In an effort to attract investors who are looking for low risk, long-term retirement income solutions, American International Group, Inc. (AIG) recently announced the launch of Assured Edge Income Builder. According to a recent article from InsuranceNewsNet, the new fixed annuity product is issued by American General Life Insurance Company (AGL) and offers clients guaranteed lifetime income.
“Assured Edge Income Builder allows investors to maintain access to their retirement assets and have guaranteed income for life, stability in their asset value, plus a rising income opportunity – a highly valued combination for retirees,” said Bryan Pinsky, senior vice president, individual retirement products at AIG. “By allowing investors to predict retirement income and protect their principal from market risk, we are able to provide a product that offers both security and flexibility.”
Assured Edge Income Builder offers the following features:
- Lifetime Income: At contract issue, investors who are 65 years old are guaranteed income up to 5.6% of the contract value. Higher percentages (up to 6.35%) are currently available for older issue ages, and lower withdrawal rates apply to younger issue ages. Income rates are determined based on the age at contract issue. The contract also offers 7.5% income credit growth each year withdrawals are not taken (until lifetime income withdrawals begin).
- Income Flexibility: Investors can choose to start lifetime income immediately or at a later date. Investors can also start receiving lifetime income as early as age 50. Additionally, certain contract provisions are available that allow investors to access money through “penalty-free withdrawals.”
- Security: Investors can protect their principal from any market risk with guaranteed interest rates.
Michael Treske, EVO and Chief Distribution Officer, Annuities and Mutual Funds at AIG said that the company worked closely with distribution partners to ensure the new product delivered what investors are currently looking for. “Time and time again, we were told investors want security, flexibility, access to money and guarantees. Assured Edge Income Builder delivers on all of these requests – for life.”
Written by Rachel Summit