To meet demands for guaranteed income
The Phoenix Companies has introduced Phoenix Index Select and Phoenix Index Select Bonus. The products are modified guaranteed, single-premium fixed indexed annuities featuring a simple structure, a 10-year surrender charge schedule, three optional guaranteed minimum withdrawal benefit riders and guaranteed principal protection.
Reportedly, each guaranteed minimum withdrawal benefit rider offers a feature that allows the product to be tailored to each consumer’s particular income requirement. In addition, Phoenix Index Select Bonus provides an upfront 5% premium bonus.
The Phoenix Index Select product series is designed to meet growth potential without exposure to downside market risk, as well as demand for guaranteed income.
With Phoenix Index Select Bonus, a premium bonus equal to 5% of the single premium is applied upfront to the account value. The bonus is distributed to each account in the same proportion as the single premium dollars and earns interest and/or index credits in the same way as the premium. The products offering a bonus may offer lower credited interest and/or indexed account rates than products not offering a bonus. Over time, and under certain circumstances, the amount of the bonus may be more than offset by the lower rates.
Tom Buckingham, senior vice president, Product Development, Life and Annuity, said: “Right now, there is increased demand from both distributors and consumers for products that take advantage of the market’s earning potential without exposing core retirement funds to the risk of loss. At the same time, many people are concerned that a fixed rate of return alone may not keep pace with inflation. The challenge is finding a product that will maximise income potential without significant downside risk, and our new indexed annuity products respond to that need exceptionally well.”