New Living Benefit for Sun Life Masters Annuities Meets Variety of Income Needs |
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Written by U.S. Insurance News
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Monday, 12 May 2008 |
Whether customers need the income now or later, the new Retirement Income EscalatorSM from Sun Life Financial Inc.’s U.S. Division can meet that need.
The Retirement Income Escalator is a guaranteed minimum withdrawal benefit providing two options for clients to receive guaranteed lifetime income.
For retired customers who need income now, depending on their age, the benefit enables them to lock in a higher withdrawal percentage. Customers who don’t need the income until later will receive an annual bonus of 7 percent to the Withdrawal Benefit Base for the first 10 contract years if no withdrawals are taken in that period.
“Retirement Income Escalator allows customers to create an income plan that fits wherever they are in their lives—planning for or already enjoying their retirement,” said Michele Van Leer, senior vice president and general manager, Retail Insurance and Annuities. “This feature gives them a way to structure retirement income that is reliable and secure and helps make the most of their money.”
With the 7 Percent Annual Bonus, any time the Withdrawal Benefit Base steps up during a bonus period, a new 10-year bonus period begins automatically, extending the opportunity to receive a bonus for an additional 10 years.
Additionally, clients may be able to benefit from annual step-ups to lock in portfolio gains. On each contract anniversary, Sun Life Financial will check to see if customers are eligible for a Withdrawal Benefit Base increase. If the customer is eligible and the contract value is higher than the Withdrawal Benefit Base due to market gains, the positive difference is added to the Withdrawal Benefit Base, automatically increasing the annual withdrawal amount (beginning at 59 ½).
The Lifetime Withdrawal Percentage is set for life at the time of the first withdrawal. The older a customer is at the time of his first withdrawal, the higher the withdrawal percentage becomes. Those between the ages of 59½ and 69 receive an annual withdrawal amount equal to 5 percent of their Withdrawal Benefit Base, and the amount increases to 6 percent for those aged 70-79 and 7 percent for those 80 and older.
Retirement Income Escalator is available with the Sun Life Financial MastersSM suite of variable annuities for an additional charge: 0.75 percent of the Withdrawal Benefit Base for a lifetime guarantee for one individual, and 0.95 percent for joint life coverage.
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