American General Life Insurance Company is introducing the Emerging Edge equity indexed annuity.
American General, Houston, a unit of American International Group Inc., New York, says the product is a single-premium, deferred index annuity
The annuity offers purchasers a choice of 4 interest crediting accounts, and holders can reallocate funds among the accounts each year without paying withdrawal charges or facing market value adjustments.
Annuity holders can start taking up to 10% of the annuity value each year starting in the second contract year without paying a withdrawal charge for facing a market value adjustment.
If a holder dies, American General will pay the full value of the annuity to the beneficiary in the form of a stream of payments, American General says.
Holders who choose some contract income plan options can annuitize the annuity and receive a lifetime income stream after the end of the fifth contract year.
American General is responsible for backing the product guarantees.