MassMutual Enhances Variable Annuity Portfolio, Providing Greater Retirement Income Options
Massachusetts Mutual Life Insurance Company (MassMutual) announced today several enhancements to its variable annuity (VA) product portfolio, including expanded investment choices from well-known firms and a shorter contingent deferred sales charge (CDSC).1
Two MassMutual VA products – MassMutual Transitions SelectSM and MassMutual EvolutionSM – now have more investment choices with three new investments in American Funds® and two in which Baring Asset Management, a MassMutual subsidiary, will serve as sub-adviser. In addition, enhancements have been made to the contracts’ Guaranteed Minimum Income Benefit (GMIB) options allowing greater flexibility, and MassMutual Evolution now also has a shorter CDSC schedule.2
“Our quality solutions for retirement income are supported by MassMutual’s 157-year tradition of providing sound financial strength and a broad portfolio of products and services, which helps financial professionals better serve their clients in an increasingly challenging environment,” said Richard LaVoice, national sales manager, Retirement Income at MassMutual.
Enhancements to the portfolio include:
Expanded Investment Choices. Three new investments in American Funds and two new funds sub-advised by Baring Asset Management are available for new or existing MassMutual Transitions Select and MassMutual Evolution contracts.
The three new investments in American Funds are: MML American Funds® Growth, a domestic growth fund; MML American Funds® International; and MML American Funds® Core Allocation -- a fund-of-funds seeking moderate growth with a 65 percent equity and 35 percent fixed income fund mix.3
The two new funds where Baring Asset Management will serve as sub-adviser are: MML China and MML Strategic Emerging Markets that invests chiefly in developing countries’ equity securities.
GMIB Enhancements. MassMutual Guaranteed Income Plus 5SM and MassMutual Guaranteed Income Plus 6SM GMIB options are available for an additional charge. These benefits provide a GMIB value, compounding at a defined interest rate. Interest can be withdrawn dollar-for-dollar for immediate income needs and GMIB value also can be applied to a fixed annuity payment for future income. Additional enhancements include:
* The maximum issue, reset and exercise ages have increased by five years, providing more time for older investors to benefit from the new GMIB. As a result, maximum issue and reset ages have been extended to 80 years old, while the maximum exercise age has increased to 90.
* New contract owners may also benefit from an automatic annual reset of their GMIB value, which can occur on or after the first contract year and equal current contract anniversary value for greater income potential. Those who have automatic reset may opt out annually. Resets start new waiting periods.
* On or after age 90, if the GMIB has not been exercised, then contract value will equal no less than 60 percent of the GMIB value, guaranteed, contingent upon the claims-paying ability of MassMutual.
Greater Flexibility. MassMutual Evolution’s CDSC schedule has been reduced from five years to four. Total separate account expenses are now at 1.75 percent and a 0.20 percent credit will be applied annually to contract values beginning at the end of contract year ten, rewarding long-term investors.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.