Industrial Alliance has introduced a new lifetime guaranteed income product.
On November 24, the insurer announced the launch of its FORLIFE Series, which is being added to the IAG Savings and Retirement Plan.
The product is meant to help clients build up assets and then convert them into a stable income that is guaranteed for the rest of their lives. As such, it is divided into two stages: the savings stage, and the income stage.
During the savings stage, clients have access to 46 funds. After ten years, investors are guaranteed a minimum amount of retirement income which will vary according to the age they begin drawing down their assets. The minimum income will be equal to 5% of their deposits if withdrawals start at age 65.
In the income stage, clients age 50 and older receive a lifetime guaranteed income. Industrial Alliance says the income amount may increase over time thanks to automatic income resets that take place every three years.
Clients in the income stage have a choice between two different funds, namely the Guaranteed Maximum Income Fund, which invests 100% in fixed income assets, or the Guaranteed Income & Growth Fund, which consists of 70% fixed income and 30% equity investments.
A 100% death benefit guarantee is provided during both the savings and income stages.