AIG Aims New Index Annuity At Regulation-Focused New York

AIG Life & Retirement today announced the launch of the Power Index Premier NY Index Annuity with Lifetime Income Builder. The new product goes to market amid a tough regulatory environment in New York.

Developed exclusively for the state, AIG said the Power Index Premier NY is currently the only index annuity that gives New York residents the option of a living benefit rider.

New York passed Regulation 187 last year, considered the toughest annuity sales rules in the country. Many insurers have shied away from selling products in the state.

Guaranteed living benefit (GLB) riders typically provide lifetime income that can help keep pace with rising retirement costs. The Lifetime Income Builder GLB rider, available exclusively with Power Index Premier NY, delivers lifetime income that is guaranteed to grow every year that income is deferred for up to 15 years.

In an environment of heightened economic and market uncertainty, "Americans are looking for financial products that can help them accumulate assets while ensuring their lifetime income will grow and not decline due to market volatility," AIG said in a news release.

According to new research from the Alliance for Lifetime Income, 70% of pre-retirees are feeling more pessimistic about their financial futures, and only 33% are confident they will have enough income to cover retirement expenses.[1]

“We are delighted to bring consumers a lifetime income solution that can provide more certainty in today’s unpredictable times,” said Bryan Pinsky, Senior Vice President of Individual Retirement Pricing and Product Development at AIG. “As the only company to offer an index annuity with a GLB rider in New York, we’re continuing our legacy of innovation and our commitment to help clients grow and protect their income for life.”

Power Index Premier NY combines tax deferral, principal protection against down markets, growth potential through a diverse range of index interest accounts, and guaranteed lifetime income growth to help consumers prepare for retirement—all with no annual fees.

“With the launch of this innovative index annuity, AIG Life & Retirement now offers New York residents a complete suite of annuities with guaranteed living benefit riders, including the Polaris Variable Annuities with Lifetime Income Max and the Assured Edge Income Builder NY Fixed Annuity,” said Pinsky. “We’re better positioned than ever to address the lifetime income needs of our New York clients and to support our distribution partners who are helping clients build a brighter financial future.”

[1] Alliance for Lifetime Income. COVID-19 Retirement Reset #3. https://www.allianceforlifetimeincome.org/feature/americans-more-pessimistic-about-retirement-plans-due-to-pandemic/

This report compiled by InsuranceNewsNet staff.