In a Wall Street Journal press release, AIG announced some big improvements to their indexed annuities. “AIG Enhances Its Suite of Index Annuities to Offer Guaranteed Rising Income with Principal Protection” says that AIG made these changes to help their clients accumulate their assets and distribute their income. AIG’s indexed annuities are issued through American General Life Insurance Company. Their indexed annuity products have three goals for their clients: guaranteed income that rises, protection of their principal, and the potential for growth.
Lifetime Income Plus is an guaranteed living benefit rider available with AIG’s annuities. It has been enhanced so that your income is guaranteed to rise for the first ten years of your contract. You cannot take out more money in a year than your annual limit to maintain this enhanced benefit though. The AG Choice Index 10 and Power Index Plus indexed annuities give you the option to add on the Lifetime Income Plus rider. If you purchase AIG’s new Power Index Plus Income indexed annuity, this GLB rider is already included. This added benefit offers customers the ability to grow their retirement income for ten years, even when they are withdrawing money and markets are down. The guaranteed lifetime income and rising income even while making withdrawals are the benefits that make AIG’s Lifetime Income Plus different from other indexed annuity riders. There are more details on the Income Base growth in the Wall Street Journal article.
AIG made some other enhancements to their indexed annuities as well. There is a new interest crediting strategy for their AG Choice Index 10 and Power Series of indexed annuities. The Monthly Average Index Interest Account offers annuity owners the opportunity to earn interest when markets are volatile, but it protects your principal when markets are down. They are also offering financial institution and broker dealer markets a combination asset accumulation and retirement income product that combines the Power Index Plus and the Power Index Plus Income. Offering both options gives customers the choice of including the lifetime income option or using the indexed annuity just for the growth potential and principal protection.
Contact an expert at Annuity FYI if you have questions about indexed annuities and their benefits.
Written by Rachel Summit