Sun Life Assurance Group of Canada, a member of Sun Life Financial, has added a principal protection rider to its variable annuity lineup.
Called Secured Returns, the rider allows investors to choose either a guaranteed minimum accumulation benefit (GMAB) or a guaranteed minimum withdrawal benefit (GMWB). The GMAB guarantees that after a 10-year period, the clients account value will be no less than the original investment. The GMWB allows an investor to withdraw up to 7% of the original investment each year. Sun Life is applying this rider to its MFS Regatta, MFS Regatta Masters, Futurity and All-Star variable annuities.
"With fixed products currently offering such low returns due to the interest rate market being at historically low levels, our variable annuity products with Secured Returns enable clients to benefit from potentially greater returns, with appropriate asset allocations, without having to worry about losing their principal investment," said Phil Polkinghorn, vice president, annuities division of Sun Life Financial U.S.