Massachusetts Mutual Life Insurance Company has started selling a new guaranteed minimum accumulation benefit with the MassMutual Evolution variable annuity contract.[@@]
MassMutual is offering 10-year and 20-year versions of the rider.
Customers who buy the new GMAB rider at contract issue can protect purchase payments made during the first 2 contract years. At the end of the 10th contract year, the account value will be the current contract value if that is higher than the GMAB or the GMAB if the GMAB is higher than the current contract value.
Starting at the second contract anniversary, rider purchasers can use a reset provision to choose a new 10-year GMAB value. That feature lets purchasers lock in any growth accumulated as of the reset date for another 20 years, MassMutual says.
The 20-year version of the GMAB guarantees that purchasers will get at least twice the value of any purchase payments made during the first 2 contract years after 20 years. The 20-year GMAB feature does not offer a reset feature, MassMutual says.
MassMutual life insurance units are responsible for backing the guarantees.
MassMutual will charge an annual fee for the GMAB features equal to 0.40% of the daily value of assets invested in each fund.
To use the GMAB feature, investors must put their money in a directed-allocation model investment program. GMAB users cannot put any contract value in the product’s fixed accounts, MassMutual says.