The Phoenix Companies, a provider of life insurance and annuities, and investment management firm Lockwood Capital Management have introduced a financial product that for the first time wraps a lifetime income guarantee around an investor's managed account assets held in an LCM account.
The product, known as Guaranteed Retirement Income Solutions (GRIS), guarantees predictable lifetime income payments regardless of the actual performance or value of an investor’s LCM account. It is available only for managed accounts that are invested in Lockwood Capital Management’s (LCM’s) Lockwood Investment Strategies longevity income solutions (LIS) asset allocation models.
When customers invest in an LCM LIS asset allocation model and add the GRIS product, they are guaranteed, subject to certain restrictions and withdrawal limits, a lifetime income stream – even if the LIS account value is depleted. An investor will have initial access to the guaranteed income stream at age 65 or older.
The annual income stream available under the guarantee is generally equal to 5% of the initial LIS account value. As the assets grow, the investor can elect to lock in a higher annual benefit based on the increased account value. If the LIS account value is depleted by market conditions or withdrawals, subject to certain restrictions and withdrawal limits, Phoenix will continue income payments for life to the investor.
Dona Young, chairman, president and CEO of Phoenix, said: It’s clear we need new ways to help our aging population attain a comfortable and satisfying retirement, and these solutions need to be simple, low cost and flexible.