Guaranteed Lifetime Income Rider


Get a Paycheck for Life

Blog-pic-Can-you-defend-your-PaycheckThe questions everyone must face are: “Am I saving enough to live 30 years in retirement? Is there a possibility that I may outlive my money?” If you are not sure, we may have a solution for you.

Benjamin Franklin once said, “In this world nothing can be certain, except death and taxes.” Today, there is one more guarantee, our company’s Guaranteed Lifetime Income Rider. Combined with an indexed annuity, the Guaranteed Lifetime Income Rider can provide a paycheck for life.

The Guaranteed Lifetime Income Rider is an optional benefit that may be added to your annuity policy at issue for a nominal annual fee. The Guaranteed Lifetime Income Rider can provide the annuitant with a Guaranteed Withdrawal Payment from his or her annuity that will last a lifetime…income that cannot be outlived! Through the use of the rider’s formula, we determine the Guaranteed Withdrawal Payment from the annuity when the policy owner decides to elect the guaranteed income benefit.

The rider provides a guaranteed stream of income from the annuity for life, even if the policy’s accumulation value reaches $0. The guaranteed lifetime income payments will continue until the death of the annuity owner. If the owner dies before the policy’s accumulation value is depleted, there are two options:

  1. The spouse can continue to receive the Guaranteed Withdrawal Payments until the policy’s accumulation value is depleted.
  2. The spouse or beneficiary can receive any remaining accumulation value in a lump sum or in a series of payments.

The minimum issue age for the rider is age 35 for 403(b) and 457(b) policies and age 40 for all other plan types. When you are ready to retire, the rider allows you to take lifetime payments from your annuity in the form of a guaranteed withdrawal payment, even if the policy’s accumulation value goes to zero provided:

  • The policy has been in force for at least one year,
  • You are at least age 55 for 403(b) and 457(b) policies or you are at least age 60 for all other plan types,
  • All policy loans, if any, have been repaid, and
  • A withdrawal is permitted from the annuity under applicable law and regulation.

The GLIR is an optional benefit for which premium is charged. It is not available in all states. Annuity contracts are subject to surrender charges during the early years of the contract and a 10% federal tax penalty may be assessed on withdrawals taken before age 591/2.