AIG SunAmerica Offers Flexible, Extended VA Roll-Up
June 22, 2008
AIG SunAmerica has introduced MarketLock Income Plus, a variable annuity guaranteed withdrawal rider that can provide “lifetime income that’s guaranteed to increase for up to 15 years – even in years when withdrawals are taken or the market declines.”
After the contract is purchased, the MarketLock Income Plus feature automatically increases the contract’s guaranteed income base by 7% per year, minus any withdrawals. For instance, if the contract owner investor withdraws 5% during the rollup period, which lasts up to 15 years, the income base goes up by 2% even if the market return is zero or less.
During the contract’s distribution period, however, the contract owner can’t withdraw more than 4% or 5% (depending on age of first withdrawal) without reducing the value of the income base.
If no withdrawals are taken for 10 years after purchase, the income base will be equal to at least 200% of the initial purchase premium. Investments are limited to a choice of model allocations, balanced portfolios or a cash management portfolio.
“We have found that nearly 85% of investors over the age of 50 want strategies that can deliver rising income – when and how they need it – regardless of what happens in the markets,” said Jana Waring Greer, President of AIG SunAmerica Retirement Markets, Inc.
AIG’s recent “America Speaks Out 2008 Retirement Income Survey” showed that 82% of Americans aged 50 and older expect their living costs, especially healthcare costs, to go up each year in retirement, but that only 43% have a plan to protect themselves from rising costs. The survey of 2,203 U.S. adults age 50 and older was conducted by Harris Interactive in May 2008.
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