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Nationwide Adds Fee-Based Guaranteed Lifetime Withdrawal Benefit Rider: Annuity Moves

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Nationwide is showing fee-based financial advisors that it’s sticking with the annuity living benefits market, in spite of COVID-19 and low interest rates.

The Columbus, Ohio-based insurer is introducing the Nationwide Pro 4 Income Rider, a new, fee-based guaranteed lifetime withdrawal benefit (GLWB) product.

Nationwide is offering the optional rider GLWB only with the Nationwide Advisory Retirement Income Annuity (NARIA) variable annuity contract. Nationwide designed the NARIA contract to appeal to registered investment advisors and other fee-based financial professionals.

(Related: RetireOne Works With Insurers to Launch Two Annuities: Annuity Moves)

The new rider can provide a steady stream of income that will last for the holder’s entire life, and the life of a spouse, even if the contract value falls to $0, Nationwide says.

The rider guarantees a lifetime withdrawal percentage of 4% of the contract value for single-life riders and 3.75% for joint option riders.

The cost is 0.45% of contract value for the single-life version and 0.6% of contract value for the joint version.

The rider gives purchasers and their financial professionals access to about 150 investment options.

The contract holders who buy the rider can put 100% of the contract value in investment options with returns that are linked to the performance of the stock market.

The holder can pay advisory fees of up to 1.5% of the average contract value directly from the contract value, without affecting the holder’s income benefit or death benefit, and without creating a taxable event, Nationwide says.

Nationwide is issuing the rider through its Nationwide Life Insurance Company subsidiary, and Nationwide Life is responsible for making good on the rider guarantees.

Fiduciary Exchange LL (FIDx), Berwyn, Pennsylvania, says it has formed partnerships with American Equity Investment Life Insurance Company and Eagle Life Insurance Company.

FIDx is the platform that supports Envestnet’s Envestnet Insurance Exchange program.

American Equity and Eagle Life are subsidiaries of American Equity Investment Life Holding Company, West Des Moines, Iowa.

The new partnerships will make American Equity and Eagle Life annuities available to financial advisors through the FIDx Protection Intelligence, Envestnet, Envestnet | MoneyGuide, and Halo platforms, according to FIDx.

FIDx also offers annuities from AIG Life & Retirement, Allianz Life, Brighthouse Financial, Global Atlantic Financial Group, Jackson National Life Insurance Co., Nationwide, Prudential Financial, and Transamerica.

Credit Suisse, Zurich, says it will be working with Salt Financial, New York, to develop new strategies for its Quantitative Investment Strategies (QIS) investment index programs.

Credit Suisse has been working to market QIS index programs to U.S. issuers of indexed annuities and indexed life insurance policies.

Salt Financial has patented methods for creating investment index programs that may help reduce index volatility.

— Read 7 Things Annuity Issuers Are Saying Nowon ThinkAdvisor.

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