We would love to hear from you. Click on the ‘Contact Us’ link to the right and choose your favorite way to reach-out!

wscdsdc

media/speaking contact

Jamie Johnson

business contact

Victoria Peterson

Contact Us

855.ask.wink

Close [x]
pattern

Industry News

Categories

  • Industry Articles (21,155)
  • Industry Conferences (2)
  • Industry Job Openings (35)
  • Moore on the Market (414)
  • Negative Media (144)
  • Positive Media (73)
  • Sheryl's Articles (800)
  • Wink's Articles (353)
  • Wink's Inside Story (274)
  • Wink's Press Releases (123)
  • Blog Archives

  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017
  • May 2017
  • April 2017
  • March 2017
  • February 2017
  • January 2017
  • December 2016
  • November 2016
  • October 2016
  • September 2016
  • August 2016
  • July 2016
  • June 2016
  • May 2016
  • April 2016
  • March 2016
  • February 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015
  • September 2015
  • August 2015
  • July 2015
  • June 2015
  • May 2015
  • April 2015
  • March 2015
  • February 2015
  • January 2015
  • December 2014
  • November 2014
  • October 2014
  • September 2014
  • August 2014
  • July 2014
  • June 2014
  • May 2014
  • April 2014
  • March 2014
  • February 2014
  • January 2014
  • December 2013
  • November 2013
  • October 2013
  • September 2013
  • August 2013
  • July 2013
  • June 2013
  • May 2013
  • April 2013
  • March 2013
  • February 2013
  • January 2013
  • December 2012
  • November 2012
  • October 2012
  • September 2012
  • August 2012
  • July 2012
  • June 2012
  • May 2012
  • April 2012
  • March 2012
  • February 2012
  • January 2012
  • December 2011
  • November 2011
  • October 2011
  • September 2011
  • August 2011
  • July 2011
  • June 2011
  • May 2011
  • April 2011
  • March 2011
  • February 2011
  • January 2011
  • December 2010
  • November 2010
  • October 2010
  • September 2010
  • August 2010
  • July 2010
  • June 2010
  • May 2010
  • April 2010
  • March 2010
  • February 2010
  • January 2010
  • December 2009
  • November 2009
  • October 2009
  • August 2009
  • June 2009
  • May 2009
  • April 2009
  • March 2009
  • November 2008
  • September 2008
  • May 2008
  • February 2008
  • August 2006
  • Anatomy of a fixed annuity income rider, Pt. 1

    February 21, 2010 by Randy Timm

    By Randy Timm
    VP Product Marketing, CLU, ChFC, FLMI, Brokers International
    Featured Expert: Annuity Riders and Options

    The purpose of this article is to explain the difference between a fixed annuity’s accumulated value and an income rider’s income benefit base.

    *Note: Throughout this article, you will see the term income benefit base. This is the special value calculated within an annuity income rider that serves as the basis for future income payments.

    In just three and a half years, income riders have become one of the most popular benefits ever added to fixed annuities. Some carriers now report over 50 percent of people who purchase fixed annuities also elect to add this rider at the point of sale.

    In 2003 and 2004, the first guaranteed lifetime withdrawal benefit (GLWB) riders were introduced on variable annuity products. At that time, the biggest advantage of these riders, compared to earlier income riders, was that the income benefit base did not have to be annuitized. The same is true today on a fixed annuity with an income rider. A GLWB guarantees a certain amount of lifetime income, without relinquishing control of the principal.

    Adding a GLWB to a fixed annuity provides a third way to extract money from the annuity. The first way to extract money is to take normal withdrawals under the annuity contract, the second is to select annuitization, and the third is to use a GLWB to receive lifetime income without annuitizing the contract. A customer can add a GLWB rider to their annuity and never take income under the benefits of the rider. The rider simply provides additional options for their future retirement income needs.

    Now, I’ll address a fixed annuity’s accumulated value and an income rider’s income benefit base. Below is a T-chart that shows some of the differences between these two parts. The left side of the chart represents the accumulated value and the right side represents the income benefit base. Remember, the income benefit base is not cash and cannot exist without purchasing the underlying fixed annuity.

    Accumulated value Income benefit base
    This is the accumulated value of the underlying annuity. This special value serves as the basis for determining future lifetime withdrawal payments.
    – Interest is credited to this value – A roll-up rate is credited to this value
    – Basis for determining cash surrender value – Not the basis for determining cash surrender value
    – Basis for any lump sum death benefit – Not the basis for any lump sum death benefit
    – Basis for tracking interest taxed upon withdrawal – Not the basis for which indexed or fixed interest is credited
    – Basis if an annuitization option is later elected – Not the cash element
      – Cannot be withdrawn via lump-sum

    This article is not intended to give tax or legal advice and is for general educational purposes only. This article is for agent use only. Features and/or Riders may not be available in all states or with all insurance carriers and may vary from state to state. You are encouraged to seek independent legal and/or professional advice depending on your client’s individual circumstances.

    Originally Posted at ProducersWeb on November 24, 2010 by Randy Timm.

    Categories: Industry Articles
    currency