NEW YORK, N.Y., June 2, 2008 – New York Life Insurance and Annuity Corporation1 today announced the Lifetime Income Annuity’s Annual Increase Option2 now allows policy owners to elect to have the income benefit on their income annuity increase in one percent increments between 1% and 5% per year. The Annual Increase Option had previously offered only 3% or 5% annual adjustments.
“We’ve recognized that many consumers are interested in protecting their annuity income from inflation. At the same time we understand that each consumer’s need is unique. So we enhanced the Annual Increase Option to allow more customization of our Lifetime Income Annuity to help address the inflation protection needs of our customers,” said Michael Gallo, senior vice president, Retirement Income, New York Life. “By structuring income benefit payments this way, policyholders may help neutralize the impact of inflation over time. Today’s retirees and pre-retirees are looking for a way to ensure income in retirement while at the same time allowing for this income to be adjusted for inflation. This feature offers them a solution.”
With the Annual Increase Option, a policyholder’s initial income will start lower but the payments will increase each year by 1% to 5% depending on the percentage chosen.
“New York Life remains a leader in providing innovative products to meet consumer needs. This feature and other options available with the Lifetime Income Annuity product overcome concerns consumers have traditionally had toward income annuities. By doing so, our product is resonating with consumers. In fact, according to an industry source3, New York Life is the largest seller of lifetime income annuities in the United States,” added Mr. Gallo.
The enhanced Annual Increase Option joins a wide selection of other Lifetime Income Annuity innovations offered by New York Life. The Income Enhancement Option gives policyholders the ability to secure guaranteed lifetime income and potentially benefit from higher interest rates in the future. Policyholders selecting the Income Enhancement Option4 know that while their guaranteed payments can increase when interest rates rise, their payments will never decrease, no matter how low interest rates decline. Additionally, Cash Withdrawal Options offer the ability to accelerate some payments to meet short-term needs, and a one-time withdrawal feature that enables policyholders to access a portion of their future payments if needed, including an ability to withdraw up to 100% of the discounted value of remaining guaranteed payments on some policies.5 Also available to policyholders is the Changing Needs Option6 which adds longevity protection to the cash flow management role that retirees seek from immediate annuities. It allows policyholders to increase or decrease future annuity payments to suit personal needs and preferences.
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. New York Life has the highest possible financial strength ratings from all four of the major credit rating agencies. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments 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.
Please visit New York Life’s Web site at www.newyorklife.com and GuaranteesMatter, a site dedicated to retirement issues, challenges, and solutions, at www.newyorklife.com/guaranteesmatter for more information.
1 New York Life Insurance and Annuity Corporation is a wholly owned subsidiary of New York Life Insurance Company.
2 The Annual Increase Option is available on qualified and non-qualified policies. The policy owner must elect the Annual Increase Option at the time of purchase and be at least age 59½ at the time of the first payment. The Annual Increase Option is not available with either the Changing Needs Option or the Income Enhancement Option.
3 New York Life was the number one seller of fixed immediate annuities in 2007, according to an industry source. Source: LIMRA International, U.S. Individual Annuity Sales Survey, Fixed Immediates, Fourth Quarter YTD 2007 results. (Fixed Immediates include Fixed Period Annuities.)
4 The Income Enhancement Option must be elected at the time you purchase your policy. It is available only on non-qualified policies in approved jurisdictions. The owner of the policy must be 59½ at the time of the first payment, and the annuitant must be age 75 or younger at the time the policy is issued. If electing a joint policy, there may be no reduction of benefits. If you elect the Income Enhancement Option, neither the Changing Needs Option nor the Inflation Protection Option is available.
5 Available only if the owner is age 59½ or older. Amounts received may be fully taxable. Some features are not available in all jurisdictions. Other restrictions apply.
6This option is currently not available in all jurisdictions.
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