Protective Life Corp. has introduced an annuity that includes annual rewards for holders who keep their annuities after the eighth contract anniversary.[@@]
The ProtectiveRewards B2A variable annuity contract carries an annual mortality and expense risk charge of 0.95%.
The contract’s Persistency Reward feature will add an annual reward equal to 0.40% of the total annuity value starting on the eighth contract anniversary and every anniversary thereafter, Protective Life says.
For initial purchase payments of $250,000 or more, the Persistency Reward payments will begin on the first contract anniversary.
Other features include a 2% bonus for holders who annuitize after the 10th contract anniversary and a free principal guarantee feature for holders who begin collecting annuity income payments on the seventh contract anniversary.
Protective, Birmingham, Ala., is writing the annuity through its Protective Life Insurance Company unit. Protective Life is responsible for backing the product’s guarantees.