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An arm of American Equity Investment Life Insurance Company has added an indexed annuity aimed at clients who want to protect their income against longevity risk.

Eagle Life Insurance Company has filed the new Eagle Select Income Focus contract as a non-variable product.

(Related: Can We Tolerate Millions of Elderly People Living in Cars?)

The product is part of an existing family of Eagle Select indexed annuities.

Eagle Life says it will provide lifetime income through a Lifetime Income Benefit Rider with a Wellbeing Benefit option. The option can increase income payments for up to five years if the annuitants become unable to perform two out of six activities of daily living (ADLs).

Annuitants need not be confined to a nursing home to qualify for the ADL-based income boost, Eagle Life says.

The contract also comes with a flexible premium payment option. Purchasers can use the arrangement without extending the surrender period, Eagle Life says.

The contract has a seven-year surrender charge schedule.

Annuity holders can take 10% penalty-free withdrawals from the contract value starting in year two.

— Read New Annuity Starts Lifetime Income Stream at Age 91 or Lateron ThinkAdvisor.

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