Transamerica Life Canada has launched a new retirement income product, Five for Life, which now is available for sale, the company announced Wednesday.

The newest offering in the Guaranteed Minimum Withdrawal Benefit (GMWB) market, the Transamerica product is specifically designed to benefit investors nearing retirement who are focused on saving, and those in retirement, drawing income from their savings.

“Many of these investors are worried that recent market losses, inflation and increased life expectancy are going to jeopardize their retirement plans,” says Geraldo Ferreira, vp, investment products at Transamerica Life Canada.

“Five for Life is an ideal retirement solution that allows Canadians to participate in market upswings, protects them from dramatic downturns and ensures they never run out of money.”

“Also, while there are other retirement income products currently in the market, we believe we have created a product that is easier for both advisors and clients to understand,” Ferreira said.

Five for Life offers a Guaranteed Lifetime Withdrawal Benefit that will provide policyholders with guaranteed annual income for life, starting the year they turn 65, with the potential to increase their income through bonuses and to lock in market gains through automatic resets.

Clients who defer taking income until age 75 will benefit from a higher withdrawal percentage of 5.5% versus the standard 5.0%.

The product also offers a 100% death benefit guarantee, a 75% contract maturity guarantee and the estate planning and potential creditor protection benefits offered by segregated funds.

Policyholders will be able to choose from a select offering of 23 individual fund and portfolio options, managed by some of Canada’s leading money managers.

Toronto-based Transamerica Life Canada is an Aegon company. Aegon is one of the world’s leading life nsurance and pension groups.

IE