AXA Equitable Adds GWBL Optional Rider to Accumulator Variable Annuity |
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Written by U.S. Insurance News
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Monday, 03 March 2008 |
Here’s an easy way for a client to double his money. All that’s required is an initial contribution—and patience.
AXA Equitable Life Insurance Company is offering a new way to help retirees afford the lifestyle they want to pursue during their retirement—a stage in life that’s getting longer for most Americans. The newest rider available with the AXA Equitable’s top-selling Accumulator® variable annuity provides for a minimum 200 percent benefit base guarantee if no withdrawals are taken during the first 10 years of the contract or until age 70, whichever is later.
Thus, a person who makes an initial contribution of $100,000 will have a minimum $200,000 benefit base upon the tenth anniversary of the contract or when turning 70—whichever is later—if no withdrawals have been made prior to that.
Claude Methot, senior vice president and chief product officer for AXA Equitable, acknowledged that the uncertainty of the financial markets makes it difficult for people to predict exactly how much money they'll be able to spend in retirement.
“One way for them to guarantee part of their income is to purchase a variable annuity that will allow them to withdraw a certain percentage every year for life,” he offered.
No matter how the market performs, the Guaranteed Withdrawal Benefit for Life (GWBL) optional rider available with the Accumulator means that the owner will receive a minimum amount of money each year for life. The guaranteed withdrawal percentage is determined by the owner’s age at the time of the first withdrawal and can range from 4–7 percent of the benefit base.
In addition, the owner may see a rise in the withdrawal percentage if he experiences an increase in the benefit base during an age band change. For example, owners who are 45–59 years old may withdraw 4 percent of the benefit base. But, if good performance causes the base to increase, owners who are 60–75 may withdraw 5 percent of the base.
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