In an effort to give financial advisors and their clients more investment flexibility, Brighthouse Financial Inc. has made some changes to its FlexChoice variable annuity living benefit rider. The update lets clients choose their own investment option asset allocations, according to a recent article from ThinkAdvisor. Previously, clients were required to allocate assets to risk-managed portfolios.
Myles Lambert, chief distribution and marketing officer at Brighthouse, said the company decided to make changes to the rider after talking to financial advisors.
“Financial advisors understand their clients’ unique income needs better than anyone, and we want to empower them to help that lifetime income grow,” Lambert said in a statement about the rider update.
Brighthouse Life Insurance Company is based out of Charlotte, North Carolina, where they issue the underlying variable annuity contracts that also offer FlexChoice Access, an optional living benefit rider. These products are available in most of the United States.
For purchasers who meet contract conditions, the contract issuer guarantees a minimum level of income in addition to more income if the investment options used do well. In addition to investment options, rider purchasers are able to decide when to begin withdrawing income and whether to set withdrawals higher early in retirement. The income stream can also be cancelled if the rider user no longer needs the money, and spousal coverage is available at no extra charge.
Written by Rachel Summit