Presidential Life's new Sentinel stands guard

In response to recent economic strains, Presidential Life Insurance Company has reintroduced a deferred benefit fixed annuity. The product, similar to Great Depression-era annuities, was designed as a "wealth preservation" technique.

"While there are a couple of deferred income contracts in the market, to our knowledge, this is the sole annuity contract, of its' specific design available to consumers," said Mettler, adding, "If you want retirement money to be there when you get there, and also understand how it's going to be there, then this contract should do it."

The annuity, renamed Sentinel, is neither savings nor investment but instead serves to "keep consumers from going broke during both the deferral and income periods while keeping the annuity contract simple and consumer friendly." The benefit behind the new program is a mixture of mortality discounting and an interest rate pricing formula designed to boost the return to the customer while providing the maximum financial security. Presidential Life says Sentinel is irrevocable, non-commutable, has no cash accumulation or surrender value and is only a "stand alone 'living benefit.'"