Annuity FYI does not receive compensation from any of the insurance companies on this website. You are strongly urged to consult with a financial professional to determine if an annuity product is suitable to your financial situation. Annuity FYI accepts no responsibility for any investment decision made by any user of this website, and it is not responsible for any advice or recommendation made to any user by unaffiliated financial professionals to whom the user is referred. The information published at this website is not intended to be a recommendation to purchase an annuity. Any information provided through this website or through links to other websites are provided for educational and general informational purposes only and should not be construed as legal, investment, financial or tax advice. All quotes, applications, rate lock ins, or offers to sell are handled by an unrelated financial services firm that is not affiliated with or owned by AFYI Holdings Group LLC. Annuity FYI offers no financial products and does not furnish individual investment or financial advice. Annuity FYI provides users with general and educational information about annuities and may refer users to unaffiliated financial professionals who are licensed in the user’s state and thereby qualified to address a user’s individual financial situation, which could include evaluating an annuity, providing rates or illustrations and discussing investment risks. The website is owned by AFYI Holdings Group, LLC (“Annuity FYI”), a Florida company. The term “our” or “we” means Annuity FYI, its website(s), and any agent of Annuity FYI. The term “you” means a user of this website. By using this website, you agree to the following Disclaimer, Terms and Conditions, and Privacy Policy. The following disclaimer governs the use of and links from it. Speak with an expert if you think that New York Life’s Clear Income fixed annuity with living benefits is right for you. You might find a “cheaper” rider from an insurer rated far below New York Life. When comparing these types of products, it’s important to consider the rider fees and the financial strength ratings of the insurer selling the annuity. We can’t yet determine if people are better off with with fixed annuity that has a living benefit and roll-ups or an indexed annuity that has a cap and living benefit features that are similar. Clear Income is targeted at people who are near retirement age, conservative and are looking for a guaranteed income floor to protect their retirement savings. Indexed annuities are the closest options, particularly because they are aimed at the same consumers. Variable annuities with living benefits are becoming harder to find than they were a few years ago, so this new product from New York Life might the change that the markets were seeking.īeacon Research’s president said that there are really no products in the market to compare with New York Life’s Clear Income fixed annuity. Morningstar found that the first choice for allocating VA assets is in moderate allocation accounts, the second choice is in conservative allocation accounts and the third choice is actually in fixed accounts. But recent research has found that a lot of people put a good portion of their variable annuity assets into fixed accounts. The main reason for purchasing a variable annuity product is often for the market upside potential. New York Life believes that this new fixed annuity competes with variable annuities based on its rates and roll-up. With $80 billion in yearly sales, variable annuities account for the largest percentage of total annuity sales. The Clear Income fixed annuity was introduced to capture some of the variable annuity market. The current withdrawal rate is 5.25% for those aged 65-69 and is tiered based upon age. This added benefit costs 75 basis points. Your income base, which is used to calculate your lifetime payments, increases 5% for up to ten years. The main difference between this product and other fixed annuities is the guaranteed lifetime withdrawal benefit. After the seven years is up, you receive an interest rate that renews every year. Your interest rate is guaranteed for seven years, the same length of time as the surrender period. This information comes from Darla Mercado’s Investment News article “ New York Life raises the living benefit stakes – on a fixed annuity.” The Clear Income fixed rate annuity performs like a traditional fixed annuity during the first seven years. This deferred fixed annuity is one of the first to offer guaranteed lifetime withdrawal benefits comparable to those of variable annuities and indexed annuities. New York Life Insurance Company released a unique fixed annuity product last October without any introduction or fanfare.
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