X5 Advantage Annuity offers powerful opportunity to increase income before and during retirement
AIG building on New York. (Credit: Wikipedia.org/Marc Bryan-Brown.)
AIG Life & Retirement, a division of American International Group, and a leading provider of annuities, announced a new relationship with Annexus, an innovator in delivering retirement solutions to the marketplace. The relationship is part of AIG’s continuing strategy to expand its distribution network and further diversify a broad lineup of retirement income solutions.
AIG Life & Retirement and Annexus will bring consumers X5 Advantage, an index annuity issued by AIG member company American General Life Insurance Company and provided through a network of Annexus-contracted independent distribution companies. X5 Advantage offers exclusive indices developed by premier asset managers PIMCO and Morgan Stanley Investment Management and designed to help provide upside growth potential.
X5 Advantage also offers an innovative income feature that can double any interest credited to the annuity to help provide more guaranteed income for life. Along with growth potential and lifetime income, X5 Advantage offers principal protection against market downturns so principal cannot be lost due to poor index performance.1
“We share with Annexus a commitment to innovation and customer value and are excited to begin this new relationship with a firm that has a proven history of delivering solutions to meet diverse retirement needs,” said Todd Solash, Chief Executive Officer of Individual Retirement at AIG. “Our ongoing strategy at AIG Life & Retirement is to leverage a broad product portfolio with a strong distribution network to satisfy the evolving needs of our customers. Together, AIG and Annexus are launching X5 Advantage to help Americans pursue their goal of achieving financial and retirement security.”
As consumers save for retirement, they may earn interest based on the performance of the indices, and their lifetime income base under X5 Advantage can grow by up to 200% of credited interest.2 Even after withdrawals begin, the lifetime income base may continue to increase by 150% of credited interest.
“With interest rates at all-time lows, index annuities have emerged as valuable solutions to help consumers grow assets, address longevity risk and guarantee income for life,” said Don Dady, Annexus Co-Founder. “X5 Advantage combines growth potential based on indices from two of the world’s top asset managers with an increasing lifetime income opportunity designed to help keep pace with rising costs in retirement.”
X5 Advantage also features a confinement benefit, available after 10 years, which can double a client’s annual income if he or she becomes confined to a nursing home or other qualified facility. In addition, the annuity features an enhanced death benefit.4
“The increasing income annuity market continues to grow, fueling demand for more competitive solutions,” said Ron Shurts, Annexus Co-Founder. “We strive to provide our distribution partners with the most innovative products on the market, and X5 Advantage represents the next generation of retirement income.”
“We recognize the importance of developing effective accumulation and income strategies to help our clients achieve a long, comfortable retirement,” said Bryan Pinsky, Senior Vice President of Individual Retirement Pricing and Product Development at AIG. “That’s why we chose PIMCO and Morgan Stanley Investment Management to develop the indices in X5 Advantage, and why we’re working with Annexus to help more Americans realize their vision of retirement.”
Guarantees are backed by the financial strength and claims-paying ability of American General Life Insurance Company (AGL). AGL does not issue products in the state of New York.
Source: Company Press Release