A hand making a payment (Image: Thinkstock)

Group One Thousand One LLC — the parent of Delaware Life has come up with a new annuity product idea: an annuity that’s kind of fun.

Group1001 has developed an immediate annuity that will pay the annuity holders cash back, just as a credit card or debit card might.

(Related: Delaware Life Adds Variable Annuity With Optional Benefits Guarantee Rider)

The company has made that possible by combining the immediate annuity with a prepaid debit card account.

An immediate annuity, or income annuity, is a product that pays a stream of cash to the annuity holder immediately. A consumer can use an immediate annuity to fund a wide variety of known income needs, such as the need for retirement income, payments for long-term care services, or payments for upkeep of real estate.

Group1001 says its product will pay purchasers cash back on everyday expenses, in part to compensate for the low yields now available from traditional savings products.

A consumer can buy the annuity online, and there are no contract fees or surrender penalties, Group1001 says.

The product is already available in Florida, Illinois, Indiana, Massachusetts, New Jersey and Texas. Group1001 says it’s preparing to offer the product in California soon.

— Read Canadian Insurer to Sell Its U.S. Fixed Indexed Annuity Line to Guggenheim Affiliateson ThinkAdvisor.

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