Craig Hawley (Photo: Nationwide) Craig Hawley (Photo: Nationwide)

Nationwide Advisory Solutions has introduced an annuity contract aimed at RIAs and fee-based advisors with clients who already have an immediate need for regular streams of income.

The Louisville, Kentucky-based Nationwide unit has added the Nationwide Advisory Income contract.

(Related: Annuity Issuers Add Tools Aimed at RIA Market)

The product is a single-premium annuity contract, or SPIA.

Craig Hawley, head of Nationwide Advisory Solutions, said in a statement about the new contract that 10,000 baby boomers are retiring each day.

“Our new SPIA helps expand insurance opportunities for RIAs and fee-based advisors, and helps them solve the retirement income challenge for their clients,” Hawley said.

What is a SPIA?

A SPIA is an arrangement set up in such a way that the purchaser pays a large sum of cash to an insurer. The insurer then converts the cash into a stream of regular payments, either for a specified period or for an individual’s lifetime.

For a retiree, buying a SPIA is a way to turn a large pot of retirement savings into the equivalent of a regular paycheck.

People who already need long-term care, or the families of people who need long-term care, can use SPIA contracts to pay for the care.

What is Nationwide Advisory Solutions?

Nationwide Advisory Solutions is the company formerly known as Jefferson National.

Nationwide, which is based in Columbus, Ohio, acquired Nationwide Advisory Solutions last year.

Nationwide’s Nationwide Life Insurance Company unit will write the new annuities.

What’s different about this SPIA?

Nationwide Advisory Solutions says it’s different from its competitors because it has designed its products, from the start, for registered investment advisors and fee-based advisors.

The company has designed the product to fit with fee-based advisors’ fee-deduction systems, and it says it will soon introduce a feature that will feed contract fee data directly into advisors’ computers.

— Read How Nationwide’s Advisory Solutions Unit Head Sees the Worldon ThinkAdvisor.

— Connect with ThinkAdvisor Life/Health on LinkedIn and Twitter.