A large insurer is joining the competition to provide annuity benefits guarantees designed for married couples.
Guardian Insurance & Annuity Company Inc., a unit of Guardian Life Insurance Company of America, New York, has introduced the Spousal AssetAccess and Lifetime AssetAccess guaranteed minimum withdrawal benefits riders.
The Lifetime version can help guarantee individuals who follow rider rules the ability to receive a lifetime stream of withdrawals.
The Spousal version can guarantee a withdrawal stream for a couple that will last as long as the husband or wife is alive, according to Guardian.
Guardian Insurance is responsible for backing the guarantees.
Guardian Insurance is charging 0.6% of the “adjusted guaranteed withdrawal balance” for the individual rider and 0.75% of the adjusted guaranteed withdrawal balance for the rider for couples.
The annual administration expense is 0.2% of the net asset value of the variable investment options, and the mortality and expense risk charges can range from 1.05% to 1.55%, Guardian Insurance says.
The maximum potential declining surrender charge is 8%.