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Life Health > Life Insurance

Nationwide Adds 3 Lifetime Income Riders

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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 Suite products, by stating that it’s “one of the strongest, diversified, Fortune 100 insurance and financial services companies.”

(Related: Maybe It’s Time to Gut Check Your Risk Tolerance)

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%.

The Nationwide Lifetime Income Rider+ Accelerated rider also offers guaranteed income for life. It gives purchasers the ability to allocate up to 100% in equities, in exchange for accepting fluctuating retirement income.

The Nationwide Lifetime Income Rider+ Max rider is designed for purchasers who expect to need more income early on, while waiting for Social Security benefits payments or other income payments to start. That rider offers guaranteed income with 100% equity exposure.

Income is calculated on a calendar year basis.

Nationwide is issuing the annuities through its Nationwide Life Insurance Company unit, and it notes that all guarantees and protections are subject to Nationwide Life’s claims paying ability.

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