Genworth Financial, Inc. today announced the introduction of the SecureLiving(SM) Classic Indexed Annuity, issued by Genworth Life Insurance Company.
"The Classic Indexed Annuity is a powerful complement to our fixed annuity line up," says Pam Schutz, President of Genworth's Retirement Income and Investments group. "This product is another choice for Boomers seeking a secure way to save for retirement that includes protection of principal and tax-deferred growth."
Because the product's indexed interest rate is based on the performance of the S&P 500, it gives people an opportunity for potentially higher rates than other fixed interest alternatives.
"There are more than 240 index products on the market today with lots of moving parts and complexity," says Schutz. "Because our focus is on delivering consumer value in a clear way, we've designed a simpler product. Three key areas consumers focus on are surrender period, participation rate and tax treatment. The Classic Indexed Annuity is designed to deliver superior value on all three."
Surrender period refers to how long you must stay invested to avoid early- withdrawal penalties. The Classic Indexed Annuity offers no surrender charge after only seven years. The annuity also offers a waiver when funds are needed for extended hospital or nursing home stays of at least 30 days.
Participation rate is the percentage of the underlying index's gains that will be credited to you. The Classic Indexed Annuity offers 100% participation rate, up to the annual cap rate, currently 7%. For example, if the S&P rises 6%, you earn the full 6% because the participation rate is 100% (100% of 6%).
The Classic Indexed Annuity is a tax-deferred accumulation vehicle. You don't pay income taxes on interest earnings until you receive them, usually at retirement when you are likely to be in a lower income tax bracket.
SOURCE: Genworth Financial
CONTACT: Anna Gauthier, APR, of Genworth Financial, +1-804-289-3740,
Web site: http://www.genworth.com/