Guaranteed withdrawal benefit riders and lifetime income riders are features offered with some variable annuity contracts - and they can be quite appealing because they do just that; they guarantee lifetime income.
In addition, some index - linked annuities provide opportunities to protect a portion of the annuity's account value, while variable annuities with
a guaranteed withdrawal benefit feature can protect the amount of a person's future income.
When you hear about «guaranteed death benefits» (a benefit for beneficiaries should the annuitant die before payments begin) and «income guarantees» or «
guaranteed withdrawal benefits,» remember to read the fine print to see how they actually work.
Another feature provides
a guaranteed withdrawal benefit for life in an optional rider available for an additional fee.
Another feature provides
a guaranteed withdrawal benefit for life as an optional feature available for an additional fee.
They may be insuring your future retirement income by providing
a guaranteed withdrawal benefit rider, or insuring a specific amount of death benefit to go to your heirs, or insuring a minimum return.
For clients who want to protect themselves against this risk, immediate annuities, longevity insurance, single premium deferred annuities, and variable annuities with
a guaranteed withdrawal benefit or guaranteed income benefit feature should be evaluated and considered.
When looking for a variable annuity that offers
a guaranteed withdrawal benefit rider or lifetime income rider, here's what to look for: