Financial Security
Take Control of Your Financial Security With Lifetime Income Riders
Take control of your financial security by creating your own personal pension plan with a Guaranteed Lifetime Income Rider. This is an optional rider that can be added to most Fixed Indexed Annuities and some Traditional Fixed Annuities. The Income Rider value grows at a specified rate, separate from the annuity value. The rider will continue to grow for a specific period of time or until activated, and the value serves as a basis for the income calculation. Once activated, the rider will provide a lifetime payment, guaranteed. The annuity account value will continue to grow, and income payments are subtracted from the annuity value like a withdrawal. If the annuity value is depleted, the Income Rider payments will continue for life.
Income Rider Example
Example Scenario
- A person age 55 invests $100,000 into a Fixed Annuity with an 8% Premium Bonus.
- An Income Rider is added, growing at a 6.5% compounding interest rate. The rider value will grow to $202,730 over 10 years.
- If the Income Rider is activated after 10 years at age 65, based on a 5% withdrawal percentage, it will pay $10,136 each year, guaranteed for life.
- Compare this to an alternate investment growing at an estimated 3% compounded rate—by taking the same withdrawal at age 65, the money will run out at age 80.