BELLEVUE, Wash.--(BUSINESS WIRE)-- Symetra Life Insurance Company today unveiled Symetra True Variable Annuity(SM) — a new variable annuity (VA) product that offers clients of fee-based and fee-only financial advisers a way to help maximize investment growth potential, improve tax efficiency and manage risk in support of their long-term financial objectives.
“Symetra True VA gives clients flexibility, a broad selection of investment options and a guaranteed lifetime income feature. And while True offers low fees, we didn’t sacrifice quality in the product’s design,” said Dan Guilbert, Symetra executive vice president, Retirement Division. “Our variable annuity investment platform gives clients access to funds managed by some of the biggest names in the industry on a tax-deferred basis.”
True’s robust investment lineup includes more than 100 underlying fund choices, including the new Symetra Mutual Funds Trust, featuring funds sub-advised by Dimensional Fund Advisors LP and exclusive arrangements with sub-advisers DoubleLine® Capital LP and Yacktman Asset Management Co. Through True, clients also have the ability to secure guaranteed annual lifetime income while retaining liquidity and flexibility by investing in specific Symetra Pension Reserve Funds(SM) sub-advised by Russell Investments.
Sophisticated asset allocation and investment tools are available to help clients maintain a disciplined focus on their long-term investment strategy. An optional tool gives advisers a way to automate risk management on a per-sub-account basis in both up and down markets, based on a client’s risk tolerance.
“With True, we’re offering advisers access to a processing and trading platform not typical in the annuity space. This state-of-the-art system allows for portfolio modeling and seamless asset allocation and block trading,” said Guilbert.
The target customers for True VA are clients of fee-only registered investment advisers and fee-based advisers affiliated with broker-dealers. The product is supported by a dedicated Symetra wholesaling team.
Here are some key features of Symetra True VA:
Low Fees1 and Flexibility— There are no front-end or back-end sales charges with True, and contract fees are low. For a $25,000 minimum investment, True offers flexibility without surrender charges. This means clients are not locked into a contract if their needs change over time.
Tax Deferral— With True, investment activity occurs within a variable annuity that defers taxation on interest income, dividends and capital gains. Taxes are not paid on earnings when the contract value is transferred from one sub-account to another, or when rebalancing among sub-accounts to manage risk.2
Premier Investment Lineup— True gives clients the flexibility to select from a broad array of actively managed funds and passive index funds advised by some of the world’s leading money managers.
Guaranteed Lifetime Income— True offers guaranteed annual lifetime income at a defined retirement date through investments in specific Symetra Pension Reserve Fund sub-accounts,3 which are sub-advised by Russell Investments. Clients can secure a guaranteed income stream while maintaining liquidity and control of their assets.
Automated Sell Strategy Tool — An optional automated system tool gives advisers the ability to establish sell orders based on a client’s personal risk tolerance level. The tool is designed to lock in gains or limit losses based on a predetermined percentage amount (“trigger”) for any sub-account in which the client is invested.4
Wealth Transfer Benefit— The optional Wealth Transfer Benefit (WTB) rider can help pay for beneficiaries’ tax burden by providing an additional amount of 50 percent of the contract’s accumulated earnings upon the client’s death to help cover taxes.5 The rider can be elected when the contract is purchased, and the rider charge only applies when there is a gain in contract value.
“We believe the market is ready for a VA without living benefit riders that offers clients low fees and a marquee lineup of investment options,” said Guilbert. “Symetra True VA is designed as a modern solution for clients seeking flexibility and value in a variable annuity product.”
For more information about Symetra True Variable Annuity, visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.trueva.com&esheet=50313239&lan=en-US&anchor=www.trueva.com&index=1&md5=283aaf638f9fbd77677402895fa94079. For advisers interested in a selling agreement, call 1-855-TRUEVAS (1-855-878-3827).
Symetra Life Insurance Company is a subsidiary of Symetra Financial Corporation (NYSE: SYA), a diversified financial services company based in Bellevue, Wash. In business since 1957, Symetra provides employee benefits, annuities and life insurance through a national network of benefit consultants, financial institutions, and independent agents and advisers. For more information, visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.symetra.com&esheet=50313239&lan=en-US&anchor=www.symetra.com&index=2&md5=cfe24fcadbc1c1f0818b38931568faf0.
Before investing, carefully consider the investment objectives, risks, charges and expenses. This and other information is contained in the contract prospectus and the underlying fund prospectuses. You may call or write your Registered Representative or Symetra for free copies of the prospectuses or visit http://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.trueva.com&esheet=50313239&lan=en-US&anchor=www.trueva.com&index=3&md5=2c3957d1d15c985ab989a46d7525c4d4 for online copies. Please read them carefully before investing.
Securities are distributed by Symetra Securities, Inc. (SSI). Symetra True Variable Annuity is a flexible premium deferred variable annuity issued by Symetra Life Insurance Company (SLIC). Contract form number is ICC12_RC1, and Wealth Transfer Benefit rider form number is ICC12_RE1 in most states and is not available in all U.S. states or any U.S. territory. SSI and SLIC are affiliates and are both located at 777 108th Avenue NE, Suite 1200, Bellevue, WA 98004-5135.
Variable annuities, which are suitable for long-term investing, are subject to market risks, including the loss of principal invested. Like many variable annuities, this contract has terms and limitations for keeping it in force. Please contact your Registered Representative for complete details.
Symetra Life Insurance Company does not provide investment, legal or tax advice.
Guarantees and benefits are subject to the claims-paying ability of Symetra Life Insurance Company.
The Symetra Pension Reserve Funds are not insured by the Pension Benefit Guaranty Corporation (PBGC).
1 Source: Morningstar survey of 1,854 variable annuities on Dec. 31, 2011. The total mortality and expense, administrative and distribution expense fees for True VA equal 0.60%, placing it in the lowest quartile of variable annuities. If the maximum sub-account fund facilitation fee of 0.15% , which is not currently charged, were included in total expenses, True VA would still be in the lowest quartile of variable annuities. The comparison of total expenses does not include fees associated with the underlying funds.
2 When you eventually withdraw contract value from the contract, taxes generally will be due on investment gains at your ordinary income tax rates. Additionally, a 10% federal tax penalty may apply to withdrawals made before the age of 59 ½.
3 This prepaid annuity option guarantee of annual lifetime annuity payments is provided by Symetra Life Insurance Company. Please refer to the Symetra True Variable Annuity prospectus for more details.
4 Minimum trigger is a 5% increase or decrease. Automated Sell Strategy orders will expire after 18 months. You cannot monitor/transfer from a Symetra Pension Reserve Fund sub-account. However, you can transfer into a Symetra Pension Reserve Fund sub-account. The strategy does not ensure a profit or guarantee against a loss.
5 Certain conditions, restrictions and limitations are associated with the Wealth Transfer Benefit (WTB) rider. If contract owners elect this rider, they may not realize the benefits if they experience no gain or consistently negative rates of return. The annual rate used to calculate your WTB rider charge will increase as you age and could cause the WTB rider charge applicable to you also to increase. This increase could be significant.
Safe Harbor Statement
Some of the statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give expectations or forecasts of future events. In particular, these include statements relating to future actions, plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts.
Any or all forward-looking statements may turn out to be wrong. They can be affected by inaccurate assumptions or by known or unknown risks and uncertainties. Many such factors will be important in determining Symetra’s actual future results. Consequently, no forward-looking statement can be guaranteed, and forward-looking statements may be adversely affected by factors, including general market conditions and competitive product development. Risks, uncertainties and other factors that might cause such differences include the risks, uncertainties and other factors identified in Symetra's filings with the U.S. Securities and Exchange Commission.
Symetra does not undertake any obligation to publicly correct or update any forward-looking statement if Symetra later becomes aware that such statement is not likely to be achieved.
Symetra Life Insurance Company
Diana McSweeney, 425-256-6167
Source: Symetra Life Insurance Company
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