Income Riders are attachments you can purchase when signing up for a Fixed, Variable, or Equity Indexed Annuity. These riders have two particular guarantees that are important.
The first guarantee is the Roll-Up Rate. This is the interest rate that the insurance company will give you every year until you decide to exercise you income rider and begin drawing a lifetime income.
The income is truly for life. Even if the your account drained down to zero after years of payments and you ended up to be 112 years and still running marathons, your income check will continue to show up in your mail box. For that reason these riders are very attractive.
The second important guarantee that you should be aware of when looking at income riders is the Guaranteed Minimum Withdrawal Benefit. Companies can give this percentage as many confusing names as they want but this is what it all means. What percentage of my money do I get each year? This is an important question.
So our two questions are “How fast will they grow my annuity?” and “Once it has grown, how much do I get each year?” These are questions that can be answered by a report that my agency offers for free. Go to www.GuaranteedIncomeRider.com and Get My Free Report!
