Guardian Rolls Out VA And VA Income Guarantee

The guaranteed income base is “the greater of: the premium payments accumulated at 5% per year, adjusted for withdrawals, until they accumulate to 2.5 times the cumulative net premium payments received or the annuitant attains age 85 (whichever occurs first), OR the highest contract anniversary prior to the annuitant’s 81st birthday plus any premiums received after this date, adjusted for any partial withdrawals,” Guardian says.

The annual fee for the guarantee is 0.5% of the guaranteed income base on the contract anniversary, deducted proportionally from each allocation option, Guardian says.

The GMIB is available only at issue and is not available if the annuitant is age 75 or older, Guardian says.

Guardian is limiting total first-year premium payments for contracts covered by the income guarantee rider to $500,000.

Operating expenses for the investment options range from 0.34% to 1.91%, mortality and expense risk charges range from 1.05% to 1.55% of the net asset value of the variable investment options, and the maximum potential declining surrender charge is 8%, Guardian says.