Income Consider these options from a product designed to provide guaranteed income distribution.
As your clients retire or near retirement, their goals will switch from accumulating retirement assets to providing a predictable, lasting retirement income. One of the key concerns your clients will have at this stage is “will my money last?”
Distributing Retirement Income
Because a no load variable annuity is designed for retirement income savings and distribution, it provides a variety of options for providing income, including options that help provide a reassuring solution to a key objective: guaranteed lifetime income. This guaranteed income is based on the claims-paying ability of the insurance company. That is why it is critical to trust your clients’ retirement assets to financially strong and stable insurance companies. Guarantees do not apply to the performance of the underlying investment options available with this product. Carefully consider each of the options for providing retirement income. Each has its own advantages and disadvantages. The Ameritas salaried professionals can provide unbiased assistance in deciding which payout might make the most sense for your clients. Withdrawals—Your clients can simply withdraw money from their annuity. They can arrange for automatic withdrawals to be distributed on a regular basis. The advantage of this option is that your clients remain in complete control of their annuity. But there is no guarantee your clients’ assets will last a lifetime.
Guaranteed Lifetime Withdrawal Benefit (GLWB)— This rider is available on the Ameritas No-Load Variable Annuity (Form 6150) for an additional charge. It can give your clients guaranteed retirement income for life without giving up control of their retirement assets. Unlike some lifetime benefit features, there are no investment restrictions, other than those in the base policy, and no charge for this rider until and unless it is activated. With the GLWB, the Ameritas No-Load Variable Annuity will help you stay competitive in today’s evolving marketplace. The GLWB includes the “most in-demand” features you may have heard about: • The flexibility for you and your client to decide when to activate the rider and there’s no charge until you do. • Flexible withdrawal access during accumulation and withdrawal phases • Age banded withdrawal factors – from 4.00% to 7.00% • A lifetime withdrawal amount that can increase based on potential account value growth or additional deposits – even after withdrawals begin. Remember, all of this is available on one of the lowest cost no load variable annuities in the market. Annuitization—With this option, clients give control of their annuity investments to the insurance company and convert it to a regular stream of income. The following chart gives you an idea of some of the annuitization options that are available. Once again, it is important to remember that all retirement income guarantees are based on the ability of the insurance company to continue income payments. So be sure to trust your clients’ assets to a company you can count on.
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