Clients biggest concerns? Outliving their income.
The old adage “Are you concerned about the return “ON” your money or the return “OF” your money. Annuities have allowed your clients to preserve their funds but your client would lose control of their money once they chose to annuitize and receive an income stream. Income riders turn the tables on this idea.
One of the best benefits to the current Fixed Annuity offerings is the ability to add an Income Rider. By definition, an annuity income rider is an attached benefit to a deferred annuity policy providing a lifetime income stream. Income riders typically have a guaranteed growth rate that can be used for income in the future, and can be flexible from a planning standpoint for your client. One of the great features of income riders is that unlike the traditional approach of “annuitizing” the annuity, which while providing lifetime guaranteed income, also takes away access to the principal. Income riders give both control and flexibility in that you can access the lump sum or principal for funds if the need ever arises. Another strong feature of income riders is that you can stop and start income riders if circumstances were to change.
When you speak with us be sure to ask about Income Riders. Sometimes this feature will add just the right amount of guaranteed security your client is looking for. Illustrations we provide will show a column that indicates what the income rate will be either annually or monthly. The Income Riders “Guaranteed Income” is it’s own distinct accumulation bucket in an illustration. The growth of the “Guaranteed Income” column will be labeled by whatever term each company uses but the totals in the income “bucket’ are available only if taken as income, the lump sum available is in the surrender value column.
Give us a call or email for a quote today. Shields Brokerage will be discussing Income Riders in detail on our monthly annuity conference call 11/10/2016 at 10 AM co-hosted by North American Companies. Join us by registering online at: