What is a Guaranteed Lifetime Income Rider (GLIR)? This rider guarantees that the annuity owner will receive an annual payment (a guaranteed withdrawal payment) for life, even if the policy’s accumulation value drops during the life of the annuity.
The Guaranteed Lifetime Income Rider was first made available to Variable Annuities, and it has become a “must have” add-on for most index annuity products. The GLIR is growing at an incredible rate at the number of applications Life Insurance companies are receiving.
For example: Life Insurance Company Southwest (LSW) has received an astounding increase regarding the rider for its deferred indexed annuity. The company reported receiving 270 Guaranteed Lifetime Income Annuity applications in a single day back in February of 2008. The average number of applications the company usually receives per day is anywhere from 100 to 150.
Why is this? And more importantly how does the Guaranteed Lifetime Income Rider work? One attractive advantage of this rider is that agents can present a dollar amount for the guaranteed payout for life. We as agents don’t have to speculate your income. We can give you guaranteed numbers that will never go down or go away. Real Lifetime Income!
To calculate the guaranteed withdrawal payment, many agents will multiply a guaranteed withdrawal percentage by the income account. The income account has a guaranteed interest rate for a specific time period. An example of this is a 7.2% roll-up rate guaranteed for 20 years.
We find that the guaranteed withdrawal percentage is based on the age the client wants to begin receiving payments. For example, if the guaranteed withdrawal percentage is 5% at age 60, yet increases by 0.10% each year, the guaranteed withdrawal percentage will be 8% by age 90.
For you couples, here is another example: a married couple can purchase a single premium deferred indexed annuity, with a Joint Lifetime income for $400,000 at age 55.
At age 65 they would receive to an income of approximately $40K each year. This income would be guaranteed for life even if the contract’s value decreases to zero over time due to the number of income payments. Although, if they decide to receive income payments starting at age 70, their annual guaranteed lifetime income would be roughly $62K.
So I do hope this helps you understand the value that this rider holds to many existing clients. Please feel free to call or email me with any questions regarding annuities and income riders. I will be happy to help you. If you are interested in getting annuity quotes for yourself I do have a new form you can fill out and I will send you competitive quotes within 48 hours. Annuity Quote Request Form You can also get more information at this website www.LifetimeIncomeRider.com
HI I am 55 yrs old.Can u send me more info on this.I have about $200000 in stocks and bonds.