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Tag Archive: GLWB rider cons to consider

Facts About Annuities That Your Agent Should Share With You

John L. Olsen

FACT #1: The economic benefit of payments under a Guaranteed Lifetime Withdrawal Benefit rider (GLWB) doesn’t materialize until after you’ve received your principal and all of your earned interest.           Here’s an example: At your age 55, you deposit $100,000 into a deferred annuity with a GLWB rider that guarantees a “roll up” interest rate (on the “benefit base”, on which the withdrawal payments are calculated) of 7.2%, compounded for ten years (which is the same as 10% simple interest). That produces a benefit base of...

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