Sun Life Financial announced Monday it had released two new living benefits designed to address the withdrawal of income from retirement savings. According to the company, the new Sun Income Maximizer and Sun Income Maximizer Plus living benefits are designed to help investors protect and maximize their retirement income in any financial market environment. Sun Income Maximizer Plus offers many of the same features as Sun Income Maximizer, plus the benefit of protecting the purchasing power of retirement income from rising costs. Both living benefits are available with the Masters variable annuities for an additional cost.
“The Maximizer Plus is the only living benefit that guarantees an increase to the benefit base and income when the client begins to receive lifetime income,” says Sun Life spokesman Tim Stone. “When the withdrawal of retirement income begins, both the investor’s benefit base and lifetime income automatically increase each year at a compounded rate of 2.50%. This provides the client with a dependable, increasing cash flow every year for life—even if markets decline.”
Sun Income Maximizer protects retirement income in the event of down markets, and provides lifetime income growth through one of the following two guarantees:
- An 8% simple interest bonus, available during the first 10 contract years for each year prior to taking withdrawals, is added to the benefit base (the amount used to calculate lifetime income); or
- An increase of the benefit base equal to at least 200% of the first year’s purchase payments if the client waits until age 70 (or 10 years from issue, if this date is later) to take lifetime income payments.
The guarantee that results in a higher benefit base is used to determine the yearly amount of lifetime income.
Using these guarantees allows investors to maximize the growth of their income when they reach their retirement date.
In addition to providing many of these same benefits, Sun Income Maximizer Plushelps investors to keep pace with rising costs. When the withdrawal of retirement income begins, both the investor’s benefit base and lifetime income automatically increase each year at a compounded rate of 2.50%. This provides the client with a dependable, increasing cash flow every year for life—even if markets decline.
“These benefits will allow the financial advisors to provide powerful retirement income solutions to a wider group of clients—those that are more risk averse and are focused on preserving their wealth,” said Terry Mullen, president of Sun Life Financial Distributors in a statement. “We think this is a win-win for both advisors and their clients.”
In a related item, the U.S. division of Sun Life Financial Inc. ranked first in the DALBAR Financial Intermediary Pre-Sale Service category for 2010.
DALBAR, a firm that provides research and ratings on customer satisfaction and service in the financial services industry, annually honors financial companies that consistently exceed industry standards in pre-sale servicing for brokers and broker-dealers.
Winners of the award are determined by findings of the Financial Intermediary Service Quality Evaluations: Pre-Sale program, which evaluates and rates a company's pre-sales support to financial professionals. For participating companies, DALBAR examines core sales and service areas, such as the competence of telephone representatives, delivered to financial advisors across the United States over a 12-month period.