Aviva’s TargetBenefit Annuities Offer Customers Greater Flexibility, Less Complexity in Preparing for Retirement Needs

  Aviva’s TargetBenefit Annuities Offer Customers Greater Flexibility, Less
  Complexity in Preparing for Retirement Needs

Business Wire

WEST DES MOINES, Iowa -- March 11, 2013

Aviva USA launched a new fixed indexed annuity series today that brings
simplicity and flexibility to the annuity marketplace.

The TargetBenefit Annuities feature several innovative options to help
consumers demystify retirement planning. The product offers a personalized
approach to help someone preparing for retirement target their retirement
goals, growth potential and income needs.

“TargetBenefit is designed to restore a level of certainty to retirement
planning,” said Lance Sparks, senior vice president for annuity IMO sales and
distribution for Aviva USA. “With TargetBenefit, consumers have more options
to meet their needs and help them adapt to current market conditions.
Customers are looking for wealth accumulation, guaranteed lifetime income and
a product that is easy to understand. This flexible annuity can meet all those

Sparks said TargetBenefit does that with features that include:

  *Simplicity: The amount of the guaranteed lifetime income is based solely
    on the amount of premium, the customer’s age and how long they wait to
    start lifetime income benefits. Unlike other annuities on the market,
    there are no separate income account value or withdrawal percentages to
  *A statement of benefits: The first of its kind in the annuity industry,
    the statement of benefits provides a straightforward explanation of the
    monthly dollar amount the customer will receive when he or she starts
    drawing guaranteed lifetime income, regardless of market fluctuations;
  *Options: Two optional income riders increase flexibility for customers to
    decide the age at which they turn on the income stream. Customers can
    select either a fixed lifetime income benefit, or a slightly lower
    guarantee with the chance to participate in more market index upside
  *Extra peace of mind: The riders also offer a feature that triples the
    income payments in case the customer is admitted to a qualified care
  *Choice: Contracts are available with either 10- or 15-year withdrawal
    charge periods, both offering multiple interest-crediting strategies from
    which customers can choose.

“One of the biggest threats to a person’s retirement savings is inflation,”
Sparks said. “Another attractive feature of TargetBenefit is, at the time the
customer starts to take income, he or she can elect a level income option, or
an inflation-adjusted income option. The inflation-adjusted option will
typically result in a lower payout initially, but it increases annually based
on changes in the Consumer Price Index. People concerned about losing
purchasing power in retirement can choose this option, which enables their
annuity income to keep pace with inflation.”

Just as inflation is unpredictable, so are the income targets needed in
retirement. If a customer finds he or she doesn’t need the money once they
begin taking their guaranteed lifetime income, the money that could have been
withdrawn remains and continues to earn interest. The untapped guaranteed
income can be accessed as a lump sum in the future. This new concept for the
annuity industry is like having a tax-deferred piggybank that can be accessed
when needed to cover unexpected retirement expenses.

Sparks said although interest rates are at near-record lows, customers want
products that provide guaranteed income streams as well as accumulation.
Sparks said that demand resulted in creation of the innovative TargetBenefit

“TargetBenefit Annuities offer clients the opportunity to plan for and then
adapt to changes in their retirement income needs,” Sparks said. “We believe
the unique features we’ve built into the product are going to transform the
annuity marketplace by removing complexity and making annuities more
attractive and mainstream.

“By developing products like the TargetBenefit Annuities, Aviva USA is
demonstrating our commitment to the annuity marketplace. We also are committed
to finding ways to meet the needs of customers who are looking for clarity,
predictability and customizable solutions as they plan for retirement.”

More information about Aviva’s TargetBenefit Annuities can be found on

About Aviva USA
Aviva USA is a sales leader of indexed life insurance and indexed annuities.
Headquartered in West Des Moines, Iowa, Aviva USA also has offices in Topeka,
Kan., and Melville, N.Y. Aviva USA has approximately 930,000 customers and
employs 1,800 people across the country. Aviva USA is part of Aviva plc, the
world’s sixth-largest insurance group, and can trace its presence in the U.S.
back to 1896.


Aviva Media Contacts:
Kevin Waetke, Public Relations Director
Office: 515-342-3822
Cell: 515-782-3256
Steve Carlson, Public Relations Manager
Office: 515-342-6403
Cell: 515-782-6317
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