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Products September 21, 2012
MassMutual Releases Deferred Income Annuity
September 21, 2012 (PLANSPONSOR.com) – RetireEase Choice, a flexible premium deferred income annuity from MassMutual, was designed to guarantee a future income stream for financial security.
Reported by
Kristen Heinzinger
The company claims RetireEase differs from traditional deferred annuities because of the guarantee of a specific amount of future income at the time a purchase payment is made, since assets within the contract are dedicated to meeting long-term retirement income needs. RetireEase Choice provides no contract value or withdrawal provisions; the only distributions made from the contract are in the form of annuity payments or a death benefit.
Key features of RetireEase Choice include:
- Flexible purchase payments. Customers can make a single initial purchase payment with a minimum of $10,000. They can make subsequent purchase payment(s) of at least $500. Each purchases a specific amount of guaranteed lifetime income, based on annuity rates in effect at the time of each payment. Multiple purchase payments are combined into a single guaranteed income stream that begins on the selected annuity date.
- Payout options. Annuity options can provide guaranteed income for one life or two, and may provide beneficiary protection.
- Annuity date adjustment. The contract permits a one-time change to the annuity date for many options (in instances of job loss, serious health issues, etc.), and may be limited or unavailable due to required minimum distribution (RMD) rules.
- Return of purchase payment(s). If death occurs before the annuity date, any purchase payment(s) made will be paid to the beneficiary (except for the Single Life—No Death Benefit annuity option).
- Annuity payment acceleration. Owners of nonqualified contracts with a monthly annuity payment frequency can opt to receive three or six monthly annuity payments in a lump sum through a temporary change in annuity payment frequency. This option may be exercised up to five times over the life of the contract.
- Protection against inflation. This optional benefit can help offset the effects of inflation on annuity payment purchasing power.
For more information about RetireEase Choice, visit www.massmutual.com.
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