A new series of three fixed indexed annuities includes two “look back” accounts, which provide annual credits on a weighted basis.
Issued by PHL Variable Insurance Company, a unit of The Phoenix Companies Inc., Hartford (NYSE:PNX), the policies include the Phoenix Reflections Bonus 10, Phoenix Reflections 10, and Phoenix Reflections 7 contracts.
Each is a single-premium FIA with three optional guaranteed minimum withdrawal benefit riders, guaranteed principal protection, and a 10- or 7-year surrender charge schedule (depending on product).
Policyholders can choose from five accounts–three indexed accounts that base earnings on a point-to-point crediting method; one indexed account that bases earnings on a performance trigger crediting method; and one fixed account that credits interest daily at a specified rate guaranteed for 1 year.
Two of the point-to-point indexed accounts are the look-back options. The “domestic look back” includes the S&P 500, NASDAQ 100 and iShares Barclays Aggregate Bond Fund indexes. The “global look back” includes the S&P 500, Euro Stoxx 50 and iShares MSCI Hong Kong Index Fund indexes. Both accounts offer exposure to a variety of indexes without the consumer having to pick an index manually, according to the company.
How the look back options work: Each account provides annual credits to the customer based on the weighted average 1-year return of three measuring indices linked to domestic and global markets, up to a specified cap, the company says. The best performing index over the period is weighted at 50%, the second at 30%, and the third at 20%.
Guarantees are based on the claims paying ability of the issuing insurance company, the insurer says.