- 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.
Sparks said although interest rates are at near-record lows, customers want products that provide guaranteed income streams as well as accumulation. Sparks said that demand resulted in creation of the innovative Target Benefit product.“ Target Benefit Annuities offer clients the opportunity to plan for and then adapt to changes in their retirement income needs,” Sparks said. “We believe the unique features we’ve built into the product are going to transform the annuity marketplace by removing complexity and making annuities more attractive and mainstream. “By developing products like the Target Benefit Annuities, Aviva USA is demonstrating our commitment to the annuity marketplace. We also are committed to finding ways to meet the needs of customers who are looking for clarity, predictability and customizable solutions as they plan for retirement.” More information about Aviva’s Target Benefit Annuities can be found on avivausa.com. About Aviva USA Aviva USA is a sales leader of indexed life insurance and indexed annuities. Headquartered in West Des Moines, Iowa, Aviva USA also has offices in Topeka, Kan., and Melville, N.Y. Aviva USA has approximately 930,000 customers and employs 1,800 people across the country. Aviva USA is part of Aviva plc, the world’s sixth-largest insurance group, and can trace its presence in the U.S. back to 1896.