The Phoenix Cos. Inc. of Hartford, Conn., today launched its suite of living-benefit riders, with two new additions.
The Phoenix Cos. Inc. of Hartford, Conn., today launched its suite of living-benefit riders, with two new additions.
The Phoenix Retirement Protector, a combination-benefit rider, features a guaranteed-minimum-accumulation benefit and an optional guaranteed-minimum death benefit.
This accumulation benefit protects principal against market volatility, while the death benefit gives heirs a greater death benefit in a down market than a policyholder would receive in the base variable annuity contract, according to the firm.
However, in order for the death benefit to kick in, the covered person must die before 85 and the contract value must not have been reduced to zero.
The Phoenix Flexible Withdrawal Protector, a new guaranteed-minimum-withdrawal rider, will replace the company’s current rider of that type.
New features include higher withdrawal amounts, ranging from 5% to 7%, that permit policyholders to receive greater income if they wait to withdraw.
Another incentive for waiting: The benefit base grows by automatic step-ups to lock in market gains or by annual roll-ups — whichever is greater — until the first withdrawal.
The longer the client waits to withdraw, the greater the potential for higher income.
In addition, an optional extended-care-enhancement feature doubles the amount of income available if the policyholder is in a nursing home for at least 180 days.