JoeAnnuity
Expert
- 31
I think I already know the answer to this but are there any indexed or regular fixed annuities that have a lifetime income rider on them?
Thanks
Thanks
New York Lifetime Income
- Thread starter JoeAnnuity
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- 4,132
Trying to figure out your question while reading your name?
Since you cannot outlive an Annuity in distribution phase, why would you need a lifetime income rider?
Since you cannot outlive an Annuity in distribution phase, why would you need a lifetime income rider?
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JoeAnnuity
Expert
- 31
I don't know, why don't you ask American Equity who had the Premier Eagle 10, a fixed annuity with a living benefit income rider, that question?
I was just looking to see if anyone had a similar product in NY because I know there aren't any EIA's in NY that have the lifetime income rider
I was just looking to see if anyone had a similar product in NY because I know there aren't any EIA's in NY that have the lifetime income rider
- 4,132
Well JOE?
post one that have a lifetime income rider
post two with a living benefit income rider
So do you have two different concepts here?
The first which I replied to sounds simply like the distribution phase where an annuity switches from accumulation to distribution.
Your second post, you change what you're asking for and now it sounds like it is part of a long term care rider.
What exactly, are you looking for? What does this rider do? Does it have two names or is it entirely possible you mis-posted in your first one?
Although in either case you could switch an annuity to distribution and have a stream of payouts to do anything with the money.
Is the rider you're talking about more to do with a long term care need?
And sorry I replied to what you posted, not what you were thinking.
post one that have a lifetime income rider
post two with a living benefit income rider
So do you have two different concepts here?
The first which I replied to sounds simply like the distribution phase where an annuity switches from accumulation to distribution.
Your second post, you change what you're asking for and now it sounds like it is part of a long term care rider.
What exactly, are you looking for? What does this rider do? Does it have two names or is it entirely possible you mis-posted in your first one?
Although in either case you could switch an annuity to distribution and have a stream of payouts to do anything with the money.
Is the rider you're talking about more to do with a long term care need?
And sorry I replied to what you posted, not what you were thinking.
- 10,326
Because a Lifetime Income Rider is different than Annuitization.
Annuitization is based on whatever the growth in the account happens to end up at. It also takes away any access to the Account Value (no liquidity). It also does not guarantee what the payout rate will be. It also can not be stopped if the client wishes to stop the income stream and go back to the growth phase.
An Income Rider guarantees the growth rate for the income value and guarantees the payout rate once that income is turned on. It also allows you to keep liquid access to the Account Value while it is being drawn down via income payments. You can also stop the income whenever you would like with most products. Then there are also products that will double the income stream for LTC needs.
So there are some very distinct advantages to using an Income Rider vs. traditional Annuitization.
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He is asking about an Income Rider (which is a type of living benefit).
He referenced AEs Income Rider which also includes enhanced payments for LTC. However, it is still an Income Rider. (again an Income Rider is different than annuitization)
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I know that LFG and NWL are basically the two main IA companies in NY. Im not sure if the Rider is approved for NY. Ask Tahoe Ray, he does business in NY.
- 4,132
have to go back and brush up.
Quick question if this rider is guaranteeing a future payout level during the accumulation phase, what kind of premium is required to fund it? You can ballpark. thanks.
Quick question if this rider is guaranteeing a future payout level during the accumulation phase, what kind of premium is required to fund it? You can ballpark. thanks.
- 10,326
The Rider costs a set % per year that is deducted from the Account Value. It depends on the company but ranges from 0.30%-1.20% generally speaking.
It guarantees a rollup % (growth rate for the income calculation), then it guarantees a payout %. So the income payout is based on the deposit amount and the year you begin income...
Example:
If you deposited $100k, and it grew at 10% simple for 5 years (age 65), you would have $150k. Then based on your age of 65 the payout rate might be around 5.5%. So you would receive $8,250/y in income.
That $8,250 per year would be deducted from your Account Value. You would keep access to your account value until it is exhausted by the income payments. (but the income payments last for life)
There are very few index annuity options in NY, let alone ones with riders. F&G, Lincoln, and AIG are really the only options and most are pretty bad (although the AIG product has a 5.2% ann P2P which in NY is great).
US Life (AIG subsidiary) used to have the Global 8 which had an "Allianz" style rider (lifetime income off of account value) but I believe that it was discontinued. It might be worth a phone call depending on what you're looking for but in general it is still weak and probably not worth further investigation (their non-NY product can be pretty strong though).
I do quite a bit of my production in NY but lately "annuityland" (specifically fixed) has been pretty barren and does not look to be improving anytime soon.
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That would be a good idea...these products have really changed A LOT in the last 5-10 years. I came into the business in 1998 when annuities (specifically variable) were essentially tax deferral strategies (with a few exceptions that had GMIBs) but between then and now, annuities in general (variable, index, etc.) have changed several times over and become a very viable retirement planning tool.
You're probably sitting on a lot of opportunity.
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