NU Online News Service, June 27, 1:20 p.m.– Peoples Benefit Life Insurance Company, Valley Forge, Pa., will be giving purchasers of the Vanguard Variable Annuity the ability to pick from a menu of three different “unbundled” death benefit options.
Peoples Benefit, a unit of AEGON N.V., The Hague, Netherlands, says the options will include an accumulated-value death benefit option, a return-of-premium option, and an annual step-up option.
The accumulated-value option would give annuitants purchasing it the right to leave beneficiaries the accumulated value of the annuity at the time of the annuitant’s death. The mortality and expense risk charge would be 0.20% of the contract assets.
The return-of-premium option would let the annuitant leave beneficiaries the sum of all contributions, less any partial withdrawals, if the sum of all contributions was greater than the annuity’s accumulated value. The charge for this option would be 0.25% of contract assets.