A large insurer has added an income planning option.

Massachusetts Mutual Life Insurance Company has introduced the MassMutual Lifetime Payment Plus guaranteed minimum withdrawal benefit.

The GMWB option can guarantee access to minimum withdrawals for life, according to MassMutual, Springfield, Mass.

“If no withdrawals are taken in any year during the first 10 contract years, the benefit base automatically grows by 6% simple interest for that year as part of the following year’s allowable withdrawal limit,” MassMutual says.

“If no withdrawals are taken for at least 10 years or before age 70, whichever is later, the benefit base will be reset to a minimum value that equals 200% of first-year purchase payments and 100% of any additional purchase payments,” MassMutual says.

The current charge is 0.6% for a single life, and the maximum charge for a single life is 1.5%.

For joint lives, the current charge is 0.85%, and the maximum is 1.5%, MassMutual says.

The guarantee option is available only with some MassMutual proprietary deferred variable annuity contracts, and purchasers must invest all of their money through an asset allocation fund or else comply with “defined asset allocation parameters” when allocating their own assets, MassMutual says.

MassMutual is responsible for backing the product guarantees.

In related news, MassMutual says it is introducing a new MML Asset Allocation fund series that includes a choice of 5 investment funds.