AIG Annuity Insurance Co. of Houston is unveiling a lifetime income benefit option for new contract holders of its retail and bank proprietary fixed annuity products.
The product, which was to be announced today, is the industry's first lifetime income benefit option available on a traditional fixed annuity contract, said Steve Poston, AIG Annuity's chief operating officer.
Contract holders who elect the new lifetime withdrawals are guaranteed not to outlive their income and can receive annual withdrawals of 5% without annuitization.
Until now, lifetime income benefit options have been available only on individual variable annuities and fixed indexed annuities, Mr. Poston said.
AIG Annuity, a unit of American International Group Inc. of New York, provides financial institutions, including banks, with customized proprietary annuities.
The firm was working with 83,500 bank representatives at 747 financial institutions as of Sept. 30 and accounted for 23% of all fixed annuity premium sold through banks in the first nine months of this year.
The parent company serves commercial, institutional and individual customers globally with property-casualty and life insurance.
