May 14, 2013

Nationwide Releases Fee-Based Variable Annuity

Industry continues to woo once-spurned advisors

Nationwide is the latest company to join the ranks of an ongoing industry push to convince “reluctant” advisors that their concerns with variable annuities have been addressed.

The Columbus, Ohio-based financial giant introduced Nationwide Destination Architect 2.0, a low-cost, advisory-based variable annuity, on Tuesday.

The company also introduced Nationwide Lifetime Income Track, an optional guaranteed lifetime withdrawal benefit rider available for an additional cost with Nationwide Destination Architect for clients who want guaranteed lifetime withdrawals in retirement.

“This product will appeal primarily to fee-based advisors who may have been reluctant to sell VAs in the past based on cost,” Eric Henderson, senior vice president of life insurance and annuities for Nationwide, said in a statement.

Features of Nationwide Destination Architect include:

  • No surrender charges
  • A One-Year Enhanced Death Benefit rider (available for an additional cost)
  • Spousal Protection Feature (SPF), available at no additional cost on all death benefit options
  • More than 100 investment options when Lifetime Income Track is not elected

The Lifetime Income Track optional GLWB rider includes features, such as:

  • Guaranteed lifetime income without annuitization
  • An annual step-up feature on the income benefit base
  • A Joint Option, available for an additional cost, that allows income payments to continue for the contract owner’s spouse
  • Lifetime withdrawal percentages based on the owner’s age and rider duration
  • Underlying Investment options with a maximum equity exposure of 70 percent (80 percent via managed volatility investment options) and a minimum equity exposure of 40 percent
  • A Non-Lifetime Withdrawal feature, which does not lock in the lifetime withdrawal percentage or impact the ability to qualify for higher lifetime withdrawal percentages. 

Nationwide Destination Architect will replace Nationwide Income Architect, which will no longer be available as of May 1, 2013 or upon state approval.  

---

More on VAs on AdvisorOne:

Reprints Discuss this story
This is where the comments go.