Annuities With Guaranteed Lifetime Income Riders
- designed for investors seeking guaranteed retirement income, while retaining control of invested principal, and the ability to leave remaining funds to their beneficiaries upon death
- riders guarantee that the contract owner can withdraw a specified amount from the contract each year for life, even if the contract value declines or is completely depleted
- most annuities offer single or joint lifetime income riders
- a fee is charged against the contract value each year for the lifetime income rider
- guaranteed lifetime income riders may be offered on fixed, indexed, or variable deferred annuities
- surrender charges and/or market value adjustments may apply to withdrawals for a specified number of years after contract issue
- annuity contracts usually allow a portion of the contract value (typically 5%-10%) to be withdrawn each year, without surrender charges
- annuities are issued by life insurance companies, and are not guaranteed by FDIC insurance. Annuity guaranteed values are backed by the claims-paying capacity of the issuing insurer (click here for links to information about insurer safety).
- state insurance guarantee associations may provide protection in the event that an individual insurer is unable to fully honor their contractual obligations to an annuitant (click here for more information).
- annuity contracts usually allow a portion of the contract value (typically 5%-10%) to be withdrawn each year, without surrender charges
