Some Income Riders offer a joint payment option, allowing your payments to continue as long as both you and your spouse are living. This feature can provide peace of mind that neither one of you will run out of money as long as you live. Income Rider features will vary by product so it is important to understand the benefits offered by the annuity contract you choose.
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, 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.
A person age 55 invests $100,000 into a Fixed Annuity with an 8% Premium Bonus.
Add an Income Rider growing at 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.