What is a lifetime income rider?
Understand how a GLWB rider can turn an annuity into lifetime income, and which details deserve a closer look.
A lifetime income rider is an optional benefit on certain annuities. A guaranteed lifetime withdrawal benefit, often called a GLWB, sets rules for withdrawals that can continue for life when you meet the contract’s conditions.
The income benefit base is a bookkeeping value used to calculate your rider income. It is not the same as the account value you could withdraw or the surrender value you could receive. A rider roll-up rate describes growth in the benefit base, not an investment return credited to your cash value.
Your age when income begins, the length of any waiting period, and whether income covers one or two lives can change the withdrawal amount. Product availability also varies by state.
Many riders carry an additional fee. Withdrawals above the permitted amount can reduce the benefit, sometimes substantially. Ask for the rider fee, surrender schedule, death benefit, and withdrawal rules before deciding.
The calculator compares estimates from available product income schedules. An advisor can help you verify eligibility and compare the contract details. Guarantees depend on the issuing insurer’s claims-paying ability.