MassMutual Adds First Retirement Income Withdrawal Benefit

SPRINGFIELD, Mass., Jan. 22 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) today announced enhancements to certain deferred variable annuities in its Retirement Income product portfolio. The MassMutual Lifetime Payment Plus(SM) guaranteed minimum withdrawal benefit (GMWB) and MML Asset Allocation fund series are both new enhancements now available where approved, subject to state availability.(1) These enhancements offer added flexibility and guarantees against market volatility for those facing retirement.

With the introduction of Lifetime Payment Plus, MassMutual becomes the highest rated insurer with a full suite of living benefits, according to data from Morningstar Annuity Research Center (formerly VARDS) and VitalSigns as of November 5, 2007.(2)

"With consumers facing retirements of 30 years or longer and increasingly volatile financial markets, today's long-term guarantees are only as strong as the company that issues them," says Richard LaVoice, national sales manager, Retirement Income.(3) "As a 156-year-old mutual life insurance company with a long history of outstanding financial strength, MassMutual is well positioned to stand behind the lifetime guarantees we offer our customers."

Guaranteed Minimum Withdrawal Benefit

MassMutual Lifetime Payment Plus is designed to guarantee minimum withdrawals for life and can be used by those who need lifetime income immediately or in a few years. It provides a guaranteed minimum payment, which can help remove the unknown from planning processes, along with an opportunity for increased income subject to underlying investment performance.

"The last decade or so prior to retirement can be a delicate balancing act for today's workers," LaVoice said. "They understandably want to preserve their retirement savings and simultaneously position those assets for growth to help fuel future income needs. A variable annuity with Lifetime Payment Plus can help achieve that balance or weigh alternative benefits."

If no withdrawals are taken in any year during the first 10 contract years, the benefit base automatically grows by six percent simple interest for that year as part of the following year's allowable withdrawal limit. And if no withdrawals are taken for at least 10 years or before age 70, whichever is later, the benefit base will be reset to a minimum value that equals 200 percent of first-year purchase payments and 100 percent of any additional purchase payments. For example, if a 60 year-old rolled $150,000 into an annuity with this feature, by age 70 they would be guaranteed a lifetime income of no less than five percent of a benefit base of no less than $300,000. This generates a minimum income of no less than 10 percent of the original purchase payment.

MassMutual Lifetime Payment Plus (current/maximum charge -- single life: 0.60%/1.50%; joint lives: 0.85%/1.50%) is available on select proprietary deferred variable annuities -- new contracts only, and requires 100 percent participation in a chosen asset allocation program.

New Asset Allocation Funds

MassMutual has also introduced five MML Asset Allocation fund-of-funds investment choices within several deferred variable annuities. The asset allocation funds are diversified with varying risk profiles to meet an investor's risk tolerance and time horizon. The MML Asset Allocation Funds use a dynamic approach to asset allocation and manager selection, which may also include introducing new money managers and additional asset classes in alignment with certain market environments and opportunities.(4)

Investors who opt for a guaranteed living benefit must either invest in an asset allocation fund or select from a broad array of funds across various asset classes within defined asset allocation parameters via Custom Allocation Choice.

Broad Portfolio

MassMutual offers several deferred variable annuities -- flexible- and single-premium, no-CDSC and simplified solutions -- that help certain investors accumulate assets for retirement income. Also available from MassMutual are fixed-deferred and immediate annuities; and an investment advisory program and IRA with mutual fund model portfolios and a multi-premium lifetime income annuity.

Important Considerations

A variable annuity is a long-term investment where all interest, dividends and capital gains accumulate tax-deferred. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative and underlying fund expenses.

Taxable withdrawals are subject to ordinary income tax and if taken prior to age 59 1/2, a 10% federal income tax penalty may apply. Variable annuities do not provide any additional tax advantage when used to fund a qualified plan.

Investors should consider buying a variable annuity to fund a qualified plan for the annuity's additional features such as lifetime income payments and death benefit protection. Variable annuities are subject to market risk where the investment return and principal value of an investment will vary so that units, when redeemed, may be worth more or less than their original cost. Guarantees are contingent upon the claims-paying ability of the issuing company.

Annuity contracts offer a free withdrawal provision to withdraw a percentage of contract value each year without incurring a contingent deferred sales charge (CDSC). Weigh the additional cost of MassMutual Lifetime Payment Plus against the benefits provided by this optional benefit. Ensure the variable annuity contract suits investment goals before MassMutual Lifetime Payment Plus is elected.

MassMutual Lifetime Payment Plus cannot be elected without purchasing a variable annuity, which may be inappropriate for investors who do not foresee a need for lifetime income and whose primary focus is tax deferral. Withdrawals prior to age 60 or that exceed 5% of the benefit base on an annual basis will reduce benefit base and negatively impact the value of this feature. However, waiting to take withdrawals may limit the value of this benefit as life expectancy will be shorter.

About MassMutual Financial Group

MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. MassMutual and its subsidiaries have more than $450 billion in assets under management at year-end 2006.

Founded in 1851, MassMutual is a mutually owned financial protection, accumulation and income management company headquartered in Springfield, Mass. MassMutual's major affiliates include: OppenheimerFunds, Inc.; Babson Capital Management LLC; Baring Asset Management Limited; Cornerstone Real Estate Advisers LLC; MML Investors Services, Inc., member FINRA and SIPC (www.finra.org and www.sipc.org); MassMutual International LLC and The MassMutual Trust Company, FSB. MassMutual is on the Internet at www.massmutual.com.

(1) Optional features cannot be elected without purchasing a variable annuity. Ensure the variable annuity contract is suitable for investment goals before optional features are elected.

(2) Only one of the three living benefit options (guaranteed minimum accumulation, income or withdrawal benefit) available via certain MassMutual annuities may be elected per contract.

(3) Guarantees are based on the claims-paying ability of the issuing company.

(4) Funds offered in a fund-of-funds structure, such as the MML Allocation Funds, may have higher expenses than a direct investment in the underlying funds because a fund-of-funds bears its own expenses and indirectly bears its proportionate share of expenses of the underlying funds in which it invests.

    --  NOT A BANK OR CREDIT UNION DEPOSIT OR OBLIGATION
    --  NOT FDIC OR NCUA INSURED
    --  NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
    --  NOT GUARANTEED BY ANY BANK OR CREDIT UNION
    --  MAY GO DOWN IN VALUE

Annuity products are issued by Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company. C.M. Life Insurance Company, 100 Bright Meadow Boulevard, Enfield, CT 06082, is non-admitted in New York and is a subsidiary of Massachusetts Mutual Life Insurance Company, 1295 State Street, Springfield, MA 01111-0001.

Principal Underwriter: MML Distributors, LLC, 1295 State Street, Springfield, MA 01111-0001. Wholly owned subsidiary of Massachusetts Mutual Life Insurance Company.

Variable annuities are sold by prospectus. Before purchasing a variable annuity contract, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity contract and its underlying investment choices. For this and other information, obtain the prospectuses for the variable annuity contract and its underlying investment choices from your registered representative. Please read the prospectuses carefully before investing or sending money.

Media Contact: Mark Cybulski

                   (413) 744-5427