COLUMBUS, Ohio, Aug. 13, 2018 /PRNewswire/ — Nationwide recently announced changes to its variable annuity lifetime income rider, Nationwide L.inc, that will increase pay outs for three age groups to help clients better achieve protected monthly income in retirement. Â
As of August 13, 2018, the company increased single life payout percentages for The Nationwide Lifetime Income RiderÂź (Nationwide L.inc) to the following:
The changes will help provide clients with one of the highest guaranteed lifetime income amounts in the industry1 that will not decrease, even if the contract value drops to zero2.
In June of this year Nationwide became one of the few providers to offer a 70 to 74 age band to its living benefit rider, which gives advisors more flexibility to design a retirement income plan based on their clients’ age and needs.
“Research3 from the The Society of Actuaries and LIMRA shows that around age 70 there is a significant increase in the number of people starting income from their annuity so our new age band and competitive payouts can help them achieve a higher income during retirement,” said Eric Henderson, Nationwide’s senior vice president of life insurance and annuities.
Visit nationwidefinancial.com/livingbenefits or call 1-800-321-6064 to learn more about Nationwide L.inc.
“We know people are living longer in retirement, sometimes decades, so reliable sources of protected income during those years remains a priority for advisors and their clients,” said Henderson. “In fact, a Nationwide Retirement Institute survey4 found more than one in two of those retired cited having enough money to last through retirement as a top concern, so we know they’re looking for help when it comes to protected monthly income that lasts for their lifetimes.”
Nationwide L.inc is the company’s established living benefit rider, built for investors at or near retirement who are seeking a guaranteed level of income. In addition to the new highly competitive payouts, when added to a Nationwide variable annuity L.inc also includes:
1 As of 6/1/18; statistics reported by VARDS on vards.com. This considers guaranteed income for life and excludes competitors that decrease income when the contract value reaches zero.
2 All guarantees are subject to rider terms and conditions. If clients take early, excess, or nonlifetime withdrawals, especially in a down market, loss of income is a possibility. Growth is to the income benefit base and not a cash value that can be withdrawn. Fees are assessed annually on the income benefit base. Maximum cost is 1.50% for Nationwide L.inc and 0.40% for Nationwide L.inc with the Joint Option.
3 Variable Annuity Guaranteed Living Benefits Utilization 2015 Experience Participants Report; A Joint Study Sponsored by The Society of Actuaries and LIMRA.
4 Health Care Costs in Retirement Survey, October 2016, Presented by Harris Poll
5 VARDS, vards.com (Feb. 1, 2017).
6 Only certain investment options are available to contracts with Nationwide L.inc.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.
This material is not a recommendation to buy, sell, hold or roll over any asset, adopt a financial strategy or use a particular account type.Â It does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person.Â Clients should work with their financial professional to discuss their specific situation.
Variable products are sold by prospectus. Both the product prospectus and underlying fund prospectuses can be obtained from your investment professional or by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, OH 43218-2021. Before investing, carefully consider the fund’s investment objectives, risks, charges and expenses. The product prospectus and underlying fund prospectus contain this and other important information. Read the prospectuses carefully before investing.
When evaluating the purchase of a variable annuity, your clients should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal. All guarantees are subject to the claims-paying ability of Nationwide Life Insurance Company.
You may be charged a penalty if you take your money out early, if you’re not yet 59Âœ (additional 10% tax penalty), or both. Variable annuities have fees and charges that include mortality and expense, administrative fees, contract fees, and the expense of the underlying investment options.
Variable Annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA, Columbus, Ohio.
Nationwide, the Nationwide N and Eagle, Nationwide is on your side and The Nationwide Lifetime Income Rider are service marks of Nationwide Mutual Insurance Company. Â© 2018 Nationwide
Jeff WhetzelÂ Â