Jonny SAMPLE
When it's all about Lifestyle, anyway. Presenting:
The Income Rider
Future Income Needs are Uncertain. Market Yields are Uncertain. For this reason, the Insurance Industry Invented the Concept of "guaranteed Income" a long time ago. This was traditionally accomplished utilizing the concept of "annuitization" which is when you tell your insurance company to turn your lump sum into a pension plan of (almost any) duration. In exchange for a payment as long as a lifetime, annuitization is normally irrevocable and also eliminates your access to the principal henceforth. In addition, pension values could not be ascertained years in advance. Rather, you could only know your pension benefit at the time of exercising "annuitization".
This all changed when the industry came up with the concept of an "income rider" (optionally chosen by the annuity owner and usually for a fee ) that would guarantee a specific lifetime income amount starting at any future point in time - that also could be known well in advance . Income Riders have proven useful to annuity owners that want to know that "regardless of what the market does or does not yield" they can never run out of income and even better yet, see their income guarantees increase annually as long as they defer the income start date.
Income Riders, per se, are Not Available on Fixed Annuities. Make sure you run the comparison report of withdrawing the best available lifetime income amount "fictitiously" from a fixed annuity and you can see the efficacy of the income rider over a guaranteed growing balance that limits liquidity provisions.
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