Since the last installment of our quarterly Annuity Product Update, three new products have been released or updated by Annuity Monitor firms including two fixed annuities and an optional benefit rider. Here is a look at what the Annuity Monitor firms were up to in the second quarter of 2012:
Nationwide – INCOME Promise Select Fixed Annuity
The firm introduced an INCOME Promise Select fixed immediate annuity, an enhanced version of the pre-existing INCOME Promise annuity, to its suite of fixed annuities. The product enhancements include lump sum refunds for beneficiaries of clients who do not outlive their principal investments, customized guaranteed income and two new cost of living adjustments options.
Pacific Life – Pacific Expedition Fixed Annuity
The firm introduced a new product – Pacific Expedition – to its suite of fixed annuity products. The new annuity product features a guaranteed interest rate for a five or seven year period and immediate credit enhancement of up to 2% of the purchase payment.
Pacific Life – RateAdvantage Optional Benefit Rider
The new rider is available for purchase with the aforementioned Pacific Expedition fixed annuity. The rider offers policyholders the ability to make a one-time adjustment to increase their guaranteed interest rate on the contract anniversary during the initial guaranteed period. If the client does not exercise the feature by the last year prior to the end of the initial guaranteed period, they will receive the higher rate automatically.
The ongoing market volatility has allowed fixed annuity products to gain a stronger footing. Through the first six months of 2012, five new fixed annuities have been released by the Annuity Monitor firms as opposed to only one new variable product. Additionally, only one new benefit rider has been released thus far this year.