An insurer is aiming a new variable annuity product at the Fortune 1000 retirement plan rollover market.
AXA Equitable Life Insurance Company, New York, a unit of AXA S.A., Paris, says the Crossings: My Lifetime IRA can convert lumps sums rolled over from 401(k) plans or defined benefit plans into guaranteed income streams.
The variable annuity contract, the first product to come of AXA Equitable’s new corporate markets unit, offers purchasers a menu of five asset-allocation portfolios, ranging from conservative to aggressive, and a “guaranteed annual payment” of at least 5% of the initial rollover contribution, the company says.
Until a Crossings owner begins making withdrawals, the value of the income base will grow by at least 6% per year through a deferral bonus, AXA Equitable says.
If the investment portfolio does well and growth exceeds 6%, the Crossings owner will get an increase equal to the performance-based “step-up” amount, AXA Equitable says.
If the owner dies, any money remaining in the account will go to the owner’s beneficiaries, the company says.
AXA Equitable is responsible for backing the product guarantees.