COLUMBUS, Ohio, Jan. 27, 2016 /PRNewswire/ -- For the second time in six months, Nationwide will increase payouts to two of its variable annuity lifetime income riders to help clients better meet their retirement income needs.
Starting February 1, 2016, payout percentages for both the Nationwide Lifetime Income Rider® (Nationwide L.inc) and Nationwide Lifetime Income Capture® (Lifetime Income Capture) living benefit riders will increase by 10 basis points1. The rate increases will be available on all new variable annuity contracts.
"It is no secret that the variable annuity industry is in a state of flux, and some carriers are changing their business models entirely," said Eric Henderson, senior vice president of life insurance and annuities at Nationwide. "Nationwide is committed to variable annuities for the long haul. They are a key component of our strong, stable and diversified product portfolio. We know the value that lifetime income riders provide to investors, so we are enhancing our VA products to help meet the needs of today's clients."
In August 2015, the company increased payout percentages by 15 basis points for both the Nationwide L.inc and Lifetime Income Capture riders and added a new pay band for ages 75 – 80 on Nationwide L.inc, dividing the previous 65 – 80 pay band into two distinct classifications.
Nationwide's lifetime income riders provide clients with some of the highest guaranteed lifetime income payouts in the industry2 that will not decrease, even if the contract value drops to zero3. Nationwide L.inc is the company's established living benefit rider, built for investors at or near retirement who are seeking a level of certainty in their retirement income. Lifetime Income Capture provides investors with a longer time-horizon with the possibility of benefiting from upside market potential and achieving a higher level of income.
Visit livingbenefits.nationwide.com or call 1-800-321-6064 to learn more about the Nationwide L.inc and Lifetime Income Capture riders.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor's. The company provides a full range of insurance and financial services, including auto, commercial, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; banking and mortgages; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com.
All guarantees are subject to the claims-paying ability of Nationwide Life Insurance Company.
When evaluating the purchase of a variable annuity, your clients should be aware that variable annuities are long-term investment vehicles designed for retirement purposes and will fluctuate in value; annuities have limitations; and investing involves market risk, including possible loss of principal.
Variable annuities are sold by prospectus. The product prospectus and underlying fund prospectuses can be obtained by writing to Nationwide Life Insurance Company, P.O. Box 182021, Columbus, Ohio 43218-2021 or by visiting nationwide.com. Carefully consider the fund's investment objectives, risks, charges and expenses. Prospectuses contain this and other important information — your clients should read them carefully before investing.
Nationwide variable annuities are issued by Nationwide Life Insurance Company, Columbus, Ohio. The general distributor is Nationwide Investment Services Corporation, member FINRA
The Nationwide Lifetime Income Rider and Nationwide Lifetime Income Capture are service marks of Nationwide Life Insurance Company.
Nationwide, Nationwide is on your side, Join the Nation and the Nationwide N and Eagle are service marks of Nationwide Mutual Insurance Company. © 2016 Nationwide
1Increase does not apply to the Joint Option band 45 – 59 ½.
2Source: VARDS, as of 8/1/2015 among competitors with lifetime income payouts that do not decrease.
3All guarantees are subject to rider terms and conditions. Riders are available on Nationwide variable annuities at an additional cost.