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Monday, September 10, 2001 American Skandia Targets 401k Investors American Skandia has rolled out a new product entitled Plus40. It is designed to be an optional guaranteed issue term life insurance rider. It would be issued in conjunction with the firm's deferred variable annuities. The offering is funded with after-tax monies. The firm believes that it will be a popular feature because it can be used to offset income taxes made due because of the death of an annuitant on rollovers from 401(k) plans, 403(b) plans, tax-sheltered annuities, or IRAs. It is targeting those who are retiring from, say, a defined contribution plan and worry about the taxes their beneficiaries may owe. "Tax-deferred variable annuities are a great way to save for retirement and defer federal income taxes until you're in a lower tax bracket. They're the only product that can provide the security of guaranteed income payments for life. But if you die before you deplete your deferred annuity savings, your beneficiaries will owe income taxes on the earnings in the account. Unlike earlier industry enhancements, Plus40 covers 40% of the total annuity Account Value, not just growth. The difference is dramatic," opined Patricia J. Abram, chief marketing officer. Other details of the program include:
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