An insurer has come out with an annuity designed for purchasers who want to begin taking withdrawals immediately.

John Hancock Annuities, Boston, a unit of Manulife Financial Corp., Toronto, has introduced the Principal Returns optional guaranteed withdrawal benefit rider.

One feature of the rider provides an 8% withdrawal rate for clients who want to take money out soon after buying an annuity, and another protects principal in a down market and return of rider fees in an up market.

If no withdrawals are taken during the first 10 years, the client’s contract value will increase to equal the “greater of the first-year payments or current contract value plus any Principal Returns rider fees paid to that date,” Hancock says.