An insurer is changing one of the guaranteed minimum withdrawal benefit riders it offers to purchasers of variable annuities.
Guardian Life Insurance Company of America, New York, says will be updating the Lifetime Focus GMWB rider it sells with variable annuities issued through its Guardian Insurance & Annuity Company unit.
Changes include an increase in the minimum to "guaranteed withdrawal balance" to 6%, from 5%, for rider owners who do not take withdrawals during a contract year; availability of the withdrawal amount at age 60, rather than age 65, in the rider version aimed at a single covered life, and at age 62, rather than 65, in the version aimed at married couples; an increase in the maximum benefit provided by the GMWB minimum guarantee roll-up to 200% of the total premiums paid before the first withdrawal, from 175%.
The annual cost of Lifetime Focus rider is 0.65% (maximum 1.25%) for the single version, and 0.85% (maximum 1.25%) for the spousal version, of the adjusted guaranteed withdrawal balance, Guardian says.
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
