The Variable Annuity Life Insurance Company has unveiled a guaranteed minimum withdrawal benefit for new and existing owners of its Portfolio Director fixed and variable annuity contracts.
The new IncomeLOCK option can lock in an annuity contract’s investment gains annually and automatically for at least 10 years, according to VALIC, Houston, a unit of American International Group Inc., New York.
Investors who choose the option can allocate assets to any investment options within their annuities.
Investors must follow asset withdrawal rules, but they can decide when to begin taking income, how much to withdraw each year, and how long they want the yearly income to last, VALIC says.
Investors who wait until age 65 to take their first withdrawal and limit withdrawals to 5% of the maximum annual withdrawal amount can receive guaranteed lifetime income, VALIC says.
VALIC is responsible for backing the option guarantees.