NEW YORK--(BUSINESS WIRE)--
MetLife announced today the launch of its Simple SolutionsSM
Variable Annuity (Simple Solutions) which is designed primarily for
individuals who are nearing or in retirement. The product will be
offered through banks, providing a new vehicle for financial advisors at
those banks to help clients turn retirement assets into a stream of
withdrawals they cannot outlive.
“The goal in creating Simple Solutions was to give individuals and the
banks which serve them an easy-to-understand, lower-cost variable
annuity with solid basic benefits,†said Kevin Crowe, managing director,
Bank Channel with MetLife. “Bank representatives may traditionally sell
fixed annuities, but this variable product offers additional benefits
their clients may need, all packaged in an easy-to-explain product with
a simple application.â€
Simple Solutions addresses both the retirement income and safety
considerations that motivate many of today’s retirees and soon-to-be
retirees, aged 60-80. The new product offers:
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Guaranteed lifetime withdrawals of up to 6% of the initial investment,
depending on the age of the client. These withdrawals will not
decrease, regardless of market performance.
-
Automatic annual increase in available guaranteed lifetime withdrawals
if the market performs well with the ability to lock in these
increases even if the market declines later.
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Three asset allocation portfolios and a money market portfolio managed
by MetLife Advisers, LLC, two of which are sub-advised by American
Funds. The portfolios provide an easy way to automatically diversify
investments.
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Lower cost annuity: no front-end sales charge; annual $30 account fee
waived for account values of $50,000 or more; 1.00% Mortality and
Expense and Administration Charge; Lifetime Withdrawal Guarantee rider
charge of 1.00% for Single Life version (maximum charge on step-up is
1.60%) or 1.20% for Joint Life version (maximum charge on step-up is
1.80%); and investment management fees ranging from .59%-1.12%.
“With only one income protection benefit, four investment options and a
simple, three-page application, Simple Solutions is an easier variable
annuity to explain,†said Crowe. “We designed this product to reach the
bank clients who might not otherwise have a chance to look at what a
variable annuity can do for them. So far, the response from financial
institutions has been positive.â€
Features in Detail
Built-In Lifetime Withdrawal Guarantee
Many variable annuities offer a variety of living and death benefit
riders from which to choose. Simple Solutions has one rider built into
the product. The Lifetime Withdrawal Guarantee rider enables individuals
to take lifetime withdrawals of up to 6% of their initial investment
each year if withdrawals begin after age 76. If a client begins
withdrawals between ages 65 and 75, the individual may take up to 5% of
their initial investment. If the client begins withdrawals before age
65, they may take up to 4% of their initial investment. The resulting
withdrawal amounts are guaranteed to either remain the same or increase.
Market declines will not cause a decrease.
If the client begins withdrawals prior to age 59½, the individual can
withdraw up to 4% of their initial investment each year until they have
received at least every dollar invested. In this situation prior to age
59½, lifetime withdrawals are not guaranteed.
Professionally Managed, Automatically Diversified Investments
Simple Solutions offers three diversified asset allocation portfolios
managed by MetLife Advisers, LLC. This makes diversifying easy. The
American Funds Balanced Allocation Portfolio and American Funds Moderate
Allocation Portfolio offer target equity exposure of 65% and 50%,
respectively, and combine the unique portfolio management process of
American Funds with MetLife Advisers, LLC’s asset allocation experience.
These portfolios invest directly in American Funds Insurance Series®
funds. The MetLife Defensive Strategy Portfolio offers a target equity
exposure of 35%, invests in portfolios from multiple investment managers
and is managed by MetLife Advisers, LLC with Wilshire Funds Management
serving as a consultant. Each of these three asset allocation portfolios
is built using holdings-based analysis to offer maximum diversification.
They are actively managed and rebalanced quarterly to help keep the
client’s investment strategy on track. The BlackRock Money Market
Portfolio is also available.
The Simple Solutions variable annuity is issued by MetLife Investors USA
Insurance Company, 5 Park Plaza, Irvine, CA 92614 and in New York only
by First MetLife Investors Insurance Company, 200 Park Avenue, New York,
NY 10166 (collectively and singly, MetLife Investors). Withdrawals of
taxable amounts are subject to ordinary income tax and if made before
age 59½, may be subject to a 10% Federal income tax penalty. Withdrawals
will reduce the living and death benefits and account value. Withdrawals
may be subject to withdrawal charges. Guarantees are subject to the
claims-paying ability and financial strength of the issuing insurance
company. Prospectuses for the product and the investment portfolios are
available at www.metlifeinvestors.com.
The contract prospectus contains information about the contract’s
features, risks, charges and expenses. The investment objectives, risks
and policies of the investment options, as well as other information
about the investment options, are described in their respective
prospectuses. Please read the prospectuses and consider this information
carefully before investing. Product availability and features may vary
by state. Please refer to the contract prospectus for more complete
details regarding the living and death benefits.
The MetLife Investors insurance companies are subsidiaries of MetLife,
Inc.
MetLife, Inc. (NYSE: MET) is a leading provider of insurance, employee
benefits and financial services with operations throughout the United
States and the Latin America, Europe and Asia Pacific regions. Through
its subsidiaries and affiliates, MetLife, Inc. reaches more than 70
million customers around the world and MetLife is the largest life
insurer in the United States (based on life insurance in-force.) The
MetLife companies offer life insurance, annuities, auto and home
insurance, retail banking and other financial services to individuals,
as well as group insurance and retirement & savings products and
services to corporations and other institutions. For more information,
visit www.metlife.com.
MetLife Advisors, LLC has retained Wilshire Funds Management, a division
of Wilshire Associates Incorporate, as a consultant and is responsible
for paying the consulting fees. Wilshire does not provide advice to
MetLife Investors underlying clients or have any discretionary authority
or control with respect to purchasing or selling securities, and does
not act as a “fiduciary†or “investment manager†as defined under ERISA,
to any investor. It is the responsibility of MetLife Advisers, LLC, to
accept, reject, or modify Wilshire’s recommendations and, if applicable,
each subsequent recommended change to them. Wilshire makes no
warranties, express or implied, as to results to be obtained from the
information provided to it, and neither Wilshire nor its affiliates
endorse, sell or promote this product or make any recommendations as to
the advisability of investing in it. Wilshire is a registered service
mark of Wilshire Associates Incorporated, Santa Monica, CA. All other
trade names, trademarks, and/or service marks are the property of their
respective holders.
MetLife, Inc.
Patrick Connor, 212-578-7039
pconnor@metlife.com
or
Jessica
Ong, 212-578-2154
jong@metlife.com
Source: MetLife, Inc.
