The rider, available with most Transamerica variable annuities, changes to the optional
living benefit include increasing the compounding growth rate to an industry leading 7.
In an attempt to further reduce the risk of a
living benefit, most insurance companies have introduced -- and often require -- volatility-managed investment options.
Recent LIMRA Secure Retirement Institute studies shows interesting differences in buyers of variable annuities with a guaranteed
living benefit (GLB) rider than without the guaranteed
living benefit.
However, as much as the guaranteed
living benefit (GLB) story may still resonate with VA buyers, the bulk of today's optional income and withdrawal guarantees come with higher fees, tighter investment restrictions and greater complexity relative to the GLB riders of years past, factors that appear to be curbing GLB sales.
The
living benefit evolution continued through the 2000s, until the 2008 market crisis.
LINCOLN FINANCIAL GROUP announced with its third-quarter earnings that is has entered into a $4 billion reinsurance treaty covering new sales of its variable annuity guaranteed
living benefit product.
Further, a term policy with a
living benefit rider can help mitigate the need for a plethora of other products that may be unaffordable for a particular insured person, such as disability insurance, critical illness coverage and long-term care insurance.
1 Boomer Market Advisor: There was significant concern about the over-extension of the annuity industry with their
living benefit offerings.
The guaranteed minimum withdrawal benefit (GMWB) is a variable annuity
living benefit that allows the contract owner to retain control.
The additional expenses of these
living benefit riders are costs only if they do not provide quantifiable future value.
By viewing a life insurance policy as a current asset, the insured can now access funds - the death benefits - virtually immediately as a
living benefit.
3 on BE's top 15 black-owned insurance companies list) offers a
Living Benefit Rider, also known as an Accelerated Benefit Rider.
