Delaware Life Insurance Company has introduced an individual deferred variable annuity contract that offers an optional guaranteed lifetime withdrawal benefit (GLWB) rider.
The Waltham, Massachusetts-based company says it will distribute the new Delaware Life Masters Prime Variable Annuity contract through the bank and broker-dealer channels.
(Related: Allianz Life Adds Variable Annuity)
A copy of the GLWB rider filed with Delaware insurance regulators shows an investment menu that includes options from a wide range of managers, including American Funds, BlackRock, Goldman Sachs, Invesco, JPMorgan, MFS, Morgan Stanley, PIMCO and Putnam.
A client can use a built-in death benefit feature or choose between two alternative death benefit riders.
John and Jane Doe’s Annuity
Delaware Life put a sample GLWB rider form, for John and Jane Doe, in its regulatory filings. The sample filing shows the fictional couple getting a bonus rate of 5.5%, paying a rider fee rate of 0.3% for the GLWB rider, and having a maximum withdrawal benefit base of $5 million.
The original rider fee rate of 0.3% is guaranteed for the life of the rider unless the Does elect a step-up, according to the filing. In the filing, Delaware Life states that the rider fee rate will never exceed 0.4875%.
The filing shows maximum lifetime withdrawal percentages ranging from 3.5% to 6.5% for a single life, and 2.5% to 5.5% for a joint-life arrangement.
Delaware Life, Group1001 and Guggenheim Partners
Daniel Towriss, the president of Delaware Life, was an insurance deal expert at Guggenheim Partners. In 2012, Towriss formed a group of private investors, apart from Guggenheim Partners, to acquire Sun Life Financial’s U.S. annuity business, and some of Sun Life’s U.S. life policies.