A unit of American International Group Inc. is adding another option to the market for variable annuity lifetime income products.
AIG SunAmerica Retirement Markets Inc., Los Angeles, says its new MarketLock lifetime income option can provide maximum anniversary value guaranteed minimum withdrawal benefits for holders of the company’s Polaris and Seasons variable annuities.
The option can provide a lifetime income stream for investors age 75 or younger who pay an annual fee equal to 0.65% of the withdrawal benefit, follow withdrawal rules, and begin waiting until their 65th birthday or later to take withdrawals of up to 5% of their benefit, according to AIG SunAmerica, which is a unit of AIG, New York.
The maximum anniversary value applies only to payments made within the first two contract years.
The feature “steps up automatically and locks in investment gains annually for 10 years…with no changes in the fee percentage,” AIG SunAmerica says.
The customer can extend the feature to step up for 20 years on the 10th anniversary, AIG SunAmerica says.
Customers cannot include the feature with other living benefit options offered along with the same annuity contracts.
AIG SunAmerica Life Assurance Company issues the feature and is responsible for backing the guarantees in most states. First SunAmerica Life Insurance Company is responsible for backing the guarantees in New York.