The annuity was created to offer two unique benefits. The Safety Growth Strategy is an index crediting strategy that allows for greater growth potential than traditional cap crediting strategies; and The Enhanced Guaranteed Income and Family Wealth Transfer Benefit (Enhanced G.I.F.T. Benefit) combines guaranteed lifetime withdrawals with an enhanced death benefit for one charge.
The Enhanced G.I.F.T. Benefit is an optional rider that offers clients guaranteed lifetime withdrawals, even if the annuity’s account value is reduced to zero, says The Phoenix Companies. The guaranteed withdrawal amount is calculated using the income benefit base in combination with an age-based withdrawal rate. The income benefit base is based on a 12%, simple interest roll-up of the income benefit base for the first 14 contract years, and an 11% simple interest roll-up for life thereafter, prior to the start of guaranteed withdrawals.
The Phoenix Companies says the rider also features an enhanced death benefit based on a 6%, compound roll-up of the death benefit base prior to age 70, and a 5% compound roll-up between ages 70 and 85, not to exceed double the premium. The clients can maximize income opportunity by deferring the start of withdrawals under the Enhanced G.I.F.T. Benefit, while remaining protected by the enhanced death benefit until the beginning of the guaranteed withdrawals.
The Enhanced G.I.F.T. Benefit also is the persistency bonus to the benefit base, which serves to increase the income benefit base above and beyond the 12% simple interest roll-up, says The Phoenix Companies. This provides an additional increase for individuals looking to start taking retirement income after specified points in time.
