Aviva has released a new annuity named Target Horizon. The product comes with income riders but also offers a much better accumulation strategy that other annuities in the market today. Trends in the annuity market are all moving toward offering new types of income riders (to generate future income streams) without any emphasis on the account accumulation (cash growth) of the product. Target Horizon moves against that trend by focusing on the ability to grown the account value substantially without risk of principal. The key components and features are as follows:
- State Approvals: Approved in all states except for: NY, VA, TX, OK, WA and DE
- Accumulation Strategy: 100% of all gains on an annual point to point basis after a spread. (“spread” is an amount of interest the company keeps prior to crediting interest to the account every year) Spread ranges from 2.00% to 4.85% depending on the product selected.
- Bonus: 3% to 7% depending on product and state (Look at attached comparison for specifics)
- Deposits: Single deposit only
- Free withdraw provision: 10% per year
- Surrender period: There is a 10 year product and a 15 year product
- Income rider: Can be added for 1.25% fee. Provides a base minimum interest rate per year plus annual gains stacked on top.
- Minimum Deposit: $5,000
Overall: The 100% annual point to point strategy with a spread is the best growth option available from any annuity currently. The income rider (also comes with a 3x payout for LTC) is competitive with others in the market but is on the higher end from a price standpoint at 1.25% a year. Call or email our office if you have questions, need additional detail or would like to get a quote.
LINKS TO PRODUCT INFORMATION
Aviva 10 vs 15 comparision guide
If you are a broker, agent or advisor that wants to offer this product you may obtain a contract here.Aviva New Product Contracting May 2013 Note: This is not a standard Aviva contract. You must complete a contract specific to the Target product to be authorized to sell it. Completed contracts can be emailed (Edward@croweandassociates.com ) or faxed (203)-567-6235 to our office.
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