Fidelity, Metlife Variable Annuity Provision Surpasses $1 Billion

MetLife Inc., a provider of insurance, annuities and employee benefit programs, and Fidelity Investments, a provider of financial services and retirement products, announced first year sales for the MetLife Growth and Guaranteed Income variable annuity totaling more than $1 billion.

The MGGI solution is a straightforward, deferred variable annuity with a living benefit launched in November 2009, exclusively distributed by Fidelity, that achieved sales of more than $1 billion in its first 12 months, Fidelity says. MGGI is the only deferred variable annuity with a living benefit currently distributed through Fidelity, the company says, adding that it allows individuals approaching or living in retirement to use a portion of their retirement assets, particularly from a 401(k), 403(b), IRA or other savings account, to provide a guaranteed lifetime income stream for an individual or for his or her spouse.

The product was designed to provide the potential for growth when markets are up, offer downside income protection against market declines, and allow individuals to retain control of their assets and access a portion of their account value at any time during the contract.

Fidelity says MGGI is issued by MetLife, and includes a built-in, guaranteed withdrawal benefit for life that ensures guaranteed lifetime withdrawals of between 4% and 6% of the single premium investment, depending on the age of the client. Once established, the withdrawal percentage does not change, according to Fidelity.

Factors contributing to MGGI’s sales growth may include an increasing demand among Americans for investments designed to provide guaranteed income in retirement, along with the appeal of a product that is designed to provide a balance between providing guaranteed lifetime income and the potential for investment growth, says Fidelity.

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