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Phoenix launches two fixed indexed annuity products


Phoenix, a provider of financial solutions using life insurance and annuities, has introduced Phoenix Index Select and Phoenix Index Select Bonus.

Both products are modified guaranteed, single-premium fixed indexed annuities featuring a simple structure, a ten-year surrender charge schedule, three optional guaranteed minimum withdrawal benefit riders and guaranteed principal protection.

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 five per cent premium bonus.

The Phoenix Index Select product series is designed to meet heightened interest in today’s market for growth potential without exposure to downside market risk, as well as demand for guaranteed income.

“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 maximize income potential without significant downside risk, and our new indexed annuity products respond to that need exceptionally well,” says Tom Buckingham (pictured), senior vice president, product development, life and annuity.

“A well-funded annuity can be one of the most reliable income sources in retirement. Our goal in designing the Phoenix Index Select product series was to offer a structure that is simpler and more straight-forward than other indexed annuities in the market. That way, consumers can better understand the benefits and features and feel comfortable that they have made an informed choice.”

As a single-premium annuity, the premium is paid in its entirety when the annuity is issued, with a minimum of USD15,000 and a maximum of USD1m.

With Phoenix Index Select Bonus, a premium bonus equal to five per cent 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. 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.

If the consumer makes an excess withdrawal or surrenders the contract during the surrender charge period, the withdrawal or surrender will be subject to a market value adjustment and for Phoenix Index Select Bonus, a portion of the bonus will be recaptured.

The Phoenix Index Select product series offers five point-to-point indexed accounts: one-year S&P 500, one-year Dow Jones Industrial Average, one-year Dow Jones Euro Stoxx 50, one-year Balanced Allocation, and five-year S&P 500.

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