Three enhancements coming to Protective%%®%% Aspirations variable annuity
October 7, 2024
We’re updating Protective Aspirations variable annuity to offer more flexibility to help secure clients’ retirement income and legacy goals. Applications submitted on or after Oct. 7, 2024 can take advantage of these three enhancements.
1. New advance payout options for the SecurePay ProtectorSM benefit
The SecurePay Protector benefit will now offer four advance payout options for more retirement income flexibility. The new options will allow clients to receive higher income for a certain period, followed by a reduced lifetime annual withdrawal amount. The advance payout options include:
- Advance 3-year
- Advance 5-year
- Advance 8-year
- Advance 10-year
The new advance payout options are in addition to the standard, guaranteed lifetime income payout option already offered by the SecurePay Protector benefit.
2. SecurePay NHSM withdrawal rate cap increasing to 15%
We’re increasing the SecurePay NH benefit withdrawal rate cap from 10% to 15%1 to give clients more income flexibility should they become confined to a nursing home. Included with both lifetime income benefits available with Protective Aspirations variable annuity, the SecurePay NH benefit will now:
- Double the lifetime withdrawal rate up to a maximum of 15% for five years if the covered person is confined to a nursing home, if single coverage is elected.
- Increase the lifetime withdrawal rate by 25% if one spouse is confined to a nursing home or double the lifetime withdrawal rate up to a maximum of 15% if both spouses are confined to a nursing home, if joint coverage is elected.
In addition, the SecurePay Protector benefit fee is increasing to 1.5% (previously 1.4%).
3. New Maximum Daily Value enhanced death benefit
We’re adding a Maximum Daily Value enhanced death benefit option to help meet more legacy protection goals. This option will provide clients with a death benefit equal to the maximum contract value attained each day, minus withdrawals, before age 83.2 The Maximum Daily Value death benefit is available for issue ages 0-77 for a 0.5% fee.3
Explore the enhanced Protective Aspirations variable annuity
Visit our Protective Aspirations variable annuity product page to learn more about how this solution can help your clients secure their retirement goals. If you have questions, please contact your national account manager.
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1 In California, the lifetime withdrawal rate maximum is 10%. To qualify for SecurePay NH, the client(s) must: be confined to a qualified nursing care facility; be unable to perform two out of six specified Activities of Daily Living or be diagnosed with a severe cognitive impairment; have not been in a nursing home one year before and after purchasing a lifetime income benefit. Proof of continued qualification is required for each contract year in which this benefit is claimed.
2 When a withdrawal is made, an adjustment is made to the death benefit in the same proportion to the amount withdrawn, including any associated surrender charges, reducing the contract value. The death benefit option must be selected when the client applies for the contract and it can’t be changed after the contract is issued.
3 The monthly fee for each enhanced death benefit is based on the value of the death benefit and is assessed at the beginning of each contract month. Review the prospectus for more details.
Protective refers to Protective Life Insurance Company (PLICO), Nashville, TN. Variable annuities are distributed by Investment Distributors, Inc. (IDI), a broker‐dealer and the principal underwriter for registered products issued by PLICO. IDI is located in Birmingham, AL. Product guarantees are backed by the financial strength and claims-paying ability of PLICO.
Protective Aspirations variable annuity is a flexible premium deferred variable and fixed annuity contract issued by PLICO in all states except New York under policy form series VDA-P-2006. SecurePay Investor benefits issued under rider form number VDA-P-6063. SecurePay Protector benefits issued under rider form number VDA-P-6061. SecurePay Nursing Home benefits issued under form number IPV-2159. Policy form numbers, product availability and product features may vary by state.
Variable annuities are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Investments in variable annuities are subject to fees and changes from the insurance company and the investment managers.
Withdrawals reduce the annuity’s remaining death benefit, contract value, cash surrender value and future earnings. Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals. During the withdrawal charge period, withdrawals in excess of the penalty-free amount may be subject to a withdrawal charge.
Investors should carefully consider the investment objectives, risks, charges and expenses of a variable annuity, any optional protected lifetime income benefit, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at 800-456-6330.
WEB.5829935.07.24
2 When a withdrawal is made, an adjustment is made to the death benefit in the same proportion to the amount withdrawn, including any associated surrender charges, reducing the contract value. The death benefit option must be selected when the client applies for the contract and it can’t be changed after the contract is issued.
3 The monthly fee for each enhanced death benefit is based on the value of the death benefit and is assessed at the beginning of each contract month. Review the prospectus for more details.
Protective refers to Protective Life Insurance Company (PLICO), Nashville, TN. Variable annuities are distributed by Investment Distributors, Inc. (IDI), a broker‐dealer and the principal underwriter for registered products issued by PLICO. IDI is located in Birmingham, AL. Product guarantees are backed by the financial strength and claims-paying ability of PLICO.
Protective Aspirations variable annuity is a flexible premium deferred variable and fixed annuity contract issued by PLICO in all states except New York under policy form series VDA-P-2006. SecurePay Investor benefits issued under rider form number VDA-P-6063. SecurePay Protector benefits issued under rider form number VDA-P-6061. SecurePay Nursing Home benefits issued under form number IPV-2159. Policy form numbers, product availability and product features may vary by state.
Variable annuities are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Investments in variable annuities are subject to fees and changes from the insurance company and the investment managers.
Withdrawals reduce the annuity’s remaining death benefit, contract value, cash surrender value and future earnings. Withdrawals may be subject to income tax and, if taken prior to age 59½, an additional 10% IRS tax penalty may apply. More frequent withdrawals may reduce earnings more than annual withdrawals. During the withdrawal charge period, withdrawals in excess of the penalty-free amount may be subject to a withdrawal charge.
Investors should carefully consider the investment objectives, risks, charges and expenses of a variable annuity, any optional protected lifetime income benefit, and the underlying investment options before investing. This and other information is contained in the prospectuses for a variable annuity and its underlying investment options. Investors should read the prospectuses carefully before investing. Prospectuses may be obtained by contacting PLICO at 800-456-6330.
WEB.5829935.07.24