NU Online News Service, March 15, 2005, 2:37 p.m. EST
Prudential Financial Inc., Newark, N.J., has introduced 2 options aimed at variable annuity buyers who want to put some limits on their exposure to investment risk.[@@]
One product, the Lifetime 5 living benefit option, guarantees 5% annual compounded investment growth for up to 10 years and a 5% annual withdrawal stream for life.
Purchasers of the option also can choose a 7% withdrawal stream that will be guaranteed for at least 14.2 years, Prudential says.
The other product, the Highest Daily Value death benefit guarantee, automatically locks in the annuity’s high value for the period of time measured.
The income guarantee costs 0.6% of average daily net assets, and the death benefit guarantee costs 0.5% of average daily net assets, Prudential says.
Prudential’s American Skandia Life Assurance Corp. and Pruco Life Insurance Company units will write the new optional guarantees, and those units will be responsible for backing the guarantees.