Protective® Aspirations variable annuity: the couples’ retirement income solution you’ve been missing
If you help couples grow their nest egg and secure guaranteed income for life, regardless of market conditions, you may have considered annuities. And because you're a financial professional who wants to ensure clients have the control and flexibility they need in retirement, now may be a good time to reevaluate your current income strategy and explore what the Protective Aspirations variable annuity has to offer.
InsuranceNewsNet talks to Corinne Anderson, Protective’s VP of retirement product strategy, about the unique features that make Protective Aspirations variable annuity a highly competitive lifetime income solution.
INN: Why is the Protective Aspirations variable annuity ideally suited for couples planning for retirement?
Corinne Anderson: Protective Aspirations provides couples confidence and flexibility when retirement plans inevitably shift. When planning for two, there’s twice as much that can change.
With joint and single payout options that don’t have to be chosen until income is taken, couples can plan but pivot if necessary.
Also beneficial for couples is the waiver of surrender charges if the contract owner or spouse is diagnosed with a terminal illness or confined to a nursing home. The spouse doesn’t need to be on the contract to use this benefit.
INN: What product advantages help address clients’ needs?
Anderson: Protective Aspirations is built to address three core client needs. One is maximizing the power of tax-deferred growth.
The second is guaranteed lifetime income. With the optional SecurePay Protector benefit, clients can address two objectives in retirement — accumulation and distribution. By offering high levels of guaranteed income and an investment component, this rider helps maximize and protect retirement income. The optional SecurePay Investor benefit is for those who want to maximize growth opportunities with a safety net. The fee for SecurePay Investor is significantly lower than SecurePay Protector, so clients can keep more money invested in the market with no restrictions on the subaccount allocations. Both of these riders enable the client to lock in market gains.
The third need is legacy planning. With enhanced death benefit options, clients can lock in market gains to potentially enhance what they leave to loved ones.
INN: What makes Protective Aspirations stand out in the variable annuity landscape?
Anderson: With most variable annuities, there’s no credit or carryover if you take less than your maximum allowable withdrawal amount. And if you need additional money from the retirement portfolio, taking it out of a variable annuity would reduce the guaranteed amount for life. But a unique feature of Protective Aspirations variable annuity is the SecurePay Reserve benefit, which gives clients the flexibility to defer up to three times their annual withdrawal amount for a financial health emergency or other large purchase without reducing their lifetime guarantee.
They can keep this reserve for as long as there is money in their contract, whereas with competitor products, the amount in reserve may only be available for a year.
Additionally, Protective offers both GLWB [guaranteed lifetime withdrawal benefit] riders through RightTime. Let’s say, initially, you invest in Aspirations primarily for tax-deferred growth. Then realize you need access to guaranteed income. RightTime allows the GLWB rider to be added later. RightTime is available for an additional 0.10% on top of the GLWB fee.
INN: How does this product meet the challenges of today’s economic environment?
Anderson: The guarantees are designed specifically to address the economic environment. Both lifetime income riders are based on the premium amount, so clients know their guaranteed income amount at the time of purchase and can be confident their guaranteed lifetime income won't be impacted when the market's down. Additionally, the SecurePay Protector rider offers guaranteed benefit base growth for a maximum of 10 years or until benefit election.
INN: Why is it important to consider this product right now?
Anderson: With the market volatility and inflation we’re experiencing today, many are anxious about lifetime income and retirement. The pandemic prompted them to address life insurance needs, and now they’re considering how to support themselves for the rest of their life so they aren’t a financial burden to their family. Variable annuities can be ideal for capturing potential market growth, which is so important to growing savings and being able to retire with guaranteed income you can’t outlive.
INN: Is there anything else you’d like to add?
Anderson: In helping clients make long-term plans, you want a company that’s going to live up to its guarantees, even if — and especially if — it’s 30 to 40 years down the road. I encourage folks to do their research. Protective has a 115-year history of carrying out the same mission: to be by our customers’ side to help them feel secure in retirement no matter what life has in store.
GO HERE to learn how you can unlock clients’ full retirement potential with the Protective Aspirations variable annuity.
Protective refers to Protective Life Insurance Company (PLICO), Nashville, TN, and its affiliates.
Protective is a registered trademark of PLICO. The Protective trademarks, logos, and service marks are property of PLICO and are protected by copyright, trademark, and/or other proprietary rights and laws.
Protective Aspirations variable annuities is a flexible premium deferred variable and fixed annuity contract issued by PLICO in all states except New York on policy form VDA-P-2006. SecurePay Investor benefits issued on rider form VDA-P-6063. SecurePay Protector benefits issued on rider form VDA-P-6061.
Investors should carefully consider the investment objectives, risks, charges and expenses of a variable annuity, any optional protected lifetime income benefit, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at 800-456-6330.
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