Preference Premier offered by MetLife

Introduction
Type of Product Variable Annuity
Product NamePreference Premier
Offered byMetLife
Company Info

The Metropolitan Life Insur... read more

Contract and Purchasing
Minimum Premium Payment5000
Maximum Premium Payment1000000
Minimum Additional Premium Payment500
Investments
Ability to Select Asset AllocationYes
Total Number of Investment Options64 [Find annuities with more investment options]
Fixed Account
Minimum Fixed Account Rate Guarantee1 [Find annuities with higher fixed account minimum rate guarantees]
Features and Benefits
Free WithdrawalsYes
Free Withdrawal Limit10
Waiver of Withdrawal ChargesAvailable
Guaranteed Death BenefitAvailable
Are Telephone Transactions AllowedYes
Fees and Expenses
Minimum Total Fees and Expenses1.68 [Find annuities with lower fees and expenses]
Minimum Mortality and Expense Risk Charge "M&E Fee"1.15 [Find annuities with lower mortality and expense fees]
Maximum Mortality and Expense Risk Charge "M&E Fee"2.05 [Find annuities with lower mortality and expense fees]
Administrative Fee30.00 [Find annuities with lower administrative fees]
Contract Maintenance Fee0 [Find annuities with lower contract maintenance fees]
Early Withdrawal Charges / Surrender Fees
Minimum Investment Management Fee0.53 [Find annuities with lower investment management fees]
Maximum Investment Management Fee1.42 [Find annuities with lower investment management fees]
Sales Compensation
Maximum Commissions7.15 [Find annuities with lower commissions] [Find annuities with higher commissions]
Minimum Commissions1
Contact Information
Company OfferingMetLife
Company TypeInsurance Company
Phone Number
Websitewww.metlife.com
Talk to a Financial Advisor
Contact Information Connect with a Financial Advisor
Reviews and Ratings
Average Review

3.5/5 from 2 Reviews


Key Phrases:
Annuity Product Types: 

Product Ratings and Reviews

Rating:
3
Average: 3 (1 vote)

Wondering if MetLife recognized the irony in naming their most currrent guaranteed minimum income benefit rider.

The most current version of Met's GMIB is referred to as Max V.  A more appropriate title would be Max IV but that title went to the previous iteration which actually had richer features than the Max V.

If this all sounds confusing, it is...  GMIB Max V is a living benefit feature that increases contract owners' benefit base by 4 percent each year and allows for 4 percent withdrawals.

For what it's worth, the enhanced death benefit also allows for a 4 percent annual increase.

The prior version of the GMIB (and GMDB) had a 5 percent rate.

Of course MetLife is not alone in dialing-down the rates associated with their guaranteed living benefits.  The entire industry has either been exiting the variable annuity business or significantly modifying their living benefit features.  

Low interest rates are the driver of these trends.  At a certain point, though, consumers and their financial advisors need to assess how much bang for the buck there is through these living benefit riders.  Consider, for example, that the 4 percent Max V GMIB is actually 3 percent in real terms when the 1 percent fee is deducted.

3 percent is not exactly a robust level of lifetime income and as many advisors point-out, maintaining a 3 percent systematic withdrawal is not entirely unrealistic even in our low interest rate environment.

 

 

2,865 reads
Rating:
4
Average: 4 (1 vote)

There is an interesting feature available through this product that allows for an investment strategy that is sort of similar to dynamic rebalancing.

MetLife refers to this as their "optional automated investment strategy" and there is a choice between 2 approaches to this automated rebalancing.

First, with the "Rebalancer" option the contract owner is allowed to select their own asset allocation (including the allocation to the fixed account) and the entire account is then rebalanced on a monthly basis to stay in line with their desired allocation.

The other option is the "Index Selector" where the contract owner selects among 5 preset asset allocation models that range from conservative to aggressive and are intended to reflect the owner's level of risk tolerance.  Model components include the Barclays Aggregate Bond Index, MetLife Stock Index, MSCI EAFE Index, Russell 2000 Index and MetLife Mid Cap Stock Index.

The automated approaches are a nice feature since they remove some of the complexity and day-to-day investment decision making responsibility.  

 

1,508 reads

While efforts are made to keep information on this page accurate and updated, the information shown on this page may be variable or out of date. Always check the issuing company's website or other public data listings for the latest information applicable to you as actual information may vary.