MetLife just launched two optional variable annuity riders — the Guaranteed Minimum Income Benefit Max and Enhanced Death Benefit Max, both designed to help with the ever-growing need to provide clients with more guaranteed income and consistent returns over time.
According to a recent MetLife poll, 75 percent of baby boomers and 88 percent of financial advisors say that they remain concerned about market volatility. Additionally, 54 percent of baby boomers said their comfort level for volatility was 10 percent or less, and one-fourth of boomers were only at ease with swings of 5 percent or less.
MetLife designed the new riders to offer clients flexible benefits. The GMIB Max and EDB Max give clients 6 percent compounded growth and 6 percent withdrawals per year of the benefit base and the same real-life flexibility as MetLife’s popular GMIB Plus and Enhanced Death Benefit riders, both of which will continue to be offered. Clients can adapt to changing circumstances by starting and stopping withdrawals at any time without losing the compounding feature. The riders also provide flexibility and choice for surviving spouses.
Clients who elect the GMIB Max and/or EDB Max may invest in one or more of the four Protected Growth Strategy portfolios, which are professionally managed investment portfolios that are designed to reduce risk and provide protection against market swings.
The Protected Growth Strategies include:
- AllianceBernstein Global Dynamic Allocation Portfolio, sub-advised by AllianceBernstein
- AQR Global Risk Balanced Portfolio, sub-advised by AQR Capital Management
- BlackRock Global Tactical Strategies Portfolio, sub-advised by BlackRock
- MetLife Balanced Plus Portfolio, advised by MetLife Advisers with an overlay sleeve sub-advised by PIMCO
Clients also have the ability to invest in the Pyramis Government Income Portfolio, sub-advised by Pyramis Global Advisors.
GMIB Max is available for 1 percent of the benefit base as an annual charge deducted from the account value. Upon an optional step-up of the benefit base, the charge could increase up to a maximum of 1.5 percent.
EDB Max is available for 0.6 percent of the benefit base for issue ages 69 or younger or 1.15 percent of the benefit base for issue ages 70-75 as an annual charge from the account value. Upon an optional step-up of the death benefit base, the charge may increase up to a maximum of 1.5 percent.
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