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January 25, 2024 at 11:38 AM
Corebridge Financial has come up with a new kind of plain vanilla annuity.
The Houston-based company has introduced the American Pathway Advisory multi-year guaranteed annuity contract.
Like many other MYGA contracts, the product gives clients a way to keep crediting rates stable for terms of three, five or seven years. But the new contract has no initial sales charge and is aimed mainly at the clients of registered investment advisors.
Another twist involves what happens when the original term expires: Instead of automatically getting a one-year renewal term, the client can choose a three-year, five-year or seven-year renewal term, without filling out a new application or buying a new contract, according to Bryan Pinsky, president of individual retirement at Corebridge.
The new product “makes it simple and efficient for RIAs to maintain a consistent allocation to guaranteed rates within their client portfolios,” Pinsky said.
What it means: Many insurers have been backing away from the investment risk they face when they offer your clients life and annuity products with strong benefits guarantees.
But some insurers are still offering guarantees, and some are emphasizing their commitment to fixed-rate product products by adding new types of guarantees.
Corebridge: Corebridge is the company that AIG formed when it began the process of putting its life and annuity operations in a separate, giant company. It ended the third quarter of 2023 with $360 billion in assets under management and advisement.
