American International Group, Inc. has announced the latest enhancements to their index annuity products, issued by American General Life Insurance Company, designed to offer individuals a powerful combination of guaranteed rising income, principal protection and growth potential.
The enhanced Lifetime Income PlusSM guaranteed living benefit rider in AIG’s suite of index annuities will now guarantee rising income for the first 10 contract years, as long as withdrawals do not exceed the annual limit. This rider is automatically included in Power Index Plus IncomeSM, a new index annuity focused on retirement income and designed especially for the financial institution and broker/dealer distribution channels. Lifetime Income Plus is also available as an optional rider with the AG Choice Index 10® and Power Index PlusSM annuities offered through brokerage general agencies.
"Given concerns about market volatility, rising retirement costs and longer life expectancies, many individuals are looking for a retirement savings vehicle that can help them grow and protect their assets, while also ensuring their retirement income will rise and last for life," said Rob Scheinerman, Executive Vice President, Individual and Group Retirement, AIG Life and Retirement. "With the enhanced Lifetime Income Plus rider, individuals can have the confidence of knowing their retirement income can grow for up to 10 contract years, even in a down market and after withdrawals begin."
Lifetime Income Plus guarantees the growth of the Income Base — the amount on which lifetime withdrawals are based — by locking in the greater of potential interest earnings or an annual income credit of up to 7%. Retirement income is certain to rise with a partial income credit, as long as withdrawals are taken within the terms of the rider. Please note that interest is added to the Income Base, only if it produces a contract value that is higher than all previous anniversary values.
"Some living benefit riders don’t step up when withdrawals are taken," said John Deremo, Executive Vice President and Chief Distribution Officer, Life and A&H, AIG Financial Distributors. "With ours, individuals have the flexibility to take withdrawals when needs arise and still ensure both rising income and guaranteed income for life."
AIG is also pleased to introduce two additional enhancements to its family of index annuities: 1) the Monthly Average Index Interest Account, a new interest crediting strategy available in the AG Choice Index 10 and the Power Series of Index Annuities; and 2) a streamlined product lineup for the financial institution and broker/dealer markets consisting of Power Index Plus, an asset accumulation product, and Power Index Plus Income, a retirement income product.
The Monthly Average Index Interest Account provides new opportunities for individuals to increase the upside growth potential of their retirement assets. It can help contract owners earn interest during periods of market volatility, while ensuring that they don’t lose principal in a down market.
For financial institutions and broker dealers, AIG has enhanced its index annuity lineup to better address the asset accumulation and retirement income needs of Americans today. Individuals can now choose from Power Index Plus, which offers principal protection and growth potential, but no Lifetime Income Plus; or Power Index Plus Income, which automatically includes Lifetime Income Plus as part of the annuity contract.
"Our suite of index annuities allows individuals to tailor their asset accumulation and retirement income approach to suit their individual needs and situation," said Mike Treske, Executive Vice President and Chief Distribution Officer, Retirement Income Solutions and Retail Mutual Funds. "They provide individuals with an opportunity to not only protect their principal from market loss, but also to help supplement other sources of guaranteed retirement income like Social Security and pensions."