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A New Role For Fixed Indexed Annuties – In The 401(K)

The thing about 401(k)s is that they offer mutual funds. Those funds provide investors with a way to save for retirement, says National Life Group. However, mutual funds don’t address employee safe-money concerns or the growing demand for retirement income guarantees. So, National Life Group started to offer a fixed indexed annuity as a standard plan option within the 401(k). Not many such annuities are available in 401(k) plans, so annuity and retirement experts are going to watch this one closely.

Called SecurePlus VIP, the policy is written by Life Insurance Company of the Southwest, a National Life business. It allows plan participants not only to accumulate retirement savings but also to access guaranteed lifetime income benefits, says Wade Mayo, head of the retirement division. The annuity is designed to complement – not replace – the traditional 401(k) investment choices, the carrier adds.

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