditional GMWB, GMIB (Guaranteed Minimum Income Benefit) and GMAB (Guaranteed Minimum Accumulation Benefit) riders.
"Clients in retirement are looking for income and flexibility for a lifetime. Our innovative "Lifetime GMWB" and "Lifetime GMWB for 2" riders address both those needs. And, Phoenix takes the income guarantee further than any other carrier by continuing the benefit for the life of a surviving spouse. These tools support the advisor in helping their clients live the retirement they've envisioned," said Polkinghorn.
"Lifetime GMWB" and "Lifetime GMWB for 2" give the client control to start and stop withdrawals on their deferred variable annuity at any time, while providing downside protection through a guaranteed lifetime income stream without annuitizing the contract value.
The annual guaranteed lifetime income is 5.25 percent of the initial premium, regardless of the investment performance of the annuity, with a minimum cumulative benefit of 105 percent of the initial premium, adjusted for excess withdrawals. With the spousal option, after the client's death, the same income stream continues for the lifetime of their surviving spouse.
For example, a husband and wife, both age 65, purchase a Phoenix deferred variable annuity with $100,000 initial premium. With election of the "Lifetime GMWB for 2" rider, the clients are guaranteed $5,250 of annual lifetime income, regardless of the investment performance of the annuity. The guaranteed lifetime income will continue for a minimum of 20 years, until $105,000 is returned to the clients, and will continue beyond that for as long as either the husband or wife are living. If either the husband or wife live to age 95, they are guaranteed $5,250 of annual income, for a total of $157,500, regardless of the investment performance of the annuity(a).
"Lifetime GMWB" and "Lifetime GMWB for 2" also offer optional annual "resets" to help lock in any investment gains, potentially increasing the amount of guaranteed lifetime income.
A Full Suite of Living Benefit Riders
Phoenix is one of a select group to offer a complete suite of living benefit riders, empowering clients to choose a guarantee feature that meets their current investment objectives. In addition to the new lifetime versions of GMWB, Phoenix also offers two traditional GMWB riders, as well as GMIB and GMAB riders.
GMWB Living Benefit Riders
Phoenix's two traditional GMWB riders offer clients in retirement an annual guaranteed income stream, regardless of the investment performance of their annuity:
--GMWB 5 - this rider provides the client an annual guaranteed income stream of 5.25 percent of the initial premium, regardless of the investment performance of their annuity, with a minimum cumulative benefit of 105 percent of the initial premium, adjusted for excess withdrawals.
--GMWB 7 - this rider provides the client an annual guaranteed income stream of 7.35 percent of the initial premium, regardless of the investment performance of their annuity, with a minimum cumulative benefit of 105 percent of the initial premium, adjusted for excess withdrawals.
GMIB Living Benefit Rider
Phoenix's GMIB rider provides clients nearing retirement a guaranteed lifetime income, with less emphasis on investment flexibility. This rider provides the client a guaranteed lifetime income stream through annuitization, regardless of the investment performance of their annuity. With GMIB, clients are assured a Guaranteed Annuitization Value (GAV) that accumulates at the rate of 5 percent annually up to age 80, adjusted for withdrawals, regardless of market performance. After the contract has been in effect for seven years or at age 60, GMIB allows the client to take income from the GAV at guaranteed annuity rates, or the actual contract account value, whichever is higher.
GMAB Living Benefit Rider
Phoenix's GMAB rider may be particularly suitable for clients still accumulating for retirement, who value guaranteed investment return and flexibility. This rider provides the client a guaranteed minimum return on their variable annuity contract regardless of investment performance. After the contract has been in effect for 10 years, the rider helps protect the client from market downturns, guaranteeing they will have at least 105 percent of their first-year premium, adjusted for withdrawals. And, even if the markets perform well, Phoenix will still credit the contract with 5 percent of the first-year premium, adjusted for withdrawals.
"Phoenix's full suite of living benefit riders gives clients the power to say when and how they want to use the accumulated value in their variable annuity. These choices help advisors customize annuities to meet individual needs," said Polkinghorn.
Phoenix's full suite of living benefit riders are available on most Phoenix deferred variable annuities. To help clients maximize returns from their subaccount portfolios, Phoenix offers more than 40 investment choices and Ibbotson asset allocation models, which can help keep investments properly diversified.
Advisors who would like to learn more about Phoenix's "Lifetime GMWB" and "Lifetime GMWB for 2" riders should contact their Phoenix wholesaler, or the Annuities Sales Desk at 1-800-417-4769, Option 1, or visit: PhoenixWealthManagement.com.
The Phoenix Companies, Inc. is a leading provider of life insurance, annuity and asset management products for the accumulation, preservation and transfer of wealth. Through a variety of advisors and financial services firms, the company provides products and services to affluent and high-net-worth individuals and to institutions. With a history dating to 1851, The Phoenix Companies, Inc. has two principal operating subsidiaries, Phoenix Life Insurance Company and Phoenix Investment Partners, Ltd. The company also offers private placement insurance products through Philadelphia Financial Group, a wholly owned subsidiary. Phoenix has corporate offices in Hartford, Connecticut. For more information on Phoenix, visit: www.PhoenixWealthManagement.com.
(a) This hypothetical illustration is intended to show how the GMWB rider works and is not intended to predict or project investment results.
IRS Circular 230 Disclosure: Pursuant to requirements related to practice before the Internal Revenue Service, any tax advice contained in this communication (including any attachments) is not intended to be used, and cannot be used, for purposes of (i) avoiding penalties imposed under the United States Internal Revenue Code or (ii) promoting, marketing or recommending to another person any transaction tax-related matter addressed herein.
GMWB riders provide protection from market downturns. If the investor's current contract value is greater than their guaranteed benefit once withdrawals begin, they will pay for a guarantee that is not exercised.
Investors should carefully consider the investment objectives, risks, charges and expenses of a Phoenix variable annuity before investing. For a product prospectus and the investment option prospectuses containing this and other information, call your financial representative or call Phoenix at 1-800-417-4769. Please read the prospectuses carefully before investing.
Variable annuities are long-term investment vehicles intended to help investors accumulate tax-deferred earnings over time and provide guaranteed retirement income. Contract value will be influenced by mortality, administrative and investment advisory fees, as well as charges for contract surrender, riders and other elected options.
Variable annuities involve investment risk, including possible loss of principal. Phoenix variable annuities offer investors more than 40 diverse subaccounts in which to invest. As with any investment, subaccounts are subject to market risk and value fluctuations. Performance is not guaranteed and investors may receive more or less than the original investment amount.
Guarantees are based upon the claims-paying ability of the issuing company. Withdrawals are subject to ordinary income tax, and if taken before age 59 1/2 , a 10% federal income tax penalty may apply. Early withdrawals are also subject to surrender charges, and reduce the death benefit and cash surrender value.
Details regarding living benefit riders or death benefits may vary in a particular state based on the terms of that state's approval. Please read the prospectus for complete information.
Variable annuities issued by Phoenix Life Insurance Company (East Greenbush, NY) and PHL Variable Insurance Company (PHLVIC) (Hartford, CT). PHLVIC is not authorized to conduct business in NY and ME. The insurers referenced above are separate entities and each is responsible only for its own financial condition and contractual obligations. Variable products distributed by Phoenix Equity Planning Corporation, One American Row, Hartford, CT 06102. Members of The Phoenix Companies, Inc.
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|Date:||Nov 14, 2005|
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