Quebec City-based Industrial Alliance Insurance and Financial Services Inc. (TSX:IAG) has added the FORLIFE Series to its individual savings and retirement plan.
The new lifetime guaranteed income product is intended to meet the needs of clients looking to grow their retirement savings through market investments in order to build up a stable, guaranteed lifetime retirement income.
The FORLIFE Series also meets the needs of clients seeking a lifetime guaranteed income right away, Industrial Alliance says.
“Today, we can’t plan for our retirement like before,” states Clément Gignac, Senior Vice-President and Chief Economist. “It’s important for us to offer investment solutions and income security products that can allow young retirees or those approaching retirement to counter their longevity risk and take full advantage of their long years ahead. One of these innovative solutions is the FORLIFE Series.”
The FORLIFE Series includes two stages to help clients build their retirement income:
In the Savings Stage, clients of all ages can take full advantage of market return potential and invest in a complete range of 46 funds, including a number of 100% equity funds. In addition, after 10 years, they will benefit from a contractual guarantee that ensures them a minimum amount of retirement income. This minimum income varies based on the age clients begin receiving income and is equal to 5% of their deposits if withdrawals begin at age 65.
The Income Stage allows clients age 50 and older to receive a lifetime guaranteed income. Their income can also increase over time thanks to automatic income resets carried out every three years. In addition to receiving a guaranteed income for life, clients have full access to the market value of their investments.
“During both the Savings Stage and the Income Stage, clients concerned about protecting their estate can count on a 100% death benefit guarantee for their invested deposits,” says Marie-Claude Poulin, director, savings and retirement products. “The FORLIFE Series offers clients a simple solution for creating their own flexible retirement plan within a single contract.”
Clients can both take advantage of market growth potential and count on a guaranteed income for life.
Two funds are offered to clients for their lifetime guaranteed income. The income rates on each fund are determined based on age, sex and interest rate levels.
The Guaranteed Maximum Income Fund is a 100% fixed income fund designed to maximize income.
The Guaranteed Income & Growth Fund is made up of 70% fixed income and 30% equity, and is designed to maximize capital preservation and potential for income growth.