Phoenix has introduced two fixed annuities, the Phoenix Index Select and Phoenix Index Select Bonus annuities. Both are single-premium annuities designed to be simpler than other products on the market, carrying a 10-year surrender charge, guaranteed principal protection and three optional guaranteed minimum withdrawal benefit riders investors can use to meet their individual income requirements. The bonus annuity offers an upfront 5% premium.
Phoenix said it is offering the two new annuities to meet heightened interest in growth potential without exposure to downside market risk. As Tom Buckingham, senior vice president of life and annuity product development, put it, “Right now, there is increased demand from both distributors and consumers for products that take advantage of the market’s earning potential without exposing core retirement funds to the risk of loss. At the same time, many people are concerned that a fixed rate of return alone may not keep pace with inflation.”