John Hancock Unveils an Inflation Protected Annuity

John Hancock Annuities announced the release of a new fixed annuity product that provides owners with inflation protection. 

The “Inflation Guard” product offers principal protection through a fixed interest rate that is guaranteed through the first year of the contract. 

After the first year, the interest rate is floating.  This floating rate is based on a rate of inflation that is derived from the year-over-year change in the Consumer Price Index-Urban or “CPI-U.”  

A guaranteed margin is added to this inflation-based rate.  The margin is determined when the contract starts.  

The interest rate has a floor or minimum as well as a cap or maximum.  The floor is never less than zero.  Interest rates are determined on a weekly basis by John Hancock.

Source: Market Watch

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