Variable annuities have not been getting a lot of positive attention recently. Between the companies who have stopped selling variable annuity products altogether to the others who have dropped lifetime income guarantees and other features, it’s been a tough go for the variable annuity industry. Declining variable annuity sales have hurt overall annuity sales totals as well. But Nationwide remains committed to the variable annuity industry. They have increased the payout on two different variable annuity lifetime income riders. The company is focused on helping their customers meet retirement income needs and remaining a staunch supporter of variable annuities.
This information comes from company press release “Going up again: Nationwide announces payout increase to two lifetime income riders.” This is actually the second increase that Nationwide has announced in just the last six months. The Nationwide Lifetime Income Rider and Nationwide Lifetime Income Capture both increased by 10 basis points as of the first of this month. These living benefit riders are available on all new variable annuity contracts. Just last August, the company increased the payouts on these two riders by 15 basis points. They also divided the 65-80 pay band into two groups by adding a new pay band for ages 75-80.
Nationwide’s senior vice president of life insurance and annuities said that the company has no plans to break away from variable annuity products even though many others in the business have completely changed their business models. Nationwide’s variable annuities are one of the key products in the company’s strong and diverse portfolio. They know that their customers are looking for lifetime income riders to meet their retirement planning needs, so Nationwide remains committed to not only retaining but also improving their variable annuity riders. They offer some of the highest lifetime income payouts available, payouts that won’t decrease even if the contract value is depleted. The Nationwide Lifetime Income Rider is for people close to retirement who need a source of guaranteed retirement income. The Lifetime Income Capture rider is for people who have a longer time frame before they need to start receiving income. This allows for potential market increases and therefore higher income payouts in the future.
The variable annuity industry has undergone a lot of changes over the past few years. Although many of these changes were not to the benefit of consumers, Nationwide has maintained a customer focus and continues to improve upon their variable annuity products and riders. For the second time in six months, Nationwide has increased the payout on two variable annuity lifetime income riders. If you have any questions about variable annuities or lifetime income riders, speak with an expert at Annuity FYI.
Written by Rachel Summit