With upside potential and downside protection becoming the mantra for the new retirement reality, companies are creating indexed products that seniors will be drawn to. AIG American General is among the latest to introduce such an annuity. The VisionMaximizer is linked to the S&P 500, has four accounts to choose from, features free withdrawals in all years, has a premium bonus and a death benefit.
In addition, a premium bonus equal to 5 percent of the single premium is credited on the day the contract is issued. If the annuity owner dies, heirs are provided the full annuity value in their choice of a lump-sum payment or a stream of payments. Also, each year clients may participate in some or all of the account options: three that credit interest based in part on the increase and one fixed-interest account.