The Department of the Treasury and the Internal Revenue Service released new guidance that is “designed to expand the use of income annuities in 401(k) plans.”
GREENVILLE, S.C.--(BUSINESS WIRE)-- An axiom of military strategy – that no plan survives contact with the enemy – sums up the challenge Americans face as we prepare for retirement. A new product from Athene Annuity & Life Assurance Company is among the first to tackle this challenge head-on.
ATHENE Benefit 10 is a fixed index annuity paired with an enhanced benefit rider that provides up to five discrete benefits funded by a benefit base account. Clients can access their benefits when and if they are needed; at death, the remaining value in the base account is paid to their beneficiary.
“The enemies to a secure retirement are the ‘what ifs’ – life events we cannot predict and are difficult to plan for,” said Chris Grady, head of retail for Athene Annuity. “With its enhanced benefit rider, ATHENE Benefit 10 addresses uncertainty with a combination of benefits and flexibility we believe is unique in the industry.”
Solving for retirement’s “what ifs?”
“What if I outlive my money?” The rider’s guaranteed lifetime withdrawal benefit provides a stream of income in retirement.
“What if I become incapacitated?” Income is enhanced by 50 percent if the client becomes unable to perform two of six activities of daily living on a permanent basis.
“What if I’m confined to a health care facility, or am diagnosed with a terminal illness?” The balance of the rider’s benefit base is paid out over a period of five years;
“What if I die before my money is gone?” Beneficiaries will receive the remaining value of the benefit base account upon the death of the owner.
For example, a client can start a stream of guaranteed income at retirement, increase that income by 50 percent if she breaks her hip and requires assistance in dressing and bathing, then activate her confinement benefit if she moves to a nursing home. The amount of each benefit is guaranteed, and determined by the balance in her benefit base account at the time of activation.
“The real advantage of ATHENE Benefit 10 is a concept we call the ‘total client benefit,’ said Grady. “The client can draw on a range of benefits to provide income or meet expenses in retirement, and any balance remaining in the benefit base account at death is paid out to her beneficiary.”
ATHENE Benefit 10 features a 6 percent premium bonus that vests over a 10-year period. The enhanced benefit rider includes early income bonus of up to 10 percent if lifetime withdrawals are begun prior to the eighth contract anniversary.
The contract includes a fixed account with a 5-year guaranteed rate and two indexed accounts, one monthly additive, the other annual point-to-point, both linked to the S&P 500. These accounts provide safety of principal and interest rate guarantees, along with the potential to earn interest based on the performance of an index.
ATHENE Benefit 10 with Enhanced Benefit Rider is currently available in 21 states.
About Athene Annuity
A subsidiary of Bermuda-based Athene Holding Ltd., Athene Annuity & Life Assurance Company provides income solutions that help Americans prepare for retirement. For over a century, Athene Annuity has earned the trust of its policyholders through financial stability, integrity and service. Its main administrative office is in Greenville, S.C. For more information, please visit www.AtheneAnnuity.com.
About Athene Holding Ltd.
Athene and its companies manage net investment spread businesses with over $10 billion in assets under management. The companies fund themselves through reinsurance transactions, retail sales of fixed annuities, and sales of institutional funding agreements. Athene primarily invests in a diversified portfolio of highly-rated, liquid, fixed income securities. The principal Athene companies include Athene Annuity & Life Assurance Company, a Delaware-domiciled stock life insurance company focused on retail fixed annuity sales and reinsurance, Athene Life Re Ltd., a Bermuda-based reinsurer focused on the retirement services market, and Athene Life Insurance Company, an Indiana-domiciled stock life insurance company focused on the institutional funding agreement market.
Athene’s founders are James R. Belardi, CEO of Athene Holding Ltd. and Athene Annuity, and Chip Gillis, CEO of Athene Life Re and its majority shareholder is an affiliate of Apollo Global Management, LLC. Belardi previously served as president of SunAmerica Life Insurance Company and executive vice president and chief investment officer of AIG Retirement Services. Gillis previously served as the former head of Bear Stearns’ Insurance Solutions. Further information about our companies can be found at www.Athene.com.
Source: Athene Annuity & Life Assurance Company