Income Now FIA?

[iceco1d]

Why do you say that riders on FIAs do not decrease account value?

 

[Norwayguy]

Because most of the ones I use are really just a spread on the interest and if the index returns a zero the rider charge is waived.

 

[nathan.lee]

Because most of the ones I use are really just a spread on the interest and if the index returns a zero the rider charge is waived.

The key to that statement is "most of the ones I use."

A very large percentage of FIA riders (income, enhanced income, death benefit) that carry a fee are based on the benefit base and subtracted from the contract value regardless of the interest credited to the contract value.

And yes, that means that an FIA held for the full surrender period could lose value if a rider is attached.

 

[iceco1d]

The key to that statement is "most of the ones I use."

A very large percentage of FIA riders (income, enhanced income, death benefit) that carry a fee are based on the benefit base and subtracted from the contract value regardless of the interest credited to the contract value.

And yes, that means that an FIA held for the full surrender period could lose value if a rider is attached.

That's how the ones I've used have worked.

Norway...what products waive the fee (if you don't mind sharing?).

 

[scagnt83]

That's how the ones I've used have worked.

Norway...what products waive the fee (if you don't mind sharing?).

Annexus/Aviva and ING do. There are one or two others I think.

LFG allows for first year income (income now) if they are over 50.

I attached a spec sheet.

 

[indexedannuity_girl]

Since the fee on most FIAs are at worst a spread and do not decrease account value this seems like just a VA thing.

That is not true at all. There are less than five GLWBs that do not charge in the event there is no gain. sjm

 

[Norwayguy]

That is not true at all. There are less than five GLWBs that do not charge in the event there is no gain. sjm

I will defer to you on this. I rarely write the riders these days and things do change.

But it wouldn't hurt since you have the spreadsheet to answer icecolds question by naming the carriers and riders that do.

 

[indexedannuity_girl]

I will defer to you on this. I rarely write the riders these days and things do change.

But it wouldn't hurt since you have the spreadsheet to answer icecolds question by naming the carriers and riders that do.

It is much easier/quicker to list the companies that have GLWBs which do not charge in the event there is no gain. Here they are:

- American National
- Aviva (Annexus products only)
- National Western Life
- United States Life/American General

sjm

 

[Norwayguy]

It is much easier/quicker to list the companies that have GLWBs which do not charge in the event there is no gain. Here they are:

- American National
- Aviva (Annexus products only)
- National Western Life
- United States Life/American General

sjm

That's what I meant and also why I believed what I did as I've sold three of the four over the past year.