Nassau Re, a three-year-old holding company that owns the Phoenix Companies, Saybrus Partners and Golden Gate Capital, announced its first branded annuity product this week, a single-premium multi-year guarantee annuity (MYGA).
The product is called Nassau MYAnnuity. It will be sold through independent marketing organizations (IMOs). It will offer a guaranteed interest rate “up to 3.5%,” said Tom Buckingham, chief product and service officer for Nassau Re’s insurance segment, in a release.
The annuity is available with either a 5-year or 7-year duration, and customers can make a single premium payment ranging from $15,000 to $1 million. Currently, the guaranteed interest rates are 3.40% for 5X and 3.50% for 7X. If contract owners can choose to keep the right to take a 10% “free withdrawal” of up to 10% of their premium, their guaranteed interest rate will be 0.25% less.
Under the terms of the contract, required minimum distributions (RMDs) do not incur surrender charges or market value adjustment. At the end of the guarantee period, customers can select to surrender any amount of the contract or renew the contract for either the same or different duration, depending on what is available at the time.
All contracts have a death benefit equal to the contract value. Customers can annuitize the contract any time after the first year and choose from seven fixed annuity payment options. Early withdrawal penalties may be waived for certain conditions, such as nursing home confinement and terminal illness, subject to state approval.
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