Highest Withdrawal Rate Rider?

[MAnnuity]

What is the highest withdrawal rate out there right now on a living benefit rider (on a FIA or fixed annuity)? I saw an article referencing a 10% withdrawal rate, and am curious if this is a lifetime income benefit. Assume 50y/o at time of deposit, defer income for 20 years, 70y/o when income is started.

Thanks in advance!

 

[nathan.lee]

The Allianz 360 behaves this way.

50 yr. old at issue would have a 4.00% Single Payout Base.

Each additional year of deferral increases the payout percentage by .30%(assuming age 50 at issue)

20 years of deferral X .30% Single Payout percentage increase equals a 6% increase to the base payout of 4%.

Total Single Payout Percentage at age 70 = 10% Single Payout Percentage guaranteed for life

 

[0b1kanobee]

What about a rider on a 66 year old single?

I show Phoenix strong for the first 3 years then Great American's benefit starts to overtake it.

1) Is the Phoenix product the best for income during the first 3 years?

2) What product can beat Great Americans in this case from 36 months forward? I can't seem to find anything.

 

[nathan.lee]

I am finding the same information with regard to income during the first 36 months being highest with Phoenix(assuming the Personal Income Annuity?) and Great American being the highest from 36 months to 8 yrs of deferral. One thing to watch out for with both of these products is early withdrawals.

Phoenix - Early withdrawals stops roll-up but is RMD friendly

GA Income Sustainer - Early withdrawals and/or RMDs stops roll-up

GA Income Sustainer PLUS - Neither early withdrawals NOR RMDs stops roll-up

At 9 yrs. of deferral and beyond the newly updated North American Income Pay (option 2) has the greatest payout.

 

[0b1kanobee]

I am finding the same information with regard to income during the first 36 months being highest with Phoenix(assuming the Personal Income Annuity?) and Great American being the highest from 36 months to 8 yrs of deferral. One thing to watch out for with both of these products is early withdrawals.

Phoenix - Early withdrawals stops roll-up but is RMD friendly

GA Income Sustainer - Early withdrawals and/or RMDs stops roll-up

GA Income Sustainer PLUS - Neither early withdrawals NOR RMDs stops roll-up

At 9 yrs. of deferral and beyond the newly updated North American Income Pay (option 2) has the greatest payout.

My next question is, what is the closest product to Great American? I don't like that ROP hanging over my head.

 

[iceco1d]

AILIC has the same Income Sustainer Rider, but their contracts don't have a ROP feature.

 

[nathan.lee]

AILIC has the same Income Sustainer Rider, but their contracts don't have a ROP feature.

Ice,

For a "newbie" to the FIA world, you sure seem to be picking it up fast. Congrats on that and keep up the enthusiasm! It is nice to see a "securities guy" that is legitimately interested in learning this side of the business in an effort to help his clients.

 

[iceco1d]

Ice,

For a "newbie" to the FIA world, you sure seem to be picking it up fast. Congrats on that and keep up the enthusiasm! It is nice to see a "securities guy" that is legitimately interested in learning this side of the business in an effort to help his clients.

Thanks man. Familiar with FIAs, not familiar with insurance "lingo" if you will. You guys say "Street Level" and I say, "80% to the grid." You guys say "annuity production" to mean the premium taken in and I say "annuity production" to mean commissions generated. Etc., etc.

I'll catch on soon enough! Thank you for the kind words, and the patience with my many questions.