American International Group, Inc. (NYSE:AIG) 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 Plus SM 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 Income SM, 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 Plus SM 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.