One of the concerns many retirees have with this annuity product is how their asset or income stream will pass to their named beneficiaries. To address this concern, many annuities offer an optional death benefit rider. This rider provides the option for a return of premium of the remaining ...
A Single Premium Immediate Annuity (sometimes referred to as an "SPIA") may be the right annuity for you if you are looking for payments that begin right away and continue for the rest of your life or for a specified period of time. The annuity is purchased from an insurance company ...
In general, the payout depends on the length of the annuity. A period-certain annuity, which is limited in duration, will typically have a higher payout per month, quarter, or year than alife annuity, or an annuity with ariderthat outlined adeath benefitfor a beneficiary or beneficiaries. ...
Cap. Many put a cap on the returns. For example, if the index returned 10% but the annuity had a cap of 5%, your account receives a maximum return of 5%. Participation rate. This is the percentage of the index's return the insurance company credits to th...
Riders are additional protections attached to an annuity contract. Living riders benefit the annuity holder while the owner is alive, and a death benefit rider protects the benefits of the annuity holder after death. Here’s an example of a living rider: Instead of providing income after a cert...
Other riders can be purchased to add a death benefit to the agreement or to accelerate payouts if the annuity holder is diagnosed with a terminal illness. A cost-of-living rider will adjust the annual base cash flows forinflationto correspond with changes in theconsu...
Extra charges for riders and options you add to your annuity Advantages of Annuities Here are some of the benefits of agreeing to an annuities contract. Note that not every advantage is available with every kind of annuity: Guaranteed rate of return.Fixed annuities offer you a set amount of ...
A fixed index annuity can go up or down in value depending on the performance of the index it’s tied to, but there may be a guaranteed interest rate to reduce risk. Potential costs include surrender charges if you withdraw your money before the annuity’s term ends, tax penalties if yo...
The AssetShield series helps people grow retirement dollars on their own timeline with 5-, 7- and 10-year surrender charge schedules, and a performance rate rider that can boost accumulation, for a fee. FlexShield 10™ FlexShield 10 lets you opt into higher growth potential in exchange for...
Annuity rider fees:Fees for riders such as extended death benefits and guaranteed income can vary wildly, but average between .75% to 2% of the total annuity value. Loads and acquisition expenses:Some variable annuities have a front-end or a back-end load that can affect the overall performan...