American International Group, Inc.’s ( AIG Quick Quote AIG - Free Report) unit, AIG Life & Retirement, recently introduced a protected lifetime income benefit named Lifetime Income Choice. Notably, the benefit will offer a flexible income solution, which addresses the varied retirement needs and goals of a consumer.
Launched for The Power Series of Index Annuities, the new benefit will be rolled out by AIG Life & Retirement in collaboration with independent marketing organizations (IMOs).
Equipped to customize the income strategy in accordance to consumers’ lifestyle needs, Lifetime Income Choice benefit can be availed in two forms — Max Income and Level Income. On one hand, the Max Income option tends to boost income during the early years of retirement, wherein expenditures usually remain high. On the other hand, the Level Income option assures a steady and lifetime source of income. Before the activation of lifetime income benefit, both the abovementioned options continue to offer guaranteed income growth every year thereby offering protection amid the volatile markets.
With the Lifetime Income Choice benefit, greater income can be received during the early years of one’s retirement. The new benefit not only provides for tax-deferred growth but also shields the principal of consumers from market downturns.
Shares of this Zacks Rank #3 (Hold) multiline insurer have soared 101.6% in a year compared with the
industry’s rally of 82.5%.
Moreover, the latest move seems to be time opportune amid the financial woes inflicted by the COVID-19 pandemic. These woes have aggravated financial insecurities of Americans, which in turn have given rise to the alarming need for enhanced retirement solutions. Also, an increase in the number of persons attaining the age of retirement across the United States has necessitated the need to articulate income strategies best suited for consumers to attain the income needed to achieve their planned retirement goals. As a result, the Lifetime Income Choice benefit seems to perfectly capitalize on the prevailing scenario with its added choice and flexibility options.
Furthermore, the recent move highlights AIG’s constant efforts to offer a comprehensive financial planning for retirees amid the COVID-19 induced volatile environment. Last year in October, the same unit of AIG rolled out an index annuity named Power Index Premier NY, which is the only annuity equipped with a living benefit rider option across New York. The annuity also offers growth opportunities to increase their lifetime income for up to 15 years and take care of the escalating retirement costs.
Notably, AIG disclosed plans to separate its Life & Retirement business in October 2020 in an effort to focus on the company’s General Insurance business. No final decision has been arrived yet about the structure of the initial disposition of up to a 19.9% stake of Life & Retirement. This unit of AIG has also inked a deal with Touchstone Investments in February 2021 which will acquire specific assets of the Retail Mutual Funds business of AIG Life & Retirement. The move intends to enhance focus on the unit’s core business.
Stocks to Consider
Some better-ranked stocks in the insurance space are
Old Republic International Corporation ( ORI Quick Quote ORI - Free Report) , James River Group Holdings, Ltd. ( JRVR Quick Quote JRVR - Free Report) , and Sun Life Financial Inc. ( SLF Quick Quote SLF - Free Report) . While Old Republic sports a Zacks Rank #1 (Strong Buy), James River Group and Sun Life Financial carries a Zacks Rank #2 (Buy) at present. You can see . the complete list of today’s Zacks #1 Rank stocks here
Old Republic, James River Group and Sun Life Financial, have a trailing four-quarter earnings surprise of 65.77%, 11.63% and 18.19%, respectively, on average.
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