Aegon has enhanced its unit-linked guarantee product Aegon Secure Lifetime Income (ASLI).
Aegon said that the new ASLI customers who are not yet taking income will benefit from a guaranteed minimum addition of 3.25% of their original investment each year to their income base – the figure that income is calculated from, regardless of the underlying investment performance, effective 15 November 2010.
Additionally, the chances of a customer achieving an increase to their income base figure have been improved. Previously, the original investment was reviewed on the policy anniversary date. If the investment had grown on that date, the growth was locked-in to increase the income base figure.
According to the Aegon, the new enhancement, which takes the highest recorded investment value at the end of each of the previous 12 months, increases the likelihood of an increase to the income base. There is no cap to the investment growth that can be locked in.
As part of a diversified retirement strategy, ASLI aims to meet customer needs. It offers customers a guaranteed minimum lifetime income of between 3.6% and 4.75% of their original investment from age 60; with the added benefit of allowing them to easily access their remaining capital at any time should they require this.
If additional withdrawals are made this will reduce the fund value and the level of guaranteed income and there may be a tax charge.
Aegon Individual Marketing head Gordon Greig said the product feature enhancements to AEGON Secure Lifetime Income make it one of the most competitive unit-linked guarantee products in the market today.
“As we refocus our strategy on the ‘at-retirement’ market, unit-linked guarantees will continue to be a key part of our proposition,” Greig said.