mickeyd
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Humberto Cruz's article (atttached) mentions GMWB and GMIB that can be added to VAs. This looks like another way to dip into the wallet (annuity) of VA customers who really should not be invested in a VA in the first place.
The cost of these "living benefits" is not revealed. I'm betting that the cost is way, way more than it is worth. I'm also betting that many VA customers will hedge their bets and sign up "just in case".
http://www.sun-sentinel.com/business/columnists/sfl-zsave06sep06,0,1531855.column
In industry jargon, these initials stand for "guaranteed minimum withdrawal benefit" and "guaranteed minimum income benefit." They are part of an ever-evolving breed of "living benefits" tacked onto variable annuities, which are tax-deferred, mutual fund-like investments within an insurance wrapper.
The benefits, for which you pay an additional ongoing fee, guarantee that you, or you and a beneficiary, usually your spouse, will receive a minimum lifetime income regardless of how your annuity investments perform.
The cost of these "living benefits" is not revealed. I'm betting that the cost is way, way more than it is worth. I'm also betting that many VA customers will hedge their bets and sign up "just in case".
http://www.sun-sentinel.com/business/columnists/sfl-zsave06sep06,0,1531855.column
In industry jargon, these initials stand for "guaranteed minimum withdrawal benefit" and "guaranteed minimum income benefit." They are part of an ever-evolving breed of "living benefits" tacked onto variable annuities, which are tax-deferred, mutual fund-like investments within an insurance wrapper.
The benefits, for which you pay an additional ongoing fee, guarantee that you, or you and a beneficiary, usually your spouse, will receive a minimum lifetime income regardless of how your annuity investments perform.