Corebridge Financial, a provider of retirement solutions and insurance products, has announced the introduction of its new registered index-linked annuity (RILA), named Corebridge MarketLock Annuity.
This long-term insurance product is issued by its subsidiary, American General Life Insurance Company.
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An RILA is designed as a retirement solution without direct investment in the stock market.
The launch of MarketLock RILA is said to position Corebridge as the only top three annuity provider to offer products in every major category, including fixed, index, variable, and now registered index-linked annuities.
According to Corebridge, RILAs have been gaining traction within the US annuity market, with sales hitting new records for five consecutive quarters.
Their popularity is attributed to the balance they offer between growth potential and downside protection, which is particularly valuable in addressing retirement challenges such as inflation, healthcare costs, and market volatility.
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By GlobalDataCorebridge’s MarketLock RILA features an exclusive investment strategy known as the lock strategy.
This strategy allows for the locking in and crediting of rates based on the actual performance of the S&P 500 index when a preset growth target is achieved.
This can occur even before the term’s end date, securing gains immediately.
The lock strategy offers growth targets ranging from 30% to 100%, with terms of three or six years.
Once gains are locked, a fixed rate of interest is guaranteed until the next contract anniversary, at which point consumers can choose to transfer assets to any available MarketLock strategy account option.
Corebridge Financial president of individual retirement Bryan Pinsky said: “We recognise how essential it is for financial professionals to have a single trusted annuity provider that can help them meet the diverse retirement needs of all their clients.
“With MarketLock, Corebridge is expanding on what is already one of the broadest and most comprehensive annuity platforms in the industry. As more Gen Xers and millennials start planning for retirement, annuities and especially RILAs have become increasingly important in diversifying investment portfolios and helping to deliver growth potential with some downside protection.”
Earlier in 2024, insurance giant AIG sold a 20% ownership stake in Corebridge to Nippon Life Insurance Company of Japan.
This transaction aligns with AIG’s strategy to reduce its investment in Corebridge following its 2022 initial public offering.
