An arm of Nationwide Mutual Insurance Company is courting fee-based advisors with a variable annuity that comes with a lifetime income benefit.
Nationwide Advisory Solutions has introduced the Nationwide Advisory Retirement Income Annuity (NARIA) contract.
The contract gives purchasers access to about 130 funds in 25 fund families.
One optional feature, the NARIA Retirement Income Developer benefit, can add a lifetime withdrawal benefit. If the investments inside an annuity holder’s contract do well, a step-up provision can increase the withdrawal benefit amount.
Nationwide Advisory Solutions introduced another contract aimed at RIAs and fee-based advisors, a single-premium immediate annuity, in October 2018. That annuity, the Nationwide Advisory Income contract, can convert a large, one-time payment into a steady stream of income.
Nationwide says it now has relationships with about 5,500 registered investment advisors and fee-based advisors.
Nationwide will help RIAs without insurance licenses offer the new variable annuity contract by supplying the services of licensed insurance agents directly to the advisors and clients, at no additional cost.
Here are the annual contract charges Nationwide Advisory Solutions listed for the product in a registration statement filed with the U.S. Securities and Exchange Commission in February, expressed as a percentage of daily net assets:
- Mortality and expense charge: 0.15%
- Administrative charge: 0.05%
- The maximum cost of the Retirement Income Developer benefit: 1.25%.
Links to NARIA product documents filed with the SEC are available here.
A copy of the product registration statement is available here.
— Read 5 Risks That Any Issuer of an Indexed Annuity GWMB Rider Has to Think About, on ThinkAdvisor.