Sammons Retirement Solutions has introduced a variable annuity with a guaranteed lifetime withdrawal benefit rider.
The new LiveWell Freedom Variable Annuity contract automatically includes a GLWB with a 2% minimum gain, and a 75% share of S&P 500 Index gains.
The annual GLWB charge will amount to 1.45% of the GLWB value.
The maximum total GLWB value gain is 100% of the original value. The value will increase until the client makes a withdrawal, the total GLWB value doubles, or the client reaches the contract “freedom date.”
When the annuity holder gets to the freedom date, Sammons will stop collecting charges for the GLWB rider, and the annuity holder will have full access to the accumulation value, Sammons says.
The GLWB rider will pay out insurance company money from the contract itself, even if the annuity holder still has accumulation value money stored up.
Sammons says it believes the LiveWell Freedom GLWB rider is the first where the lifetime benefits come from the contract, even if the accumulation value is greater than zero.
The West Des Moines, Iowa-based company is issuing the annuity through its Midland National Life Insurance Company unit.
In other annuity launch news:
Athene Annuity and Life Company — a West Des Moines, Iowa-based unit of Athene Holding Ltd. — has introduced the Athene Agility indexed annuity contract.