Symetra Life offers income annuity

Symetra Life Insurance Co. of Bellevue, Wash., today launched its Symetra Freedom Income annuity. This single-premium deferred payout annuity allows clients to purchase a stream of guaranteed income for a later period for a minimum of $10,000. Customers can pick out a date 10 to 20 years away to begin collecting income from the annuity. For example, a 65-year-old client who purchases the Symetra Freedom Income product and times the income to kick in at age 85 would pay $31,000 for a monthly income of $2,500. By comparison, a Symetra single-premium income annuity that is purchased at age 85 would cost $185,000 for the same amount of income. The downside, however, is that if the client dies before he or she begins collecting income, the company keeps the premium and uses it to fund other investors’ income stream. But this can be averted if the client buys a death benefit rider. “We’re finding that it has more applicability for [registered investment advisers],” said Rich Lindsay, senior vice president of Symetra’s life and annuities division. “If you take 12% to 15% of your portfolio and buy the longevity insurance to generate income, then the rest of your portfolio only has to last until you’re 85.”