A life insurer is increasing the maximum potential growth rate on the asset base for a variable annuity guarantee program to 7%, from 6%.
AIG SunAmerica, Los Angeles, a unit of American International Group Inc., New York, is making a 7% “annual retirement income” bonus option available with its MarketLock For Life Plus guaranteed minimum withdrawal benefit.
The GMWB option has been increasing the guaranteed asset base 6% per year.
If purchasers choose the new 7% bonus option and wait to start taking withdrawals, the base used to compute withdrawals will increase at least 7% per year for the first 10 contract years.
If investment returns on contract assets are strong, the increases in the benefit base could be higher, AIG SunAmerica says.
Customers also can choose to stick with the old 6% increase option.