The MetLife Growth and Guaranteed Income (MGGI) variable annuity is distributed exclusively through Fidelity and is the only deferred variable annuity with a living benefit sold through the company, according to a press release. MGGI allows individuals approaching or living in retirement to use a portion of their assets, either from a 401(k), 403(b), IRA, or other savings, to purchase guaranteed lifetime income for themselves or their spouses.
The product provides growth potential when the market improves and downside income protection if the market declines, according to the announcement. Individuals also retain control of their assets and can access a portion of their account value at any time during the contract.
MGGI is backed by MetLife and includes a built-in guaranteed withdrawal benefit for life and a death benefit that allows individuals to leave assets to their beneficiaries. It features the Fidelity VIP FundsManager 60% Portfolio, an investment option that offers exposure to multiple asset classes in one investment. The “fund of funds” portfolio invests in more than 30 mutual funds and maintains an appropriate target asset allocation mix of 60% in equities, 35% in fixed income investments, and 5% in money market portfolios.
The minimum single premium is $50,000, and all annuitants must be between the ages of 50 and 85.
The guaranteed withdrawal benefit for life provides for a set withdrawal rate determined by the age at first withdrawal on or after age 59½: 4% for ages 59½ – 64; 5% for ages 65 – 75; or 6% at age 76 or older.
Fees and charges for MGGI include an annual annuity mortality and expense charge for single and joint life coverage of 1.90% and 2.05%, respectively; underlying fund expenses (currently 0.84%); and a surrender charge of 2% for the first five years. Surrender charges do not apply to guaranteed withdrawal benefit amounts, annuitizations, and death benefits, and all fees and charges are deducted from or reduce the account balance. There are no maintenance fees or initial sales charges for the product.
More information is available at www.fidelity.com/incomeplus.