He needs to call his agent and meet with him to go over things.
A GMWB is Guaranteed Minimum Withdrawal Benefit.
This means that he will be able to take a certain amount of yearly income from his contract.
The amount is based on the initial investment growing at a specified interest rate; then when you choose to take income you receive a specified withdrawal % (based on age) for the rest of your life.
This is an alternative option that he has in lieu of taking traditional withdrawals which are not guaranteed.
The Reset/Termination means that the period they credit the interest rate it grows at, has ended.
Im not the most familiar with Met VAs, but industry standard for this time period is 10 years with the option of an additional 10 years.
Since his GMWB accumulation period has ended, he has a choice of "resetting" it for another period, or he can just let it stop and any GMWB income would be based upon the amount it stopped at.
Since he is not retiring until later this year, it is almost certain he should renew it. But he should speak to his agent about it for advice more specific to his situation.
He needs to call his agent and meet with him to go over things.
A GMWB is Guaranteed Minimum Withdrawal Benefit.
This means that he will be able to take a certain amount of yearly income from his contract.
The amount is based on the initial investment growing at a specified interest rate; then when you choose to take income you receive a specified withdrawal % (based on age) for the rest of your life.
This is an alternative option that he has in lieu of taking traditional withdrawals which are not guaranteed.
The Reset/Termination means that the period they credit the interest rate it grows at, has ended.
Im not the most familiar with Met VAs, but industry standard for this time period is 10 years with the option of an additional 10 years.
Since his GMWB accumulation period has ended, he has a choice of "resetting" it for another period, or he can just let it stop and any GMWB income would be based upon the amount it stopped at.
Since he is not retiring until later this year, it is almost certain he should renew it. But he should speak to his agent about it for advice more specific to his situation.
This has been very helpful. I understand the reset and the credit period now.
It's a bit funny, my dad doesn't have an agent. He worked for METLIFE for over 20 years, and this was part of his pension and retirement benefits. He forgot about his VA benefit package, and received the letter. He had no idea what this was and where it came from. All the season agents he worked with are gone, either moved away or retired. He actually called METLIFE a few times talking to a few people and no one could explain it to him.
My dad doesn't know what VA and those riders are because he only focused on one product and he did very well with that one product. He call tell you the ins and outs and most of the riders back then regarding whole life, life98. But if you asked him about annuities and others he will refer you to another agent and tell them he only specializes in whole life.
He doesn't have the contract or any paper work but he just knows now he got money in there lol. I will call met life and try to confirm the details of the optional reset and advise him of what this is.
