NU Online News Service, Oct. 14, 2003, 12:02 p.m. EDT – The Vanguard Group, Valley Forge, Pa., is selling a new immediate annuity.
Vanguard’s Lifetime Income Program will offer a fixed payment option, a variable payment option and a combination payment option.
Customers who choose the variable payment option accept more investment risk in exchange for a chance to get bigger payments. Customers who want variable payments can put the lump sum premiums backing the payments into the Vanguard Inflation Protect Securities Fund, the Vanguard GNMA Fund or other Vanguard funds. Vanguard then ties annuity payments to the performance of the funds.
AIG Life Insurance Company, New York, and in New York state, American International Life Assurance Company of New York, are issuing the product and backing its guarantees. Both companies are units of American International Group Inc., New York.