AIG Life & Retirement Launches New Lifetime Income Benefit for The Power Series of Index Annuities®
AIG’s Lifetime Income Choice℠ Offers Consumers the Opportunity to Receive More Income Earlier in Retirement
Lifetime Income Choice offers two options—Max Income and Level Income—to help consumers tailor their income strategy to their individual lifestyle. The Max Income option maximizes income during the early, more active years of retirement, when spending tends to be highest, while Level Income provides a consistent and steady income for life. For enhanced protection in changing markets, both options guarantee income growth every year prior to activating their lifetime income benefit.
“A key part of retirement planning is working with a financial professional to discuss what you want your future to look like and the income you’ll need to make that vision possible,” said
The Power Series of Index Annuities with Lifetime Income Choice are retirement solutions designed for accumulation and income. In addition to securing lifetime income, they offer the potential for tax-deferred growth, based partly on the performance of an index, while protecting principal against market downturns.
Notes for Editors
Lifetime Income Choice is designed to increase retirement income in any market. It locks in the greater of cumulative interest earned or an annual income credit of 5.50% every year that lifetime withdrawals are not taken, ensuring that future income will increase, even if index performance is flat or down.
When consumers are ready to take income, Max Income offers high initial withdrawal rates of up to 7.25% per year, depending on the owner’s age at the time of lifetime income activation and the number of individuals covered. If the annuity’s account balance becomes depleted, Max Income will provide protected income of up to 4.00% for life.
In contrast, the Level Income option offers a steady stream of lifetime income, even if the annuity’s account balance is depleted. Although maximum withdrawal rates are lower than Max Income at 5.85%, Level Income offers consumers the confidence and security of knowing that their income will not decline for life.
The Power Series of Index Annuities are issued by
Note: All withdrawal rates mentioned specifically in the press release are for the single life option, covering one individual only. The Max Income option may not provide more cumulative income than the Level Income option.
Index annuities are not a direct investment in the stock market. They are long-term insurance products with guarantees backed by the claims-paying ability of the issuing insurance company. They provide the potential for interest to be credited based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuations. Index annuities may not be appropriate for all individuals.
Withdrawals may be subject to company-imposed withdrawal charges. They may also be subject to federal and/or state income taxes. An additional 10% federal tax may apply if you make withdrawals or surrender your annuity before age 59½. Consult your tax advisor regarding your specific situation.
Lifetime Income Choice is a guaranteed living benefit rider automatically included at contract issue in the Power 7 Protector Plus Income and Power 10 Protector Plus Income Index Annuities for an annual fee of 1.10% of the Income Base. The Income Base is the amount on which lifetime withdrawals are based it is not a part of the contract value or death benefit and cannot be withdrawn partially or in a lump sum. The Income Base is initially equal to the first eligible premium and is increased each time an eligible premium is made. It is also adjusted for withdrawals (prior to activation) and excess withdrawals (after activation). On each contract anniversary, your Income Base is set to equal the greater of: (1) the anniversary value, if higher; or (2) the Income Base plus any available income credits. Eligible premiums are all premiums received in the first 30 days of the contract.
All contract and benefit guarantees, including the fixed account crediting rates, are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer from which this annuity is purchased.
The Power Series of Index Annuities are issued by
|May Lose Value •
|Not a Deposit • Not Insured by any
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