An insurer has come out with a variable annuity income option that could increase the incentive for purchasers to keep assets in their annuities.
Transamerica Life Insurance Company, Cedar Rapids, Iowa, a unit of AEGON N.V., The Hague, Netherlands, says it has added a “Double Withdrawal Base” benefit with its Retirement Income Choice variable annuity withdrawal guarantee rider.
The new feature provides that, after 10 rider years, or the rider anniversary after age 67, whichever is later, the withdrawal base will be at least double the initial withdrawal base, as long as no withdrawals have been taken, Transamerica says.
“This benefit will include all premiums added within 90 days of the rider date,” Transamerica says. “If the [withdrawal base] after 10 years is higher than the benefit amount, the higher [withdrawal] is used.”
Transamerica Life is responsible for backing the rider guarantees.