Page 14 - DON'T MAKE ME SAY I TOLD YOU SO - ANNUITY CHAPTER ONLY

Section 5

Living Benefits

The living benefit feature of variable annuities is meant to provide a

guaranteed income of some kind to the contract-owner. They have
gained in popularity as other forms of guaranteed lifetime income

have declined. Living benefits almost always offer a guaranteed
income for the rest of your life. This guarantee of cash flow usually

comes with the option for single or joint lifetime income, or an
income for a specified number of years.

A variable annuity may provide income that:

► Is predictable

► May be guaranteed for your lifetime

► Has the ability to grow

The specifics of these benefits vary from one annuity to the

next, but most insurance companies that issue these contracts
offer living benefits that may provide for a minimum guaranteed

return, or a minimum lifetime withdrawal amount. Like any form
of insurance, there is a cost, typically in the range of 0.25% to 1% a

year, which is in addition to the annuity’s other fees and expenses.

Chapter 4: Annuities

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