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.