An insurer is expanding access to annuity lifetime withdrawal benefit options.

AIG Annuity Insurance Company, Houston, a unit of American International Group Inc., New York, has introduced the IncomEdge Select feature, a lifetime withdrawal benefit option for new contract holders of its retail and bank proprietary fixed annuity products.

Up till now, lifetime withdrawal benefit options have been available mainly on individual variable annuities and fixed indexed annuities, according to AIG Annuity.

The option can guarantee access to lifetime annual withdrawals of 5% for contract holders who decide not to annuitize, AIG Annuity says.

Holders can start taking withdrawals at any time after age 65.

The cost of the option is 0.25% of the benefit base for as long as the fixed annuity contract remains in force.