An annuity manufacturer has come up with a variable annuity living benefit option designed for sale through banks and independent broker-dealers.
Ameriprise Financial Inc., Minneapolis, says its RiverSource annuity business has started selling the SecureSource guaranteed lifetime withdrawal benefit through banks and broker-dealers.
The rider protects a purchaser’s principal, and it gives purchasers the ability to elect lifetime income by withdrawing any amount up to 6% for life starting at age 68 in New York and at age 65 in other states.
Purchasers also can withdraw up to 7% for 14 years.
Investors can start, stop or change their withdrawal amounts at any time, Ameriprise says.
Ameriprise will require consumers who buy the riders to Portfolio Navigator asset-allocation models.
The rider costs 0.65% per year for the single-life benefit, and 0.85% per year for the joint-life benefit.
RiverSource variable annuities permit withdrawals of 10% annually without the purchase of the rider.
Ameriprise writes the annuities through RiverSource Life Insurance Company of New York, Albany, N.Y., in New York, and through RiverSource Life Insurance Company, Minneapolis, elsewhere. The RiverSource Life companies are responsible for backing the annuity and rider guarantees.