Fort Dearborn Life Insurance Company has launched its Classic Fortifier, a flexible premium deferred fixed annuity.

The Classic Fortifier accepts deposits during the first 12 months of the contract. All deposits during the first 12 months of the contract are subject to the same five-year surrender charge schedule. The product allows an annual partial surrender of up to 10% of the account value after the first year of the contract without incurring surrender charges. A first-year interest rate bonus is applied to all premiums received in the first 12 months.

A bail out feature ensures liquidity for the owner. If the renewal rate falls below the initial base credited rate, the owner may make a full or partial withdrawal of the account funds within 30 days after the contract anniversary-without incurring any surrender charges. The Classic Fortifier has a minimum initial premium of $4,000 and a 100% waiver on nursing home and terminal illness. The product is not yet approved in all states.

Ken DiFrancesca, vice president of retirement and individual products unit at Fort Dearborn Life, said: The Classic Fortifier fills two needs that are particularly important to consumers: liquidity and control. This product is an important addition to our portfolio of fixed and indexed annuities. It is ideal for conservative investors who would like to consolidate their assets into one tax-deferred vehicle and still exercise the right to withdraw their funds if the interest rate drops.