Genworth Financial Inc. has included a market value adjustment provision in its new fixed single-premium deferred annuity.
Called SecureLiving Rate Saver, the SPDA is available up to age 85 and offers an interest rate guarantee period of either 5 or 7 years.
The MVA design enables Genworth to offer a higher interest rate on the SPDA than would be the case on an annuity without this provision, according to the company’s product announcement.
In general, MVA provisions adjust an annuity’s surrender charges up or down, depending on how the policy’s interest rate compares to current interest rates on new money.
The insurer is positioning the new SPIA as an alternative for conservative buy-and-hold clients and as a product that advisors can use for rate-based sales.
The policy is issued by Genworth Life and Annuity Insurance Company, Richmond, Va.