COLUMBUS, Ohio, March 4, 2019 /PRNewswire/ -- Nationwide, a leading insurance and financial services organization, and product development partner Annexus, the premier independent designer of fixed indexed annuities (FIAs), announced a new guaranteed lifetime withdrawal benefit feature available with the Nationwide New Heights® fixed indexed annuities, the top-selling accumulation FIA on the market.1 The Nationwide High Point 365® Lifetime Income Benefit rider with Purchase Payment Bonus ("the rider") now features one of the industry's strongest lifetime income guarantees.2
"Longevity and persistent low interest rates are creating a retirement crisis, and many Americans are in real danger of outliving their retirement savings," said Mike Morrone, vice president of annuity product strategy at Nationwide. "This new solution is designed to help meet retirees' critical need for income they can't outlive."
Exclusively available with the New Heights FIAs, the rider guarantees that the amount used to calculate future income will be at least 110 percent of the purchase payment plus 7 percent compound annual growth for up to 10 years.3 An additional feature automatically locks in every daily high point of the accumulation strategy, providing an opportunity for continued income growth after 10 years.
"The rider features some of the highest guaranteed income available today from an A+ rated carrier,"2 said Eric Henderson, senior vice president of life insurance and annuities at Nationwide. "Across the industry, the rider offers the strongest combination for accumulation and guaranteed income. We invite every advisor to contact their Nationwide wholesaler or Annexus-affiliated independent distribution company, take the income challenge and see how this solution stacks up to what they are currently offering."
"Many other income benefits reduce accumulation potential through lower participation rates or earnings caps to subsidize their income guarantees," said Annexus co-founder Don Dady. "New Heights and the rider provide a transparent solution, offering the same accumulation strategies the base product offers without limiting clients' accumulation potential."
"More and more clients are beginning to transition from the accumulation phase to the income phase in retirement and will be seeking guaranteed income solutions," said Annexus co-founder Ron Shurts. "The rider is one of the most flexible lifetime income solutions on the market, and this FIA should be a top choice for Registered Investment Advisors and financial advisors who are working with clients to provide a more secure retirement."
Nationwide High Point 365® Lifetime Income Benefit rider with Purchase Payment Bonus is an optional rider available for an annual charge with the New Heights suite of fixed indexed annuities.
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor's. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.
About Annexus Annexus designs solutions to help Americans grow and protect retirement savings. For over a decade, Annexus has developed market-leading fixed indexed annuities and indexed universal life insurance products. Our products have forged partnerships with the industry's leading insurance carriers and the world's largest investment banks. A handpicked network of financial professionals use Annexus solutions to help clients take control of their retirement. Find out more about Annexus and our products at www.annexus.com.
1 Source: Wink Sales and Market Report, 3rd Quarter 2018. 2 Source: Annexus review of top-selling guaranteed income riders among carriers with an A+ rating. 3 The 10 percent bonus is calculated based upon the purchase payment amount and applied to the minimum income benefit value. Lifetime income is based on the greater of the minimum income benefit value and the highest daily value of the accumulation strategy, which is called the highest Balanced Allocation Value (Highest BAV). The BAV is the greater of the contract value plus any uncredited interest earnings or the return of purchase payment guarantee.
Guarantees and protections are subject to the claims-paying ability of Nationwide Life and Annuity Insurance Company. Nationwide New Heights is underwritten by Nationwide Life and Annuity Insurance Company, Columbus, Ohio.
Nationwide and its affiliates are not affiliated to Annexus and its affiliates.