Nationwide introduced a collection of three annuity lifetime income riders — partly because it can.
U.S. life insurers tend to generate much of the cash that funds annuities by investing in corporate bonds and other fixed-income investments. Many life insurers have responded to falling interest rates and investment market volatility to ending, or at least suspending, the sale of products that offer annuity benefits guarantees.
Nationwide started the announcement of its new Nationwide Lifetime Income Rider+ Suite products, or L.inc+ Suite products, by stating that it’s “one of the strongest, diversified, Fortune 100 insurance and financial services companies.”
The Columbus, Ohio-based mutual insurer says it will offer the new L.inc_ Suite riders together with some Nationwide Destination 2.0 variable annuities.
The riders are guaranteed lifetime withdrawal benefits riders.
One, the Nationwide Lifetime Income Rider+ Core rider, offers guaranteed income for life with a maximum equity exposure of 60%.