Toll Free: 800-373-9697
Email: jeff@retirementdepot.com

Fixed indexed annuities now offer a Guaranteed Minimum Withdrawal Benefits (GMWB). GMWB is a rider that can be added to a fixed indexed annuity for individuals who want the security of a guaranteed income at retirement, without a lifetime commitment today. The GMWB is simply a way for an individual to guarantee themselves an income for life at a future date. There is a cost to this rider and it is automatically withdrawn, penalty-free, from the Accumulation Value on each contract anniversary.

Below is a sample income illustration based on a 55 year old with $100,000 of premium.

Income Account: 10% Premium Bonus Plus Bonus Credit Percentage @ 6.50% Guaranteed for up to 20 years
 

STATE VARIATIONS
Not all products are approved in every state. Check with us for state availabilities.

TRANSFERS
Consider a fixed annuity if you want to transfer or rollover other older retirement accounts. We assist in rolling over old 401K or other employer plans. Tax free exchanges for existing annuities via a 1035 exchange.

SUITABILITY REVIEW
Is an annuity right for you? Annuities should be viewed as long-term financial instruments. Some companies waive the withdrawal charge in the event of nursing home, premature death or annuitization on many of their fixed annuity products. Please be aware that withdrawal charge periods may last from 1-10 years. These features will be clearly disclosed.

GMWB riders are available on fixed indexed annuities.

The three basic types we offer and their benefit:

• 5.50% Increasing benefit value for life
• 10.00% Increasing benefit value for up to 10 years
• 6.50% Increasing benefit value for up to 20 years - Illustrated above

The fixed indexed annuity and the guaranteed income riders have many part that should be review carefully to find the best fit for your situation. 
 

Q. Is there a cost associated with this optional rider?
A. Yes, the cost of rider will vary by the Bonus Credit Option selected. This cost is calculated by multiplying the charge percentage (GMWB Charge) by the current GMWB Value. This amount is then subtracted from your annuity's Accumulation Value each year on contract anniversary. A cost is still applied even if the contact earns zero index or Interest Credits.

Q. Is the Rider Cost guaranteed for the life of the contract?
A. The cost is guaranteed, unless Bonus Credit Option Two is chosen and you elect to extend your Bonus Credit Percentage. In that instance, we may change your charge percentage beginning in the eleventh contract year and that cost will stay the same from that point forward. This charge percentage will never be more than 1.5% after you elect to extend your Bonus Credit Percentage.

If you don't request to extend your Bonus Credit Percentage, the initial rider cost will stay the same and be applied each year until the rider is terminated.

Q. When is the Rider Cost applied?
A. Every contract year; even if the contract earns zero index or Interest Credits, in years when there are no GMWB Step-Ups, in years in which a withdrawal is taken and continuing on when you elect and begin taking lifetime income payments. The Rider Cost is applied every year until the Rider terminates.

Q. Is the Bonus Credit included in the Accumulation Value and available for withdrawal or surrender?
A. No, the Bonus Credit is only credited to the GMWB Value and is therefore not part of the Accumulation Value or cash surrender value.

Q. Can the Bonus Credit or GMWB Value be paid out as a Death Benefit to my named beneficiary?
A. No, since the Bonus Credit is only credited to the GMWB Value. This value is used to determine your lifetime income payment amount only. It will not be paid out as a Death Benefit to your beneficiary.

Q. In years when a withdrawal is taken, would a Bonus Credit still apply?
A. In most instances no, since Bonus Credits are only available until you begin taking income payments or elect to receive lifetime income from the rider. However, if the withdrawal satisfies a Required Minimum Distribution (RMD), the Bonus Credit would still be credited to your GMWB Value.

Q. How is the lifetime income payment calculated?
A. At the time you elect to receive income from the Rider, your Lifetime Payment Amount is calculated by multiplying your Lifetime Payment Percentage (determined by your attained age) times your current GMWB?Value.

Q. Can additional premium be added to a contract after income payments have been started?
A. Yes, the additional premium would be added to your GMWB Value and your annuity's Accumulation Value. Your LPA may increase at the time the additional premium is received.

Q. Can a spouse continue Income Pay after the death of the owner?
A. Yes, if the surviving spouse is the sole beneficiary and he or she decides to use a spousal continuance to keep the contract in force.

If the spousal continuance occurs after you elect to receive lifetime income payments, the current income payment amount will continue until the earlier of the surviving spouse's death or the GMWB Value is reduced to zero.

If the spousal continuance occurs before you elect to receive lifetime income payments, income payments will be calculated based on the Lifetime Payment Election Date chosen by the surviving spouse. Income payments will be paid until the earlier of the surviving spouse's death or the GMWB Value is reduced to zero.

Q. When can I begin taking lifetime income payments?
A. lifetime income payments can begin after the first contract year once you reach age 50. You must notify us in writing to establish your Lifetime Payment Election Date.

Q. Is the Accumulation Value calculated the same as the GMWB Value?
A. The following illustrates how the two values are calculated.
 

1. We will UPS/FedEx all paperwork with a pre-paid return overnight envelope.
2. Information provided by you on the application kit will begin the process of issuing a contract.
3. Our insurance experts will help fill out the application kit and suitability form as answers must be complete and detailed.