Lincoln Financial Group has worked with Capital Group’s American Funds team to develop the American Legacy Target Date Income variable annuity contract.
(Related: Great-American Adds Indexed Annuities)
Lincoln says the new contract is the first contract that provides access to a target date fund series along with access to an insured stream of lifetime income.
Lincoln has been using other types of American Funds investment options in its American Legacy variable annuity contracts since 1987.
Lincoln is offering a fee-based version of the new contract as well as a commission-based version.
The income feature will provide income equal to 5.7% of the contract value for life, and future income will grow at least 6% per year, according to Lincoln.
The Radnor, Pennsylvania-based companies will write the annuities through The Lincoln National Life Insurance Company in most of the country. Any contracts sold in New York state will be written through Lincoln Life & Annuity Company of New York.
Lincoln notes that the guarantees are subject to the claims-paying ability of the issuing insurer.
In other annuity product news, AIG Life & Retirement has started using the AB All Market Index, a multi-asset credit rating index from AllianceBernstein.
AIG Life & Retirement, which is a unit of American International Group Inc., will be using the index in the AIG Power Select Index Annuities.
The AIG unit has exclusive rights to the new index and will be distributing the annuities that include the index through Market Synergy Group.
Index managers will try to stabilize returns by shifting assets toward investment categories that are doing well and away from categories that are doing poorly.
Another change will be the addition of a confinement rider to the Power Select Plus Income Index Annuity contract. The rider can increase the maximum annual withdrawal amount for contract holders who end up needing care in a nursing home or similar facility for 90 or more days.
The annuities will be written through AIG’s American General Life Insurance Company unit.
American General Life is responsible for the annuity contracts’ underwriting risks and financial and contractual obligations.
— Read Annuity Update: Security Benefit, Great American, Annuities Genius, Transamerica, on ThinkAdvisor.