What You Need to Know
- The Equitable product purchasers can protect against up to 10% or 15% of market losses during the asset building period.
- Pacific Life has added a MYGA contract with no withdrawal charges.
- American Equity has a new non-variable indexed annuity with a 10-year surrender charge period.
- DPL is setting up a MYGA supermarket for fee-based advisors.
Equitable has come out with a new type of registered index-linked annuity (RILA) contract: a product that acts like an ordinary RILA product while the holder is building up assets, and that can then act like a fixed income annuity when the holder needs retirement income.
The New York-based insurer has added the Structured Capital Strategies Income contract to its line of Structured Capital Strategies annuities.
Retirement savers can use the contract to protect themselves against losses of up to 10% or 15% when building up assets.
When they began taking out income, they can lock in a guaranteed level of income.
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Holders can also choose an income payment option that leads to the contract paying a higher level of benefits early on.
Both income options offer the holder a chance to increase income by 5% of contributions per year each year before they start receive income, as long as they have not yet taken any withdrawals.
The extra growth will be credited for up to 20 years or the contract maturity date, whichever is earlier, Equitable says.
The new product is registered with the Securities and Exchange Commission as a variable product, meaning that it can expose the holder to the risk of loss of account value.
Some state insurance regulators are calling RILA contracts index-linked variable annuities.
Pacific Life has introduced a multi-year guaranteed annuity, or MYGA contract, aimed at fee-only advisors.
The Newport Beach, California-based insurer’s new Pacific Harbor MYGA contract has no commissions or withdrawal charges.