Nationwide Financial’s IncomeInsight variable annuity was built for advisors looking to use guaranteed minimum withdrawal benefits with their variable annuities. A company press release on Insurance News Net entitled “IncomeInsight Helping Advisors Strengthen Retirement Income Portfolios” gives more information on Nationwide’s variable annuities. Confidence in financial security during retirement is at its lowest level in over two decades, and Nationwide believes that they have the products to help advisors make their clients more financially secure into the future. Variable annuities with GMWBs give the potential for a larger increase in retirement income and decrease income risk at the same time. Some advisors also sell fixed equity indexed annuities because they have similar double benefits of the potential for increase with some risk protection as well.
At Nationwide, sales of variable annuities increased 32% from 2009 to 2010, due in part to increasing options of variable annuities with GMWBs. They have an online tool available for advisors to interact with that helps the advisors determine if a variable annuity with a GMWB like Nationwide’s IncomeInsight will work for their clients’ retirement portfolios. If it is determined that the products will work for a particular client, the online tool gives an amount that it recommends be invested as well as an asset allocation strategy. The tool could compare equity linked CDs with variable annuities and other investments to see what might work best for each advisor’s individual clients. While a GMWB carries a fee when added to variable annuities, the guarantees and risk protection that come with it are worthwhile for many investors.