Life units of Genworth Financial Inc. are introducing the RetireReady IRA Annuity product.
The annuity contract relies on brand-name, retail mutual funds and can be issued only to individual retirement accounts, Roth IRAs and simplified employee pension individual retirement accounts, according to Genworth, Richmond.
Genworth Life and Annuity Insurance company will issue the annuities in most states.
Genworth Life Insurance Company of New York, another Genworth subsidiary, will issue the annuities in New York.
Genworth says it hopes to sell the annuity through "all major financial advisor channels of distribution."
The product uses retail mutual funds in its subaccounts rather than the variable insurance trusts typically used in variable annuities, Genworth says.
One option is a lifetime withdrawal benefit rider.
The product also comes with 2 surrender options.
When consumers buy the contract, they can choose between a 7-year surrender charge schedule with a combined annual mortality and expense charge and administrative expense of 1.35%, or a 4-year surrender charge schedule at a cost of 1.65%, plus portfolio management fees.
Genworth Life and Genworth Life of New York are responsible for backing the product guarantees.
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