A strong demand for guaranteed income and favorable regulations are causing the life insurance industry to create new annuity products. The latest is from Genworth Financial and offers a lifetime income rider. Life Health Pro’s Nick Thornton introduced the annuity in “Genworth offers lifetime income annuity.” Genworth’s new product is called the SecureLiving Growth with Income Choice annuity. They plan to market this annuity to an expanded market of consumers that are as young as age 45. SecureLiving Growth protects your money from market losses and offers guaranteed lifetime income. There is also the potential for your account to grow at a higher level than that of current interest rates.
The IncomeChoice rider offers different options during retirement. Contract holders can change their payout levels after they have started receiving income. If you decide to increase or decrease your payout level, there is an annual charge of 1.1%. This annuity has another benefit that helps consumers pay for a medical care facility if they have to go to one full time while receiving annuity income. You have the ability to double your monthly income for up to five years if you need the money to pay for such a facility.
Genworth is not the first insurance company to recently introduce a new annuity with guarantees. MetLife and Fidelity just announced that they are joining forces to create a new variable annuity that will guarantee all of your principal after ten years. Annuity sales were $59.9 billion during the second quarter of this year, an increase of 6.8% from the first quarter and of almost 10% from the second quarter of last year. Total annuity sales were at a three year high in the middle of this year. These recent annuity sales results are from before the Treasury and Labor Department rulings making annuities more accessible in 401k plans and target-date funds. The industry anticipates further increases in annuity sales because of these government rulings.