A new variable annuity option will offer purchasers a 10% annual increase on their purchase payments.

Allianz Life Insurance Company of North America, Golden Valley, Minn., a unit of Allianz S.E., Munich, is making the 10% annual increase available with its Lifetime Plus 10 Benefit.

The company also is introducing a cumulative withdrawal benefit feature.

The new options are approved for sale in more than 40 states, Allianz says.

In addition to offering a 10% annual increase, the Lifetime Plus 10 Benefit option provides an automatic quarterly reset of the 10% annual increase, Allianz says.

When the customer is ready to take income, the Lifetime Plus 10 Benefit works the same way as the current Lifetime Plus Benefit, Allianz says.

The option guarantees the consumer’s income for life, and the consumer has an opportunity for additional income increases, the company says.

The benefit is available for an additional charge of up to 0.95%, and the charge will fall once Lifetime Plus payments begin, Allianz says.

The mortality and expense risk charges for the variable annuity range from 1.40% to 1.75%, depending on the contract selected, Allianz says.

Allianz Life is responsible for backing the product guarantees.

The other new option, the cumulative withdrawal benefit, available in all of the optional Lifetime Plus Benefits, gives purchasers the ability to design income payment schedules, Allianz says.