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Genworth Optional Income Protection Rider

April 12, 2014

Optional Income Protection Rider Benefit Base Enhancement Increases to 8%

As individuals with pension plans get closer to retirement, they have an important decision to make. They need to determine whether or not to take a single life or a joint and survivor benefit on their pension plans. This is an irrevocable choice that can have a significant financial impact on the rest of their lives.

Beginning August 18th, the Benefit Base Enhancement on the optional Income Protection Rider is increasing to 8%. Available on SecureLiving® Index 7 and SecureLiving® Index 10 Plus, the change is effective in all states where the rider is available. The optional Income Protection Rider is designed to enhance the lifetime income opportunities for those clients that are ready to retire soon or who are expecting to retire many years from now.

The Income Protection rider can help them prepare for a more secure retirement by combining the enhanced benefit base, which is immediately 8% higher than their premium, with other great income features. For an annual fee of 0.95% of the benefit base*, clients get access to:

  • 8% benefit base enhancement
  • 8% simple roll-up credited daily to the benefit base for up to 10 years or whenever the client chooses to begin taking income withdrawals, whichever is sooner
  • The ability to begin income on their schedule with partial year credit for benefit base increases even when an income withdrawal is started during the contract year
  • Competitive withdrawal factors
  • Growth opportunity even after the 10-year rollup period. After 10 years, if income withdrawals have not started, the benefit base will increase dollar for dollar based on interest credited to the contract value until income withdrawals begin
  • Once income withdrawals have started, the client can defer up to one year’s worth of income withdrawals to be taken at a future time.

These changes are designed to enhance the income benefits of the SecureLiving® Index 7 and Index 10 Plus contracts. When combined with the accumulation opportunity that SecureLiving® index annuities represent, financial professionals and their clients can be confident that their retirement dollars are protected and working to help them meet their financial goals.

*The annual charge is based on the benefit base and deducted annually from the contract value at the end of the each contract year. The benefit base is used only to calculate the rider income withdrawals and is not a representation of the contract value or surrender value.