Prudential has made improvements to its optional Highest Daily Lifetime 7 Plus variable annuity rider, in addition to expanding its availability to investors 45 and older. According to the Retirement Income Reporter, the Highest Daily Lifetime 7 Plus option is a minimum income guarantee that locks in the highest daily value occuring during the annuity’s life. Until lifetime income starts, that value will grow by a 7% compound rate annually.
Another new feature of this product is that if no lifetime withdrawals are taken in 25 years, Prudential will use an income base that is 600% of the account value when calculating income. Of course, the fees of this optional benefit will depend on which of many Prudential’s annuities is purchased.