Posted on 18 Nov 2011
Retirees who need to invest for lifetime income but also want to preserve a financial legacy for loved ones or a favorite charity can now accomplish both through Hartford's Personal Retirement Manager (PRM) Variable Annuity product suite.
"Many people have found it difficult to accomplish the opposing financial objectives of generating a lifetime income and leaving a legacy through a variable annuity," said Steve Kluever, vice president of product and marketing for Global Annuities at The Hartford. "Hartford's PRM offers options to help resolve this conflict and allow consumers to achieve both living and giving goals, without detracting from either."
The Hartford's new Future6 Death Benefit, available as an optional rider on PRM, allows for income withdrawals that do not reduce the death benefit, unlike most variable annuity death benefits, Kluever explained. The value of the death benefit is based on the greater of premiums invested or the contract value at the time income payments start, providing the withdrawals do not exceed predetermined limits, he said.
The Future6 Death Benefit is available when the optional Future6 Guaranteed Minimum Withdrawal Benefit (GMWB) is also elected. Future6 provides guaranteed growth of a future lifetime income stream through the greater of a 6 percent annual deferral bonus or market appreciation step-up. The bonus lasts for up to 10 years while investors delay taking income payments. Performance step-ups are available until age 90, even while taking income.
Investors who elect the Future6 GMWB are required to allocate their investment in the Personal Protection Portfolios, which are asset allocation models that provide access to a dozen world-class investment managers and help reduce the volatility of an investment portfolio through various market environments.
As part of the enhancements, The Hartford is also reducing certain expenses associated with PRM.
The Hartford is a leader in the annuities marketplace in terms of assets under management, with $78.4 billion in the United States as of Sept. 30, 2011.
"This enhancement to PRM represents the next step in broadening our product portfolio, and demonstrates The Hartford's commitment to the annuity marketplace," said Rob Arena, head of Global Annuities for The Hartford. "We see a growing need for retirement savings and income products and we believe in the power of annuities to meet those needs as America ages."