New York Life and Fidelity Join to Offer Variable Annuity
May 7, 2019 by Allison Bell
New York Life Insurance Company and Fidelity Investments are teaming up to offer a new variable annuity contract, the New York Life Premier Variable Annuity — P Series, with Investment Preservation Rider contract.
The deferred annuity contract comes with a guaranteed minimum accumulation benefit (GMAB) rider.
The GMAB rider can protect an annuity holder’s principal when stock prices fall.
An analysis commissioned by New York Life shows that, in a wide range of conditions, the performance of an annuity with a GMAB rider will beat the performance of “other annuities currently offered in the marketplace,” Fidelity said Monday in an annuity launch announcement.
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Wink Chief Storyteller’s Note: 1. Why would you even compare the performance of a VA to a fixed insurance product?
2. All indexed annuities guarantee principal preservation for free. Variable annuity GMABs have a charge.
3. Don’t get me started on how indexed annuity purchasers “manage risk”…
4. A VA is simpler than an indexed annuity- what?!? They are both complex; keep it real.
5. The annuitant risks losing everything with a VA, but is guaranteed to receive back their principal plus interest on the indexed annuity.
6. If doing any comparison, why wouldn’t you compare a VA GMAB to an indexed annuity GMAB? -sjm
