NEW YORK--(BUSINESS WIRE)--New York Life today announced that its new Guaranteed Future Income Annuity1, a flexible way to generate a pension-like stream of lifetime income in the future, continues to far exceed sales expectations. Premiums thus far exceed $230 million with sales commencing only since July, making it the fastest growing annuity product solution in the company’s history.
“Americans who seek a guaranteed future retirement income are increasingly making the Guaranteed Future Income Annuity part of their holistic retirement plans. This product meets a simple, emotional need for the retirement income security that a pension once provided, and New York Life is proud to help give Americans their pensions back,” said Matt Grove, vice president in charge of the company’s annuity products.
Policyholders are able to set an income start date in the future, at which time they will begin receiving guaranteed income payments for the rest of their lives. Between the initial premium date and the income start date, they can continue to purchase more future income by making additional premium payments, and can defer or accelerate their income start date as their personal needs change.2
“We believe our sales success demonstrates there is power in simplicity,” added Grove. “As a deferred income annuity targeting the massive pre-retiree market, the Guaranteed Future Income Annuity creates a new category in the retirement income industry.”
The core audience for the Guaranteed Future Income Annuity is pre-retirees between the ages of 55 and 65 who plan to retire in 5 to 10 years. By purchasing the Guaranteed Future Income Annuity, these individuals have the potential to generate higher guaranteed income payments at retirement than they could achieve elsewhere, while reducing some market risk from their overall portfolio during the final years of their pre-retirement, when they can’t afford to endure a market downturn. The Guaranteed Future Income Annuity is available from New York Life career agents and select investment firms nationwide. Sales of New York Life’s Guaranteed Future Income Annuity, which initially began through agents, now make up 35% of guaranteed income annuity sales through New York Life’s field force of 12,250 agents across the country. The remaining 65% of sales come from New York Life’s traditional guaranteed income annuities, where income starts immediately.
New York Life Insurance Company, a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States3 and one of the largest life insurers in the world. New York Life has the highest financial strength ratings awarded to any life insurer by all four of the major credit rating agencies: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+).4 Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life Investments5 provides institutional asset management and retirement plan services. Other New York Life affiliates provide an array of securities products and services, as well as retail mutual funds. Please visit New York Life’s Web site at www.newyorklife.com for more information.
1Issued by New York Life Insurance and Annuity Corporation (NYLIAC) a wholly-owned subsidiary of New York Life. Available in jurisdictions where approved. Guarantees are subject to contract terms, exclusions and limitations, and the claims-paying ability of NYLIAC. This contract has no cash surrender value and no withdrawals are permitted prior to the income start date. Income payments are guaranteed at least as long as the annuitant is living, provided the annuitant is alive on the designated income start date. Contracts in which a Life Only payout option is selected do not provide a death benefit either prior to or after the designated income start date.
2 The ability to move the income start date is not available for the Life Only option or in CT. The policy owner can accelerate the start of income payments to any date 13 months after the latest premium payment or defer income payments up to five additional years from the original income start date selected.
3Based on revenue as reported by “Fortune 500, Ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, May 5, 2011. See www.money.cnn.com/magazines/fortune for methodology.
4Source: Individual Third Party Ratings Report as of 1/25/12.
5New York Life Investments is a service mark used by New York Life Investment Management Holdings LLC and its subsidiary, New York Life Investment Management LLC.