HORSHAM, Pa. – May 2, 2014 – The Penn Mutual Life Insurance Company is pleased to announce the launch of its new Inflation Protector Withdrawal Benefit, available with the Smart Foundation Variable Annuities. The new rider will add an extra measure of flexibility to this suite of variable annuities in order to help meet a broader range of situations and goals that individuals face in retirement. Penn Mutual was the first company to offer an inflation adjusted rider tied directly to the CPI-U (Consumer Price Index for all Urban Consumers) and is committed to helping retirees manage the impact inflation can have on their retirement income.
Highlights of the Inflation Protector Withdrawal Benefit include:
- Guaranteed retirement income that will grow by at least the rate of inflation, up to 6 percent (4 percent in New York) and will never be less than zero.
- The freedom to choose from any of Penn Mutual’s 29 investment options during the accumulation phase and 14 investment options in the withdrawal phase.
- A choice of withdrawal options, allowing clients to take income based on individual needs.
- The opportunity for annual step-ups that can help increase long-term income potential.
- Available to add with Smart Foundation, Smart Foundation Flex and Smart Foundation Plus variable annuities.
Penn Mutual offers its suite of Smart Foundation Variable Annuities as a tax-deferred way to save for retirement with optional benefits that allow consumers to enjoy competitive withdrawal rates, flexible account access and protection for loved ones. The Inflation Protector Withdrawal Benefit is the fourth optional benefit now offered with that suite of products as a way to help clients tailor the annuity to meet their unique needs, goals and risk tolerance. The other optional benefits currently offered include:
- Guaranteed Growth and Income Benefit, which allows clients to gain from market upside potential to help maximize retirement income and protect against volatility
- Enhanced Death Benefit, which provides added protection by maximizing death benefit value
- Guaranteed Minimum Accumulation Benefit, which allows clients to invest in the market without losing their initial purchase payment.
“As we continue to operate in a market environment that changes constantly, we always want to offer competitive products that meet the changing needs of clients,” said Andrew Martin, Assistant Vice President, Product Management for Penn Mutual. “The addition of the Inflation Protector Withdrawal Benefit to the existing riders available with our three Smart Foundation Variable Annuity Products makes it easy for clients with diverse needs and goals to find the variable annuity and rider combination that works best for them. Plus, having a withdrawal benefit tied to changes in the CPI-U offers clients assurance that their money will grow at least with the rate of inflation.”