- 10,340
So I was talking to my LFG VA wholesaler and he mentioned an interesting statistic that an LFG actuary told a group of wholesalers in a meeting one day;
Only about 4% of income riders are ever actually used....
To say that another way; 96% of rider owners had an unnecessary 1% yearly loss....
VAs are basically just sold on the riders these days.... but how many are actually using these riders?
If you arent there 20 years from now to remind them, how many will even remember thy have an income rider?
Yes, the company will send reminders, but how many clients actually read what the company sends them??? (we all know the answer to the last one!!)
Another reason I still have trouble getting totally on the Rollup/Income Rider train; is that the rollup is great, but the income riders dont usually account for inflation, and its almost impossible to get a step-up during the income phase (LFG excluded).
Honestly, wouldnt a client be better off saving the 1% and moving their funds to a Lifetime SPIA?
I am convinced of this more and more
Only about 4% of income riders are ever actually used....
To say that another way; 96% of rider owners had an unnecessary 1% yearly loss....
VAs are basically just sold on the riders these days.... but how many are actually using these riders?
If you arent there 20 years from now to remind them, how many will even remember thy have an income rider?
Yes, the company will send reminders, but how many clients actually read what the company sends them??? (we all know the answer to the last one!!)
Another reason I still have trouble getting totally on the Rollup/Income Rider train; is that the rollup is great, but the income riders dont usually account for inflation, and its almost impossible to get a step-up during the income phase (LFG excluded).
Honestly, wouldnt a client be better off saving the 1% and moving their funds to a Lifetime SPIA?
I am convinced of this more and more