Indexed annuity designer Annexus has done it again, this time partnering up with Nationwide to develop a new lifetime withdrawal feature. Consumers now have the option of combining the new feature, the Nationwide High Point 365 Lifetime Income Benefit rider, exclusively with the company’s New Heights indexed annuities.
According to a recent article from ThinkAdvisor, the rider “guarantees that the amount used to calculate future income will be at least 110% of the purchase payment plus 7% compound annual growth for up to 10 years.”
Nationwide says that another feature “automatically locks in every daily high point of the accumulation strategy, providing an opportunity for continued income growth after 10 years.”
According to the Nationwide website, the rider was designed to offer:
- The opportunity for growth potential, even after lifetime income payments have started
- The greater of (1) a daily step-up feature on the income benefit base that captures the highest daily balanced allocation value or 1% compound interest annual roll-up on your purchase payment for 10 years or until the first lifetime withdrawal, whichever comes first
- Competitive payout percentages that increase the longer you wait to take lifetime income
- A joint option for continuation of income to the spouse. [Note: If joint option is elected, the lifetime payout percentage is lower.]
Co-founder of Annexus, Don Dady, stated that the new feature creates a rider that can offer the same accumulation strategies that the base product offers without limiting the client’s accumulation potential.
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Written by Rachel Summit