The Hartford is offering investors in its retail variable annuity offerings a guarantee that they will never get back less than the amount then invested, a spokesperson with the firm told the MutualFundWire.com. The guarantee remains in effect so long as investors adhere to certain restrictions including that their annual withdrawal does not exceed seven percent.

The new benefit is entitled "Principal First". It will be available to customers starting on August 5, 2002.

"We are making this available to all of our clients through our regular distribution channels," the official reported. "Typically, with a variable annuity you have to annuitize the contract in order to take advantage of that money stream. This lets clients withdrawal without having to annuitize."

Principal First guarantees that investors will not lose the money they invested, even if market performance negatively impacts the value of their variable annuity. The system also provides a benefit when the market performs well. After the five years, the investor can "step up" the guarantee to include their gains.

The insurer has a patent pending for this product. 

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