One of the country’s largest annuity and life insurance providers, Brighthouse Financial, is adding two new fixed annuity products to their line-up, according to a recent article from InsuranceNewsNet. BrighthouseSM Fixed Rate Annuity and BrighthouseSM Fixed Rate Annuity MVA will both be sold through Brighthouse Life Insurance Company, and will “reflect the company’s commitment to providing tailored set of annuity and life insurance products that respond directly to the needs of financial advisors, and the clients they serve, across market environments,” the company said in a news release.
“As interest rates rise, we see growing demand for fixed annuities,” said Myles Lambert, chief distribution and marketing officer at Brighthouse Financial. “We are responding with two new fixed annuities that can provide greater value as people plan and save for retirement.”
Both annuities are single premium deferred fixed annuities that offer consumers a guaranteed rate of interest for the initial guarantee period. Consumers can choose between 3, 5 or 7 year initial guarantee periods at the time of purchase, and those paying $100,000 or more will receive an enhanced rate. The Brighthouse Fixed Rate Annuity MVA includes a limited Market Value Adjustment, which typically allows for higher interest rates during the initial guarantee period. It is important to note, however, that large withdrawals may be positively or negatively impacted as a result of the MVA.
On the other hand, the Brighthouse Fixed Rate Annuity is not subject to an MVA, offering an optional return of premium guarantee through the Principal Guarantee Rider. This guarantees consumers their purchase payment back if they surrender their policy early.
This latest addition to the company’s line-up follows the launch of a new FlexChoice Access VA rider in the first quarter of 2018. Brighthouse Financial reported an increase in annuity sales of 42% for the second quarter of 2018, in comparison to the same time period the previous year.
“We are excited to launch these new products and believe they will allow us to be more competitive in an increasingly important market. Expanding our fixed annuity lineup broadens and strengthens our overall product portfolio and allows us to better serve our distribution partners and their clients,” Lambert added.
Written by Rachel Summit