AIG, Reliance Standard launch index annuities

AIG Life & Retirement and Reliance Standard Life Insurance Co. have introduced index annuity products aimed at solving challenges of market volatility and income needs, respectively.

The new Reliance fixed-index annuity, called the Reliance Accumulator, offers five-, seven- and 10-year durations, a fixed interest strategy and five index interest strategies based on two specific indexes from Standard and Poor’s. It also offers three index interest strategies tied to the S&P 500 index: annual point-to-point capped, annual point-to-point participation rate and annual monthly average capped.

The Reliance product also offers two index strategies tied to the S&P multi-asset risk control 5% ER index: annual point-to-point participation rate and annual point-to-point spread strategy.

Separately, AIG launched what it calls the X5 Accelerator Annuity, an index annuity that includes a bonus equal to 35% of the premium that's added to the lifetime income benefit, as well as a multiplier that can increase lifetime income by 250% of net interest earned every year during the accumulation phase.

The product, which will be marketed by Annexus through contracted independent distribution companies, also offers exclusive indices developed by Pimco and Morgan Stanley Investment Management to provide upside growth potential. The annuity also provides principal protection against market downturns.

[More: What inflation could mean for annuities]