In the midst of market volatility and uncertain economic times, Ohio-based mutual insurer, Nationwide, has just announced the launch of three annuity lifetime income riders. According to a recent article from ThinkAdvisor, the company said “it can do this now because it’s a big, strong company.”
Most life insurers in the United States invest in corporate bonds and other fixed-income investments in order to generate the cash necessary to fund annuities. With interest rates continuing to fall and market volatility, many life insurers are suspending, or even ending, the sale of annuity products offering guaranteed benefits. But because Nationwide is self-proclaimed to be “one of the strongest, diversified, Fortune 100 insurance and financial services companies,” they feel confident in this latest launch.
The Nationwide Lifetime Income Rider+ Core rider offers guaranteed income for life with a maximum equity exposure of 60%.
The Nationwide Lifetime Income Rider+ Accelerated rider offers guaranteed income for life also. It allows purchasers to allocate up to 100% in equities, in exchange for accepting fluctuating retirement income.
The Nationwide Lifetime Income Rider+ Max rider is designed for purchasers who expect to need more income early on, while waiting for Social Security benefits payments or other income payments to start. Guaranteed income with 100% equity exposure is offered.
Nationwide will issue the annuities through its Nationwide Life Insurance Company unit. Income is calculated on a calendar year basis, and all guarantees and protections are subject to Nationwide Life’s claims paying ability.
Written by Rachel Summit