Скачать или смотреть Indexed Annuities - Income Riders

With Steve is special guest Sheryl Moore, indexed insurance product icon and creator of LifeSpecs, the number one industry due diligence software for financial professionals and carrier product design teams.

Income riders offer you the ability to achieve a guaranteed lifetime income stream. On day one, your annuity premium will begin to accumulate as a separate Guaranteed Minimum Withdrawal Benefit (GMWB) Value. After the first contract year, and as early as age 50, an amount determined by your age and current GMWB Value is available for lifetime income. This income is available to you without a surrender charge, Interest Adjustment (if applicable) or electing an annuity payout option.

The annual cost (called the GMWB Cost) will vary based on your chosen Bonus Credit Option if offered. This cost is calculated by multiplying a charge percentage (called the GMWB Charge) by the available GMWB Value on contract anniversary. This cost will be taken from your Contract's Accumulation Value on each contract anniversary and will continue until either your Contract or rider terminates. The annual costs is generally deducted every year--even in those years when a withdrawal is taken, when lifetime income payments have been elected or when no interest is credited to the contract. This annual GMWB cost percentage will not change.

Your GMWB Value will be reduced for any withdrawals taken either before or after lifetime income payments begin. If you take a withdrawal prior to beginning lifetime income payments, your GMWB Value will be reduced by the same percentage withdrawn from your Contract. For example, if you take an excess withdrawal of 7% of your Accumulation Value, your GMWB Value will be reduced by 7% as well, even though this may represent a larger dollar amount than what you had withdrawn.
Withdrawals taken to satisfy a Required Minimum Distribution (RMD) are treated differently. Withdrawals taken to satisfy your RMD will reduce the GMWB Value by the dollar amount withdrawn, instead of the percentage withdrawn.

Once you begin to take your Lifetime Income Payments, withdrawals taken in excess of your Lifetime Income Payment will reduce your GMWB Value by the same percentage withdrawn from your contract. Similar to the scenario described above, if you take an excess withdrawal of 10% in addition to your Lifetime Income Payment, your GMWB Value will be reduced by 10% as well, even though this may represent a larger amount than what you had withdrawn. Excess withdrawals may be subject to surrender charges and Interest Adjustments.