[April 18, 2013] American General Life Insurance Rolls Out AG Choice Index 10 Annuity. Tweet Apr 18, 2013 (Close-Up Media via COMTEX) -- American General Life Insurance Company announced its new AG Choice Index 10 annuity. This new index annuity offers upside growth potential with the guaranteed protection of a traditional fixed annuity. According to a release, AG Choice Index 10 can help individuals grow their retirement income without the risk of market loss. Contract owners receive a 4 percent premium enhancement on every premium paid in the first 30 days of the contract, a rate that may be difficult to match in today's low interest rate environment. Plus, they have the opportunity to earn additional interest based in part on the movement of the S&P 500 index without dividends. AG Choice Index 10 offers three interest-crediting strategies - a 1-year fixed interest account, an annual point-to-point index interest account, and a monthly point-to-point additive index interest account. When the S&P 500 is up, a client can earn interest based in part on the performance of the S&P 500. When the market is down, the annuity contract is guaranteed never to lose value due to market fluctuations. "The new AG Choice Index 10 annuity is a great retirement income solution in today's market," said John Deremo, Executive Vice President and Chief Distribution Officer, Life and A&H, AIG Financial Distributors. "We're in a historically low interest rate environment that has proved especially challenging for individuals seeking higher income. AG Choice Index 10 can provide these individuals with an attractive solution to grow a portion of their assets over the long term, while protecting their principal in a down market. Plus, thanks to our new optional guaranteed living benefit rider, AG Lifetime Income Plus, individuals have the opportunity to double their retirement income potential after just 10 years if they wait to take withdrawals." With AG Lifetime Income Plus, the Income Base--the amount on which lifetime withdrawals are based--is guaranteed to double to 200 percent of premiums paid, as long as no withdrawals are taken before the 10th contract anniversary. The rider also guarantees that retirement income will rise by 7 percent each year that withdrawals are not taken in the first 10 contract years. Contract owners can take out guaranteed withdrawals of up to 6 percent per year for life depending on when withdrawals begin and on how many individuals are covered. To receive these guaranteed benefits, withdrawals must be taken according to the terms of the rider. "AG Lifetime Income Plus is the only living benefit rider in the index annuity industry today that offers the opportunity to double an individual's Income Base over the contract's first 10 years," said Deremo. "Combining guaranteed income growth with lifetime withdrawals of up to 6 percent can help individuals secure more income for their future. We are confident that our new index annuity and guaranteed living benefit rider can be an important part of an individual's retirement savings." "People are struggling with new retirement realities - many do not have enough money saved to last their entire lifetime, retirement costs continue to rise and the market has been especially volatile over the last decade," said Rob Scheinerman, Chief Product Officer, AIG Life and Retirement. "People want protection and guarantees but need an opportunity to also grow their retirement savings without downside risk. This is precisely what AG Choice Index 10 and AG Lifetime Income Plus offer." "AIG Life and Retirement is keenly focused on our mission to be the premier provider of income solutions needed for financial and retirement security. American General's new index annuity and guaranteed living benefit rider are only two of a number of product launches we have planned across our businesses this year," said Scheinerman. American General Life Companies is the marketing name for a group of affiliated domestic life insurers, including American General Life Insurance Company (AGL). AIG Life and Retirement is a life insurance and retirement services organization. More Information: http://www.americangeneral.com http://www.aig.com/lifeandretirement ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]