A life insurer has come out with a new variable annuity product.

Old Mutual Financial Network, Atlanta, a unit of Old Mutual P.L.C., London, has started selling the Beacon Advisor VA contract.

The contract, designed for sale through financial advisors, comes with a monthly charge of $20 and a 0.05% expense charge for the first 5 years only, Old Mutual says.

Options available with the contract include a guaranteed minimum withdrawal benefit of 5% per year, with unlimited annual increases based on account value, and a guaranteed minimum death benefit.

The death benefit guarantee rider guarantees return of premium less withdrawals, Old Mutual says.

Another, enhanced guaranteed minimum death benefit can increase the minimum death benefit by 5% per year, compounded up to a 200% limit, Old Mutual says.

Old Mutual will be offering customers asset-allocation portfolios based on models designed by Standard and Poor’s’ Investment Advisory Services L.L.C., an affiliate of the rating agency.

The minimum contribution is $50,000, and a customer can make a maximum contribution of $1 million without getting prior approval.

The Old Mutual subsidiary issuing the annuities, OM Financial Life Insurance Company, is responsible for backing the product guarantees.