Skandia Unveils Annuity Rider

September 10, 2001 ( - American Skandia Life Assurance Corporation on Monday introduced Plus40, a guaranteed issue term life insurance rider.

The product, funded with after-tax dollars, may help offset income taxes due at the death of the annuitant on rollovers from 401(k)s, 403(b) Tax-Sheltered Annuities, or IRAs according to Skandia.

Rider Range

Available as an option on newly-issued variable annuities beginning September 17, the Plus40 rider:

  • can pay beneficiaries a federal income tax-free amount equal to 40% of the annuity’s account value at the owner’s death, in addition to the annuity contract death benefit
  • is available to new purchasers of the company’s variable annuities between the ages of 40 and 75, and coverage may continue through age 95
  • does not require purchasers to answer any medical questions or undergo examinations.

Purchasers of Plus40, ages 40-75, cannot be turned down.