{"id":2162,"date":"2013-03-07T15:17:01","date_gmt":"2013-03-07T20:17:01","guid":{"rendered":"http:\/\/www.annuityfyi.com\/blog\/?p=2162"},"modified":"2023-02-14T22:50:23","modified_gmt":"2023-02-14T22:50:23","slug":"prudentials-newest-variable-annuity-offers-defined-income","status":"publish","type":"post","link":"https:\/\/www.annuityfyi.com\/blog\/2013\/03\/prudentials-newest-variable-annuity-offers-defined-income\/","title":{"rendered":"Prudential’s Newest Variable Annuity Offers Defined Income"},"content":{"rendered":"

\"\"A new variable annuity and a new benefit option have just been introduced by Prudential Annuities.  According to the Prudential Financial press release, “Prudential Annuities Launches Prudential Defined Income Variable Annuity and Highest Daily Lifetime Income v2.1,” these products have been designed to help current and future retirees meet ever-changing needs.  The Prudential Defined Income Variable Annuity adds to the company’s wide range of product offerings.  It has one big benefit that many people are looking for right now.  Whether you start taking the money immediately or defer payments, you will know exactly what your guaranteed lifetime income benefit will be.<\/p>\n

People can buy this new variable annuity as young as age 45.  All of your premiums are invested in the AST Long Duration Bond Portfolio, where your returns accumulate tax-deferred.  In addition to the benefit of knowing your lifetime income amount, Prudential’s Defined Income Variable Annuity has some other benefits<\/a>.  While you have the ability to take your money out, as long as you are not yet receiving income payments, your income withdrawal amount will be growing every day.  Not only do you know the amount of your guaranteed income, you also know the level of growth you’ll receive on the defined income.  You have control over your assets because you decide when to take payments and how much you will take without giving up access to the rest of your money.  The particular bond portfolio is used to generate higher investment yields.<\/p>\n

Prudential is excited that their new variable annuity offers guaranteed minimum income higher than most other variable annuities.  Sixty-five year olds get a 5% annual lifetime withdrawal rate, but also get to grow their annuity withdrawal amount each year by 5.5%, as long as they aren’t receiving payments yet.  This Defined Income product is good for investors who are equity and bond based.  This strategy driven by bonds gives income amounts up front, the potential for higher annual yields, and guaranteed income rates based on age.  Prudential is excited with the guaranteed income options offered with this new variable annuity.<\/p>\n

They have also replaced the v2.0 benefits with new Highest Daily Lifetime Income v2.1 and the Spousal Highest Daily Lifetime Income v2.1.  Investors are able to lock in the annuity’s highest daily value as long as they are not yet receiving payments.  Your Protected Withdrawal Value is based on the highest daily value along with a 5% annual growth for 10 years.  There are daily step-ups as well as daily growth of the benefit base.  The 19 different investment portfolios are innovative and made to increase step-ups.  This added rider also offers Proprietary Risk Management and even gives you the option of adding a Highest Daily Death Benefit for your heirs.<\/p>\n

If you have any questions about Prudential’s new Defined Income Variable Annuity<\/a> or Highest Daily Lifetime Income v2.1 rider, contact one of our Annuity FYI experts for the latest information.<\/p>\n

Written by Rachel Summit<\/a><\/p>\n

Follow Rachel, aka Finance Mama, on Twitter<\/a> and Google+<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A new variable annuity and a new benefit option have just been introduced by Prudential Annuities.  According to the Prudential Financial press release, “Prudential Annuities Launches Prudential Defined Income Variable Annuity and Highest Daily Lifetime Income v2.1,” these products have been designed to help current … <\/p>\n

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