The Principal Financial Group announced the launch of the Principal Deferred Income Annuity today. Deferred income annuities (DIAs) have been gaining popularity in recent years as waves of baby boomers begin to retire. Increasingly, retirees and pre-retirees are looking for guaranteed lifetime income to protect against longevity risk.
The Principal Deferred Income Annuity gives customers a flexible premium option while guaranteeing a certain amount of income. Customers can start receiving payments anywhere from 13 months to 30 years after the purchase. The deferral period will have a direct impact on the rate of return, potentially giving the client a higher return that other fixed interest rate products available.
DIAs are designed to help retirees transition into the next stage of their lives. For years, individuals depend on a regular paycheck and the goal of a DIA is to duplicate that concept through the process of annuitization
The Phoenix Companies announced the launch of their Phoenix Income Elite Annuity today. The fixed indexed annuity, which will be available through independent producers working with Phoenix subsidiary, Saybrus Partners, is designed for those already in or nearing retirement.
The single premium fixed annuity includes a Guaranteed Lifetime Withdrawal Benefit (GLWB) rider. The fee that accompanies the rider does not impact the guaranteed income amount. The annual amount is determined by issue age, length until the rider is utilized and the single premium.