Delaware Life Adds Variable Annuity With Optional Benefits Guarantee Rider
November 6, 2018 by Allison Bell
Delaware Life Insurance Company has introduced an individual deferred variable annuity contract that offers an optional guaranteed lifetime withdrawal benefit (GLWB) rider.
The Waltham, Massachusetts-based company says it will distribute the new Delaware Life Masters Prime Variable Annuity contract through the bank and broker-dealer channels.
A copy of the GLWB rider filed with Delaware insurance regulators shows an investment menu that includes options from a wide range of managers, including American Funds, BlackRock, Goldman Sachs, Invesco, JPMorgan, MFS, Morgan Stanley, PIMCO and Putnam.
A client can use a built-in death benefit feature or choose between two alternative death benefit riders.
John and Jane Doe’s Annuity
Delaware Life put a sample GLWB rider form, for John and Jane Doe, in its regulatory filings. The sample filing shows the fictional couple getting a bonus rate of 5.5%, paying a rider fee rate of 0.3% for the GLWB rider, and having a maximum withdrawal benefit base of $5 million.
The original rider fee rate of 0.3% is guaranteed for the life of the rider unless the Does elect a step-up, according to the filing. In the filing, Delaware Life states that the rider fee rate will never exceed 0.4875%.
The filing shows maximum lifetime withdrawal percentages ranging from 3.5% to 6.5% for a single life, and 2.5% to 5.5% for a joint-life arrangement.
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