Aviva USA launched a new fixed indexed annuity series today that brings simplicity and flexibility to the annuity marketplace.
The Target Benefit Annuities feature several innovative options to help consumers demystify retirement planning. The product offers a personalized approach to help someone preparing for retirement target their retirement goals, growth potential and income needs.
“ Target Benefit is designed to restore a level of certainty to retirement planning,” said Lance Sparks, senior vice president for annuity IMO sales and distribution for Aviva USA. “With Target Benefit, consumers have more options to meet their needs and help them adapt to current market conditions. Customers are looking for wealth accumulation, guaranteed lifetime income and a product that is easy to understand. This flexible annuity can meet all those needs.”
Sparks said Target Benefit does that with features that include:
- Simplicity: The amount of the guaranteed lifetime income is based solely on the amount of premium, the customer’s age and how long they wait to start lifetime income benefits. Unlike other annuities on the market, there are no separate income account value or withdrawal percentages to calculate.
- A statement of benefits: The first of its kind in the annuity industry, the statement of benefits provides a straightforward explanation of the monthly dollar amount the customer will receive when he or she starts drawing guaranteed lifetime income, regardless of market fluctuations;
- Options: Two optional income riders increase flexibility for customers to decide the age at which they turn on the income stream. Customers can select either a fixed lifetime income benefit, or a slightly lower guarantee with the chance to participate in more market index upside potential;
- Extra peace of mind: The riders also offer a feature that triples the income payments in case the customer is admitted to a qualified care facility;
- Choice: Contracts are available with either 10- or 15-year withdrawal charge periods, both offering multiple interest-crediting strategies from which customers can choose.