Investment guidelines to support guaranteed income
Offer clients a choice of investment approaches
For a simplified approach, the SecurePay Protector benefit has a choice of preselected allocation portfolios. Each offers a distinct approach and range of equity and fixed income allocation targets, so even your more risk-adverse clients can customize a strategy to help meet their goals.
Protective Allocation Portfolios
Simplify the investment process with preallocated portfolios based on various levels of risk tolerance. All 7 portfolios are available during accumulation. The Balanced Toward Growth, Balanced Toward Growth and Income, Balanced Toward Income, Moderate Income, and Income Focus portfolios are also available once clients begin to take income.
- Growth Focus: 80% Equity / 20% Fixed Income
- Growth: 70% Equity / 30% Fixed Income
- Balanced Toward Growth: 60% Equity / 40% Fixed Income
- Balanced Growth and Income: 50% Equity / 50% Fixed Income
- Balanced Toward Income: 40% Equity / 60% Fixed Income
- Moderate Income: 30% Equity / 70% Fixed Income
- Income Focus: 20% Equity / 80% Fixed Income
American Funds Insurance Series® Allocation Portfolios
Each portfolio blends investment options from American Funds for objective-based growth potential. All 5 portfolios are available during accumulation. The Global Balanced Growth and Income, Balanced Growth and Income, and Conservative portfolios are also available once clients begin to take income.
- Global Growth: 80% Equity / 20% Fixed Income
- Growth: 80% Equity / 20% Fixed Income
- Global Growth & Income: 65% Equity / 35% Fixed Income
- Growth and Income: 65% Equity / 35% Fixed Income
- Global Balanced Growth and Income: 50% Equity / 50% Fixed Income
- Balanced Growth and Income: 50% Equity / 50% Fixed Income
- Conservative: 40% Equity / 60% Fixed Income
For a custom approach, you can help clients build their own diversified portfolio to meet their specific needs with our Allocation by Investment Category program. This program is available during the accumulation and distribution phase of the contract.
Allocation by Investment Categories (AIC)
Each investment option has been assigned to an investment category based on investment risk. Clients may allocate to any investment option in the following categories, provided they follow the minimum and maximum allocation requirements indicated below.
During accumulation phase:
- Conservative Allocation: 10% - 100%
- Moderate Allocation: 0% - 90%
- Aggressive Allocation: 0% - 40%
During distribution phase:
- Conservative Allocation: 35% - 100%
- Moderate Allocation: 0% - 65%
- Aggressive Allocation: 0% - 25%
Other related topics
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 prospectus for a variable annuity and its underlying investment options. Investors should read the prospectus carefully before investing. Prospectuses may be obtained by calling PLICO at 800-456-6330.
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