Symetra Life Insurance Company, a subsidiary of Symetra Financial has launched a new cash refund payout option on its income annuity products, to provide beneficiaries with a lump sum equal to the unrecovered purchase payment upon the death of the annuity owner.
According to Symetra, a customer’s annuity would be paid out with an amount at least equal to purchase payment, under the cash refund payout option. The new option may be elected at the time of issue with the company’s advantage income immediate annuity and freedom income annuity.
In addition, the new option joins other income annuity beneficiary payment options including installment refund, which pays beneficiaries in installments and guarantees total annuity payout will not be less than purchase payment.
The company said that income annuities generate a guaranteed income stream. When customers purchase income annuity with a lump-sum payment and choose a date when they want to begin receiving money from annuity then it makes payments according to any option customer chooses including monthly, quarterly, semi-annually or annually.
Rich Lindsay, senior vice president of Symetra’s life and annuities division, said: With life expectancies rising, income annuities are an increasingly popular way to ensure people’s retirement dollars last as long as they do. Our new Cash Refund payout option helps give customers even more flexibility in meeting their income needs and the needs of their beneficiaries.