Protective Life Creates New Benefits for Variable Annuities |
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Written by U.S. Insurance News
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Monday, 10 March 2008 |
Protective Life Insurance Company has created updates to its SecurePay Withdrawal BenefitSM.
Clients who purchase any ProtectiveAccess(r) XL or ProtectiveRewards B2A® variable annuity now have a choice of two lifetime withdrawal benefits-the original SecurePay Withdrawal Benefit, or the new SecurePay with Roll-Up option.
Each benefit offers optional features such as RightTimeSM (an option to buy the rider at issue or at a later date), SecurePay MESM (an option that may result in higher annual withdrawal amounts for policyholders who have qualifying medical conditions), and a new Guaranteed Minimum Accumulation Benefit (GMAB).
The new SecurePay with Roll-Up option protects clients against a less-than-stellar market performance. In addition to offering many of the benefits found in the SecurePay Withdrawal Benefit (such as lifetime annual withdrawal benefits of up to 6 percent), this new option offers clients the potential to double the annuity's initial Benefit Base after 10 years. The compounding roll-up increases the Benefit Base by 7.2 percent each contract anniversary (adjusted for withdrawals) during a 10-year roll-up period. This gives clients a guaranteed minimum increase in the Benefit Base no matter how the market performs.
The GMAB offers policyholders an additional safety net-a return of purchase payments guarantee. This ensures that 10 years after the purchase of the benefit, the annuity value will be no less than the total of the purchase payments made during the first year of the contract (adjusted for withdrawals), even in the event of negative investment performance.
The GMAB, which is available only to policyholders who purchase either SecurePay or SecurePay with Roll-Up, also offers a step-up option five years after the benefit is purchased. This enables clients to lock-in the fifth year contract anniversary value and reset the 10-year guarantee period.
Eric Miller, vice president and national marketing director for Protective's Life and Annuity Division, said the company is offering these new options for its annuity products with consumers' individual needs in mind.
"We recognize that variable annuity buyers have a wide variety of individual needs and long-term objectives," Miller said. "We strive to deliver the innovative products, features, and flexibility needed for truly personalized solutions. These enhancements to our living benefit options demonstrate our commitment to delivering new choices with both security and flexibility in mind."
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