Filed Under:Annuities, Fixed Indexed

The Principal Financial Group announces DIA

ALSO: Industry news from Phoenix Cos. and American General

The Principal Financial Group announced the launch of the Principal Deferred Income Annuity today. Deferred income annuities (DIAs) have been gaining popularity in recent years as waves of baby boomers begin to retire. Increasingly, retirees and pre-retirees are looking for guaranteed lifetime income to protect against longevity risk.

The Principal Deferred Income Annuity gives customers a flexible premium option while guaranteeing a certain amount of income. Customers can start receiving payments anywhere from 13 months to 30 years after the purchase. The deferral period will have a direct impact on the rate of return, potentially giving the client a higher return that other fixed interest rate products available.

DIAs are designed to help retirees transition into the next stage of their lives. For years, individuals depend on a regular paycheck and the goal of a DIA is to duplicate that concept through the process of annuitization

 

The Phoenix Companies announced the launch of their Phoenix Income Elite Annuity today. The fixed indexed annuity, which will be available through independent producers working with Phoenix subsidiary, Saybrus Partners, is designed for those already in or nearing retirement.

The single premium fixed annuity includes a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. The fee that accompanies the rider does not impact the guaranteed income amount. The annual amount is determined by issue age, length until the rider is utilized and the single premium.

The index credit on the annuity is never less than zero percent and clients can choose from three point-to-point indexed accounts as well as a fixed account.

 

American General Life Insurance Company announced the launch of their AG Choice Index 10 Annuity. The product offers upside growth with the protection of a traditional fixed annuity.

Designed to help grow retirement income while being insulated from market volatility, clients may realize a 4 percent premium enhancement on every premium paid during the first 30 days of the contract, a feature that may be elusive in the current low interest rate environment.

Interest can also be obtained by the movement of the S&P 500.

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