Prudential Annuities, the domestic annuity business of Prudential Financial Inc. in Newark, N.J., said that it has introduced a variable annuity optional living benefit that guarantees 5% annual compounded investment growth for up to 10 years and a 5% annual withdrawal stream for life.
The benefit, Lifetime Five, gives investors a guaranteed stream of withdrawal income based on the greatest of: their annuity investment growing at 5% compounded annually for up to the first 10 years, or the highest account value attained at any contract anniversary date for up to the first 10 years, or the account value on the first withdrawal date, the company said Monday.
Investors may elect Lifetime Five any time after buying an annuity that offers the benefit through Prudential or American Skandia; no waiting period is required to begin taking the guaranteed withdrawal income.
The cost is 0.60% of the average daily net assets in the subaccounts per year.
