Since annuity owners have a chance to earn larger accumulation value returns with this type of product design, the GLWB
rider is either omitted or is more modest than in the first category.
In November, it added managed volatility funds to its core variable annuity lineup and added three fund options, including a managed volatility fund, to the Nationwide Lifetime Income Rider, the GLWB
that can be added to existing nonqualified or qualified variable annuities, but not those inside 403(b) plans.
Typically, a candidate for an annuity with a GLWB
rider would be between 65 and 72, with enough income from other sources to cover most of their expected needs over the next 10 years, Lofton says.
Unfortunately, many annuities with a GLWB
can be complicated and expensive.
Foundations Annuity also offers an optional GLWB
Rider with attractive guaranteed payout rates and less complexity than many FIAs.
Year Surrender Premium Agent's GLWB GLWB
PTP Charge Bonus Commission Rollup Charge Cap 2007 10 yrs.
rider tailored for the "income now" client might provide an upfront bonus to the benefit base.
Prudential Annuities, Prudential Financial's domestic annuity business, in January increased its Highest Daily Lifetime Five GLWB
After the GLWB
rider exercise date, the enhanced death benefit is reduced by withdrawals in the same proportion as the annuity value is reduced.
Based on the research's optimal retirement income allocation, the point along the efficient frontier that best reduced the risk of failure and heightened the odds of success included an FIA with a GLWB
in the portfolio mix.
Sure, the GLWB
offers a minimum lifetime income stream, but you can get this on an indexed annuity for free.
Clients need to consider many factors when considering selection of a GLWB
benefits such as Ovation II.