Reportedly, the new options capture the annuity's highest daily value and grow at an annual 7% compounded rate
US-based Prudential Annuities has expanded the availability and has increased the minimum income guarantees of its options available with its variable annuities.
The domestic annuity business of Prudential Financial has said that its Highest Daily optional living benefits, which can be purchased for an additional fee with a variable annuity from Prudential issuing companies, is now available to investors as young as age 45.
The company has said that the new options capture the annuity’s highest daily value and grow that value at an annual 7% compounded rate, until lifetime income begins. Highest Daily Lifetime 7 Plus and Spousal Highest Daily Lifetime 7 Plus will replace Highest Daily Lifetime Seven and Spousal Highest Daily Lifetime Seven in all states of the US where they have been approved.
Prudential Annuities added that provided no Lifetime Withdrawals have been taken, investors are guaranteed a minimum Protected Withdrawal Value of 200%, 400% and 600% of the account value at benefit election after 10, 20 and 25 years, respectively. Highest Daily Lifetime 7 Plus gives investors the opportunity to increase their Protected Withdrawal Value every day the market is open for trading with no cap on rollups or step ups.
Stephen Pelletier, president of Prudential Annuities, said: In today’s environment, guarantees are critical to investors and their focus on retirement income. The new Highest Daily Lifetime 7 Plus benefit allows Prudential to respond to the changing needs of American investors in today’s turbulent financial market. Our Highest Daily benefits are designed to provide guarantees, for income purposes, while ensuring that in the event of significant market declines, the protection we provide responsibly manages risk for the client as well as for the company.