Popularity Driven by Market Dynamics, Attractive Features and Unique Applications
NEW YORK, N.Y., February 9, 2005 — New York Life Insurance Company today announced that sales of its Lifetime Income Annuity increased a dramatic 154 percent in 2004 compared to a modest industry-wide increase of only about three percent for lifetime income annuities over the same period. Sales rose to $292 million in 2004, up from $115 million in 2003.
"At a time when Americans are living longer, the availability of traditional pension plans is in decline. Together with ongoing questions surrounding Social Security, the use of vehicles like the Lifetime Income Annuity has become a priority when planning for a secure retirement," said John Meyer, senior vice president, New York Life. "By providing retirees a guaranteed retirement paycheck for life, the Lifetime Income Annuity gives consumers a sense of security and peace of mind in knowing that they can rely on a steady stream of income throughout their retirement years."
"Today's retirees find comfort in an income vehicle whose payments won't vary with fluctuations in the financial markets, and the long-term nature of lifetime income products also compels consumers to choose a provider that will be there for the long haul," added Corey Multer, vice president, New York Life. "The financial strength of New York Life gives policyholders confidence that their steady stream of payments will be there for life."
New York Life Insurance Company has received among the highest ratings for financial strength from four of the major independent ratings agencies, Moody's Aaa; A.M. Best, A++; Standard & Poor's, AA+, and Fitch, AAA. (Source: Third Party Rating Reports as of 10/05/2004)
The tremendous growth of New York Life's lifetime income product has also been driven by the features it offers, especially the unique, patent-pending elements that set it apart from the competition in a crowded marketplace. Some of these features include:
- The ability to accelerate some payments to meet short-term liquidity needs;1
- A one-time withdrawal feature enabling clients to access a portion of their remaining lifetime payments when they need a larger source of cash;2
- An optional automatic increase in the payment amount to help guard against inflation;3
- A payment alternative that ensures policyholders they won't lose money by guaranteeing they'll receive back no less than they paid in; and
- A unique guaranteed legacy option that pays a percentage of premiums death benefit no matter how long the client has been receiving income payments.4
"We've designed a product to overcome any hesitation to purchase and the results in 2004 show just how popular those design features really are. Policyholders are seeing a unique and versatile product that offers benefits far beyond the traditional immediate annuity," added Multer.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States and one of the largest life insurers in the world. Headquartered in New York City, New York Life's family of companies offers life insurance, annuities and long-term care insurance. New York Life Investment Management LLC provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as institutional and retail mutual funds.
Note to editors: To arrange an interview with a New York Life executive to discuss the Lifetime Income Annuity, please contact either Terri Marchon or John Hartz.
1These features are only available on non-qualified policies and after the annuity owner is over age 59½. Amounts received may be fully taxable. The one-time withdrawal feature is not available in New Jersey, Oregon and Washington.
2These features are only available on non-qualified policies and after the annuity owner is over age 59½. Amounts received may be fully taxable. The one-time withdrawal feature is not available in New Jersey, Oregon and Washington.
3This feature is available only if the annuity owner is over age 59½ at issue.
4This income alternative is not available for tax qualified policies and is not available in New York and Washington.
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|New York Life's Lifetime Income Annuity Sales More Than Doubled in 2004|