Annuity Riders

Many people are familiar with the concept of riders and how a rider pertains to homeowner’s insurance. For example, if a homeowner possesses valuable art investments, the homeowner may elect to purchase an insurance rider in order to gain extra coverage beyond a standard policy, just to protect their art investment. An annuity rider is similar, in that it can be purchased by the annuity holder and then be attached to an annuity.

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

Annuity riders can help maximize the benefits annuities provide

Many people are familiar with the concept of riders and how a rider pertains to homeowners’ insurance. For example, if a homeowner possesses valuable art investments, the homeowner may elect to purchase an insurance rider to gain extra coverage beyond a standard policy, to protect their art investment. An annuity rider is similar, in that it can be purchased by the annuity holder and then be attached to an annuity. Whereas riders on insurance policies protect and ensure the property.

Annuity riders protect principal and income.

Annuity riders on fixed and fixed indexed annuities are designed to guarantee the policyholder a fixed, specified dollar amount for a specific period of time. Such a rider protects the annuity holder by ensuring that the holder will receive guaranteed distributions in a specific dollar amount and thus the rider protects the annuity owner’s income.

The most common type of annuity rider is the income rider. One favorite type of income rider is the guaranteed income rider. This rider is attached to an annuity to provide the purchaser with a secure retirement. Usually, the contract involves a single, or lump-sum premium, in exchange for which the payments are guaranteed on a monthly, quarterly, or yearly basis. Withdrawal benefits provide options for withdrawing sums and percentages of growth on investments. Some annuities are available with certain benefits already attached, while others allow the attachment of this rider based on the annuity buyer’s preference.

Another often seen annuity rider is a death benefit. If the policy owner dies, the person selected as a beneficiary will receive either all of the money in the account or some guaranteed minimum (such as all purchase payments minus prior withdrawals).

A return of premium rider guarantees that the annuity owner will receive a return of at least the initial amount paid as the premium. The withdrawals can be structured in any number of ways, but an essential feature is that under no circumstances will he or she be paid less than the amount invested.

Annuity riders can be a valuable feature to add when making an annuity purchase. The rider can be tailored to the specific needs of a given purchaser. It is essential to know the options available, as well as the possible advantages and disadvantages of any given annuity rider. The annuity purchaser must choose the annuity that best fits his or her future goals and expectations.

About syndicated columnists

Syndicated Columnists is a National organization committed to a fully transparent approach to money management. Providing original content aimed at the financial market, their articles are diverse, easy to understand, and targeted to the average reader. These columnists pool and share article information to provide the highest quality experience for their readers.

View The Best Annuity Rates Available Now

Annuities are a safe and reliable retirement product. They can transform your savings into a more predictable income. Speak with one of our qualified financial professionals today to find out how an annuity can offer you guaranteed monthly income for life.

Our unique system of “Pooled and Shared” articles by our authors, our outside contributors, and writing assistants provides efficiency, enhanced collaboration, and greater topic accessibility. This allows for a better utilization of content and productivity while delivering meaningful content to our readers.

Content in our posted articles is deemed to be accurate but topics, facts and laws can change. It is always a good idea to verify facts before making decisions. Always seek authorized and professional advice regarding financial decisions which includes investing, annuity purchases, tax planning, changes in a financial portfolio and retirement planning.

This article is for informational purposes only and is based on the writer’s general research and understanding of the topic. The author and publisher do not assume responsibility for any actions taken based on the information presented.

All annuity guarantees are subject to the claims-paying ability of the insurer. Specific annuity contract terms may vary by provider. Annuity riders may be subject to eligibility and underwriting requirements, additional premium requirements and/or minimum or maximum coverage amounts. Availability and rider provisions may vary by state.

Annuity.com agents are independent licensed insurance agents and are not licensed to sell securities or banking products. Annuity.com does not provide tax or legal advice. Any discussion of these topics within the article is for general information purposes only and does not constitute specific advice from any independent agent or Annuity.com as a whole. Readers are encouraged to consult with a licensed financial advisor or CPA before making any financial or investment decisions.

Share This Entry:

In This Article

Protect Your Retirement

Our 20th edition of The Safe Money Guide, the standard of the industry.

Recent Posts

Archives