Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Life Health > Life Insurance

Nationwide Rider Protects Capital And Income

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

NU Online News Service, Feb. 24, 2005, 12:20 p.m. EST

A Columbus, Ohio, company is introducing a new option for variable annuity buyers.[@@]

The company, Nationwide Financial Services Inc., says its new Capital Preservation Plus Lifetime Income rider combines capital protection with income protection.

During an initial “capital preservation phase,” which can last for 5, 7 or 10 years, Nationwide will guarantee return of principal.

At the end of the capital preservation phase, investors can start a new capital preservation phase, or they can enter a “lifetime withdrawals” phase. During the lifetime withdrawals phase, an annuity holder can withdraw “between 4% and 7% of an amount guaranteed for life (based on age at first withdrawal),” Nationwide says.

Holders who use the lifetime withdrawal option can keep making withdrawals even after their full principal has been returned and if their contract value is 0, Nationwide says.

Annuity holders also can decide to annuitize at the end of the capital preservation phase or to drop the rider entirely.

Withdrawals will reduce the contract value and death benefit, and the rider carries a 0.60% charge, Nationwide says.

Nationwide will issue the rider and the underlying annuities through its Nationwide Life Insurance Company and Nationwide Life and Annuity Insurance Company units. The life insurers are responsible for backing the product guarantees.

Nationwide plans to sell the rider through financial institutions, stockbrokers and independent broker-dealers as well as through its own agents.

NOT FOR REPRINT

© 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.