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Life Health > Life Insurance

New Annuity Emphasizes Persistency Incentives

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Protective Life Insurance Company has introduced the ProtectiveRewards B2A Variable Annuity contract.[@@]

The contract encourages customers to keep their annuities by paying an annual reward equal to 0.4% of the total annuity value on the eighth contract anniversary and on every following contract anniversary.

For customers who start with at least $250,000 in annuity assets, Protective Life will starting making the “Persistency Reward” payments on the first contract anniversary, according to Protective Life, Birmingham, Ala.

Another feature, a PayStream Plus Benefit, will provide a 2% bonus for annuity holders who start collecting income payments on or after the 10th contract anniversary.

The contract also offers a built-in principal protection feature. The feature guarantees that annuity holders will get their principal back if annuity income payments start on the seventh contract anniversary.

Protective Life, a unit of Protective Life Corp., Birmingham, is responsible for backing the product guarantees.

The annual mortality and expense risk charge for the ProtectiveRewards B2A contract is 0.95%, Protective Life says.


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