Nassau Re, a provider of insurance and reinsurance products, has rolled out its latest single-premium multi-year guarantee annuity (MYGA), known as Nassau MYAnnuity (5X, 7X).
Available through independent marketing organisations (IMOs), Nassau MYAnnuity is the first new insurance product from Phoenix after its acquisition in 2016.
Nassau MYAnnuity (5X, 7X) is being offered with guaranteed interest rates of up to 3.5% and 5- or 7-year guarantee periods.
Nassau Re CEO Phil Gass said: “In partnership with our IMOs, we are excited to launch our first new annuity since the closing of the Phoenix acquisition, and our first product under the Nassau Re brand.
“Over the last two years, we have invested significantly in our infrastructure and technology to enhance our existing products and make doing business easier for our distribution partners. Adding MYGAs to our product portfolio is a first step to expand and diversify our product offerings.”
Nassau Re chief product and service officer for insurance segment Tom Buckingham said: “Nassau MYAnnuity is an attractive product for individuals looking for higher guaranteed interest rates and safety of principal as they plan for retirement.”
The new offering can be purchased by paying a single premium payment ranging from $15,000 to $1m.
The insurer is offering customers an option to select a 10% free withdrawal amount, which would slash the guaranteed interest rate by 0.25%, or no free withdrawal amount for the full guaranteed interest rate. The guaranteed interest rates are 3.40% for 5X and 3.50% for 7X.
The required minimum distributions (RMDs) will not invite any surrender charges or market value adjustment, the company noted. Furthermore, the plan offers customers a death benefit equal to their contract value.
At the end of the guarantee period, customers will have option to either surrender any amount of the contract or renew their contract.
After the first year, customers can annuitise the contract any time and choose from seven fixed annuity payment options.
Nassau Re also noted that early withdrawal penalties may be waived for nursing home confinement and terminal illness.