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.
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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.