SunAmerica, the Los Angeles-based insurer whose corporate tagline is “The Retirement Specialist,” has added the following two new lifetime income benefits to its variable annuities:
SunAmerica Income Plus 6% Income Option 2. It offers up to 7% annual withdrawals as early as age 65 for investors who want income immediately. The original SunAmerica Income Plus 6% (Income Option 1) will continue to offer 6% withdrawals as early as age 45.
SunAmerica Income Builder 8% Income Option 2. This option provides 8% guaranteed income base growth for up to 12 years, or up to 6.5% annual withdrawals as early as age 65.
The two new guaranteed minimum withdrawal benefits (GMWBs), were added to SunAmerica’s Polaris Variable Annuities. to help address investors’ increasing demand for income flexibility and income guarantees.
Income Plus 6% locks in the greater of investment gains or an annual income credit of up to 6% on contract anniversaries during the first 12 years. Income Builder 8% locks in the greater of investment gains or an income credit of 8% in each year withdrawals are not taken during the first 12 years. After the first 12 years, investors can continue to lock in investment gains annually for lifetime income with either feature.
To ensure guaranteed lifetime income continues even if a contract’s value is completely depleted due to market volatility and/or withdrawals taken within the feature’s parameters, both features include a Protected Income Payment. The Protected Income Payment provides clients with 4% or 3% of their income base annually for life, depending on the feature and income option elected, as well as the age at the time of the first withdrawal.
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