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New York Life Brings Longevity Protection To Immediate Annuities

New Option Allows Clients to Customize Retirement Payments According to Personal Needs and Life Events

NEW YORK, N.Y., October 6, 2005 — New York Life Insurance and Annuity Corporation announced today a new feature available with its popular Lifetime Income Annuity, giving clients the flexibility to personalize their retirement income according to their unique lifestyle needs. The new feature, called the Changing Needs Option, adds a key element of longevity protection to the traditional cash flow management role that retirees seek from immediate annuities.1

"Americans are living longer in retirement than ever before, and many are beginning to consider the implications of living longer than they've planned for financially. We've now addressed this longevity risk by providing immediate annuity purchasers with the flexibility to increase their payments at a future date of their choosing. This can help clients deal with expectations of higher health-related expenses and other life events - and give them the confidence to live their lives to the fullest," said Ted Mathas, executive vice president of New York Life.

With the Changing Needs Option, clients can arrange for their monthly income payments to increase by up to five times the original amount, commencing at one future point in time. And for those who expect their retirement income needs to decrease at older ages, this new feature allows clients to have their payments decrease by up to one-half the original amount, at a future date of their choosing. This increase or decrease may occur anytime after the third anniversary of the policy.

    Clients can use the Changing Needs Option in a variety of ways:
  • It makes asset withdrawal planning easier. By electing a higher payment in the future, a client can have the confidence to spend his or her assets over a fixed number of years knowing that if those assets are depleted, he or she will have additional guaranteed income to cover expenses should they live beyond life expectancy.
  • It helps manage cash flow. A client may anticipate moving from semi-retirement to full retirement over a number of years. He or she can set up the annuity to provide lower payments in the early years and larger payments later on, when they are most needed.
  • It can help deal with a short-term expense. A retiree can elect to have higher payments early in retirement if he or she has a short-term expense, such as a mortgage that will be paid off in a few years. The retiree can plan ahead for this changing need by electing to have his or her payments reduced at the time they expect to finish the mortgage payments.

Mr. Mathas said, "By itself, an immediate annuity from a financially strong insurer gives retirees security and peace of mind by guaranteeing a steady stream of income for life, no matter what the future may hold. With the added flexibility of our Changing Needs Option, clients can more effectively utilize all of their retirement income resources, from personal savings to Social Security and pension plans - which we hope will lead to more confident and fulfilling retirements."

In addition to the new Changing Needs Option, New York Life's lifetime income product currently offers a wide array of innovative features, some of which are patent-pending. They include:

  • The ability to accelerate some payments to meet short-term liquidity needs;2
  • A one-time withdrawal feature enabling clients to access a portion of their remaining lifetime payments when they need a larger source of cash;3
  • An optional automatic increase in the payment amount to help guard against inflation;4
  • 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.5

New York Life said that the popularity of lifetime income annuities has never been greater. The introduction of the Changing Needs Option follows a 154 percent increase in New York Life's lifetime income annuity sales in 2004. Since lifetime income annuity payments are a commitment on the part of the insurer to make payments for the life of the client, New York Life advises that consumers purchase the products only from a financially strong insurer with a track record of fulfilling those commitments. Earlier this year New York Life celebrated 160 years of serving its policyholders.

New York Life Insurance and Annuity Corporation is a subsidiary of New York Life Insurance Company, a Fortune 100 company founded in 1845. New York Life Insurance Company 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.

1This option is currently not available in all jurisdictions.

2The payment acceleration feature is only available on non-qualified policies and after the annuity owner is over age 59½. Amounts received may be fully taxable.

3The cash withdrawal feature is only available on non-qualified policies and after the annuity owner is over age 59½. Amounts received may be fully taxable. This feature is not available in New Jersey, Oregon and Washington.

4This feature is available only if the annuity owner is over age 59½ at time of first payment. This feature is not available with the Changing Needs Option.

5This 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 Insurance and Annuity Company does not provide tax, legal or accounting advice. Please consult your own tax, legal or accounting professional before making any decisions.

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New York Life Brings Longevity Protection To Immediate Annuities

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