A way to advertise more attractive benefits in the early years?
December 6, 2022 by Sheryl J. Moore
Wink, Inc.‘s AnnuitySpecs tool houses product information on what Jim Wagner from Protective Life refers to as “high/low” riders in the article, Variable Annuities: What’s In and What’s Out.
These are riders, where when the benefit base value is exhausted, the guaranteed withdrawal payments are reduced.
I’ve never understood the market application for such riders. I’m sure the line of thinking is that these work for folks that anticipate their expenses declining, as they age. However, all of the studies that I’ve ever read indicate that your standard of living doesn’t decline as you age.
I’m left feeling that these may just be a way to advertise more attractive benefits in the early years. Am I wrong?
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