The Phoenix Companies, Inc., Hartford, Conn., has introduced Phoenix Index Select and Phoenix Index Select Bonus. Both products are modified guaranteed, single-premium fixed indexed annuities featuring a simple structure, a 10-year surrender charge schedule, three optional guaranteed minimum withdrawal benefit riders and guaranteed principal protection. Each guaranteed minimum withdrawal benefit rider offers a feature that allows the product to be tailored to each consumer’s particular income requirement. In addition, Phoenix Index Select Bonus provides an upfront 5% premium bonus.
The Phoenix Index Select product series is designed to meet heightened interest in today’s market for growth potential without exposure to downside market risk, as well as demand for guaranteed income.
As a single-premium annuity, the premium is paid in its entirety when the annuity is issued, with a minimum of $15,000 and a maximum of $1 million.
With Phoenix Index Select Bonus, a premium bonus equal to 5% of the single premium is applied upfront to the account value. The bonus is distributed to each account in the same proportion as the single premium dollars and earns interest and/or index credits in the same way as the premium. Products offering a bonus may offer lower credited interest and/or indexed account rates than products not offering a bonus. Over time, and under certain circumstances, the amount of the bonus may be more than offset by the lower rates.
If the consumer makes an excess withdrawal or surrenders the contract during the surrender charge period, the withdrawal or surrender will be subject to a market value adjustment and for Phoenix Index Select Bonus, a portion of the bonus will be recaptured.
Three optional guaranteed minimum withdrawal benefit riders are offered for consumers who want to buy additional income protection.
- “Income 25″ provides an upfront bonus to the benefit base equal to 25% of the accumulation value at issue.
- “Income Plus” provides a guaranteed minimum 8% compound increase to the benefit base for the first 10 years.
- “Income Max” provides high withdrawal percentages maximizing the guaranteed lifetime income amount available.
The Phoenix Index Select product series offers five point-to-point indexed accounts: One-year S&P 500, one-year DJIA (Dow Jones Industrial Average), one-year DJ (Dow Jones), EURO STOXX 50, one-year Balanced Allocation, and five-year S&P 500. The Balanced Allocation includes the three indices and appeals to consumers who want a more diversified investment strategy. In addition, consumers can also select a fixed account that credits interest daily at a specified rate.
For more information, visit www.phoenixwm.com.