What You Need to Know
- American General Life is an arm of AIG Life & Retirement.
- The new annuity is part of the X5 family of indexed annuities.
- Annexus has focused on distributing non-variable indexed annuities and indexed universal life products.
Annexus is offering annuity specialists a product that could have strong appeal for nervous clients: a contract that can protect the holders against loss of principal.
The Scottsdale, Arizona-based company has started marketing the new X5 Accelerator Annuity contract from American General Life Insurance Company — an arm of AIG Life & Retirement.
The new contract is part of AIG Life & Retirement’s X5 family of single-premium, non-variable indexed annuities. A sibling, the X5 Advantage Annuity contract, came out in May 2020.
The new contract has a feature that might appeal to clients who could use a quick psychological boost: the issuer immediately adds a bonus, equal to 35% of the premium, to the lifetime income benefit.
The contract also comes with a multiplier feature that can increase lifetime income by 250% of net interest earned each year during the accumulation phase.
Holders can get crediting rates tied to the performance of investment indexes developed by PIMCO and Morgan Stanley Investment Management.