A new study focuses on the savings rate that people in a workplace retirement savings plan need in order to achieve a more secure retirement.
ST. PAUL, Minn.--(BUSINESS WIRE)-- Securian recently announced introduction of its Ovation Lifetime Income II guaranteed living withdrawal benefit (GLWB) rider, an optional rider available with certain Securian MultiOption variable annuities for an additional cost. The rider provides a benefit which is designed to guarantee annual withdrawals from the annuity contract, up to an annual limit, beginning the later of the contract anniversary following your 59th birthday or the date the rider is elected.
“We fine tuned our original Ovation GLWB, adding new competitive features that we believe clients will appreciate,” said Daniel Kruse, second vice president and actuary, Individual Annuities, Securian Financial Group. The annuity products are issued by Minnesota Life Insurance Company, Securian’s largest subsidiary.
Features on the Ovation II GLWB rider include:
The Ovation Lifetime Income II rider is available for an additional cost (1.20% on the greater of contract value or benefit base value). Clients need to consider many factors when considering selection of a GLWB benefits such as Ovation II. A benefit base enhancement feature, withdrawal percentages and investment options are factors to consider, along with the cost and limitations of the optional living benefit and the base variable annuity product.
One also should consider the mechanics behind a benefit’s guarantee, which generally include multiple features that may have a significant impact on a GLWB’s available guaranteed income. When clients consider Ovation II, advisors must be sure to address all of these features and their benefits and limitations in their analyses.
Ovation II establishes a benefit base for calculating guaranteed annual income. It provides no minimum contract value or investment return and is not available for withdrawal. Once elected the rider may not be cancelled. The optional rider is only available on certain contract types.
An annuity is intended to be a long-term, tax-deferred retirement vehicle. Earnings are taxable as ordinary income when distributed, and if withdrawn before age 59½, may be subject to a ten percent federal tax penalty. The tax deferral feature offers no additional value if the annuity funds an IRA or other tax-qualified plan. Annuities are not FDIC or NCUA insured, bank guaranteed or insured by any federal government agency.
There are charges and expenses associated with annuities, such as deferred sales charges for early withdrawals. Variable annuities have additional expenses such as mortality and expense risk, administrative charges, investment management fees and rider fees. They are subject to market fluctuation, investment risk and loss of principal. Guarantees are backed by the financial strength and claims-paying ability of the issuing company. The guarantees have no bearing on the performance of the variable investment options. Diversification is a method used to manage risk. It does not guarantee against loss.
Variable annuities are sold by prospectus. You may obtain a copy of the prospectus from your representative or from Minnesota Life Insurance Company at the address below. You should consider the investment objectives, risks, charges and expenses of a portfolio and the variable insurance product before investing. The prospectuses contain this and other information. Please read the prospectuses carefully before investing.
Insurance products are issued by Minnesota Life Insurance Company in all states except New York. In New York, products are issued by Securian Life Insurance Company, a New York admitted insurer. Both companies are headquartered in St. Paul, MN. Product availability and features may vary by state. Each insurer is solely responsible for the financial obligations under the policies or contracts it issues. Securities offered through Securian Financial Services, Inc., member FINRA/SIPC. 400 Robert Street North, St. Paul, MN 55101-2098, 1-800-820-4205.
DOFU – 05-2012
For Securian Financial Services, Inc.
Maggie Jensen, APR, Media Relations Consultant, 651-665-7558
Source: Securian Financial Services, Inc.