We wrote about Securian’s Ovation Lifetime Income guaranteed living withdrawal benefit when it was introduced and now the company has a new rider to unveil. In a MarketWatch press release, Securian introduces the Ovation Lifetime Income II GLWB with some new features to add to the first product. This rider can be added to many of Securian’s MultiOption variable annuities. Securian added features to their original Ovation rider after customer feedback and a change in the markets. This new rider guarantees annual annuity contract withdrawals, up to a limit, starting on the anniversary after you turn 59.
Minnesota Life Insurance Company issues Securian’s annuity products, including the new Ovation II rider. There are many benefits being promoted by Securian with this new variable annuity option. The compound benefit base enhancement is 6%, one of the highest for a product of its kind. If you haven’t yet taken withdrawals after either 10 years or age 70, the benefit base is guaranteed to double. You are able to choose your own investments, with approval, through their CustomChoice allocation. This new product offers some withdrawal flexibility, so that you don’t lose the 6% benefit base enhancement. In the year that you take an early withdrawal you won’t get the benefit enhancement, but you will get the 6% in years where you do not take a withdrawal instead of losing the benefit altogether if you ever take a withdrawal.
There are many more investment options with Minnesota Life, most of which include hedging to protect against market downturns. You may not have as large of gains with hedging, but with the 75 underlying options and 17 fund families, you will find an investment mix that is right for your risk tolerance. Securian’s new Ovation Lifetime Income II rider costs 1.20% of the contract value or benefit base value, whichever is higher. There is a lot to consider when looking at variable annuities and this new Ovation II rider. Look into all of the features and benefits as well as any limitations there may be in regards to your entire financial plan.
Written by Rachel Summit
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