AIG American General Unveils Three Products in New Global Index Annuity Series |
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Written by U.S. Insurance News
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Sunday, 16 March 2008 |
Any investor wishes he had 20/20 foresight regarding the markets. But since that's not possible, he'll have to be content with 20/20 hindsight.
That's one of the distinguishing features of the new AIG Global IndexSM Annuity Series from American General Life Insurance Company, a subsidiary of AIG. Michael Harrison, vice president of annuity sales and marketing for AIG American General, explains.
"A unique feature of the series is that it contains an account designed to provide the client with 20/20 hindsight. At the end of each contract year, the performance of three indices is weighted to determine the interest rate paid to the client. The weighting favors the market indices that fared the best," he said.
Harrison added that this feature makes the AIG Global Index Annuity Series the ideal choice for a client who is risk-averse but would like the opportunity for growth.
In addition, the Global Index Annuity Series features a guaranteed minimum withdrawal benefit that can increase with age and higher annuity value, which is automatically included with no up-front cost.
The series consists of three new index annuities. The first is AIG Global Bonus IndexSM Annuity, which clients purchase with a single lump-sum premium. In addition, buyers receive an automatic 5 percent premium bonus to their annuity value immediately upon purchase.
Additional features include the industry's strongest underlying guarantee of 100 percent of the premium earning 3 percent annually (less withdrawal charges); a 10-year withdrawal schedule with a first year withdrawal charge of 10 percent; a guaranteed minimum withdrawal benefit, allowing clients the potential to withdraw an increasing proportion of their annuity value as they age, while also providing an option to cash out if needed; and an extended-care provision, which provides access to the annuity's full value in qualifying medical situations.
The other two annuities in the series are the AIG Global 6 IndexSM Annuity and AIG Global 8 IndexSM Annuity, both of which are flexible premium products that allow clients to contribute more premium to their contract whenever they wish. They also offer shorter withdrawal charge schedules.
Not all features of the AIG Global Bonus Index are available with the shorter versions.
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