The way I understand this thing is (and feel free to correct me if I have it wrong). I "give" the Annuity Company say $100,000 at age 68 - they give back $6,000 every year AND if the balance in the account exceeds the initial contribution 6% of that amount BUT (assuming the account does not earn a greater than 6% return) NEVER less than that initial 6% amount, in this case $6,000 per year. So, if this is the case, you have insured the downside and could profit from the upside (ignoring inflation). Dosen't sound too bad.
As FinanceDude says, these things have been around for a number of years. The details have been changing. I've heard that some companies are trying to add this feature to regular mutual funds, which could dramatically increase sales.
I think it's useful to think of this thing as a traditional mutual fund with a side guarantee.
Today, you can put $100,000 into any mutual fund and have the fund send you a monthly check for $500 (which amounts to $6,000 per year or 6%).
At the end of the first year you look at your fund balance. If it is below $100,000, you continue the $500 per month (no inflation increase). But if it's above $100,000, you tell them to increase the monthly check. Say the balance is $110,000, then you change your check amount to $550.
You continue this "ratchet" pattern as long as your money holds out.
It's nearly certain that if you do this long enough you will eventually hit a bad string of years and your account will go into a downward spiral. However, if you start at 68, odds are you will die before you hit that bad string.
All of the above is possible on any mutual fund today. The new feature would be that the fund sells you insurance which pays off only if your fund balance hits zero before you die. If that happens, the insurance continues your monthly payments, without any more adjustments, as long as you live. My guess is that insurance regulators say that this extra feature really is "insurance", and they get to regulate it.
So, if you want to buy this guarantee today you have to buy the whole package from an insurance company. I think they sell it as a rider on a variable annuity. At least that's what I think the article is talking about.
Of course the advantage over a traditional pay-out annuity is that you can cancel the deal any time you want and walk away with your fund balance. I'd assume the disadvantage is that the monthly payments aren't as big, but I can't say for sure. That comparison is kind of complex because of the ratcheting nature of the monthly checks with this approach.