Brighthouse Financial, a US provider of annuities and life insurance, has launched two new fixed annuity products: the Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA through Brighthouse Life Insurance Company.
The updates reflect the company’s commitment to providing a tailored set of annuity and life insurance products that respond directly to the needs of financial advisors, and the clients they serve, across market environments.
Brighthouse Financial chief distribution and marketing officer Myles Lambert said: “As interest rates rise, we see growing demand for fixed annuities.
“We are responding with two new fixed annuities that can provide greater value as people plan and save for retirement.”
Both the Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA are single premium deferred fixed annuities that offer consumers a guaranteed rate of interest for the Initial Guarantee Period. Consumers can select an Initial Guarantee Period of 3 years, 5 years or 7 years at the time of purchase. In addition, any purchase payment of $100,000 or more will receive an enhanced rate.
The Brighthouse Fixed Rate Annuity MVA includes a limited Market Value Adjustment (MVA), which generally allows for higher interest rates during the Initial Guarantee Period than the Brighthouse Fixed Rate Annuity. However, large withdrawals (those subject to withdrawal charges) may be positively or negatively impacted as a result of the MVA.
The Brighthouse Fixed Rate Annuity is not subject to an MVA and offers an optional return of premium guarantee through the Principal Guarantee Rider. This guarantees consumers their purchase payment back if they surrender their policy early.
The new fixed annuities are the latest additions to the company’s annuity portfolio following the launch of a new FlexChoice Access VA rider in the first quarter of 2018.
In its financial results for the second quarter of 2018, Brighthouse Financial reported that annuity sales increased 42 percent over the second quarter of 2017, primarily driven by an increase in sales of the Brighthouse Shield Level and fixed indexed annuities.
Lambert said: “We are excited to launch these new products and believe they will allow us to be more competitive in an increasingly important market. Expanding our fixed annuity lineup broadens and strengthens our overall product portfolio and allows us to better serve our distribution partners and their clients.”
The Brighthouse Fixed Rate Annuity and Brighthouse Fixed Rate Annuity MVA are now available for purchase through the company’s network of independent distribution partners.
Source: Company Press Release