How Can Annuity Living Benefits Help You?


Filed under: Retirement


Annuities have regained their popularity in recent years, due to their flexibility in providing retirement income. But, also due to that flexibility, there are hundreds of different types of annuities available to you! How do you know you’re choosing a contract that truly suits your needs?

First, it’s important to remember that annuities are considered an investment. As such, they do confer some risk, even though they’re generally considered relatively safe options. So, keep that in mind as you weigh your options.

A primary question you should ask yourself is whether you prefer to include a “living benefits’ clause in your annuity contract. Here are a few things you should know about living benefits.

What could happen in a market downturn? Even if the contract’s underlying investments lose money, a guaranteed minimum withdrawal benefit allows you to withdraw a certain percentage of the premiums paid, until you have withdrawn 100 percent of those premiums. Some people view this benefit as a way to guarantee their premium payments even in the event of an unhealthy market.

You can also insure the value of the contract with a guaranteed minimum accumulation benefit. This living benefit prevents the contract value from falling below a specified value (usually equal to the premiums paid).

Since markets can be unpredictable, many retirees are concerned about generating a dependable income. A guaranteed minimum income benefit is designed to ensure that your payouts are generated according to a minimum base.

These are just some of the different terms you will see while researching annuities. Living benefits are designed to protect your investment, according to your exact concerns. But since those concerns can vary, along with the rest of your retirement outlook, we recommend that you call us for professional guidance if you’re considering an annuity. We can help you understand all of your options and match you to a contract that addresses your needs and priorities.


If you would like more information or have specific questions, please contact us using the following form. We would be happy to assist you.

This information has been provided by a licensed insurance professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting the insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax, trust and estate, or investment advice. Infinite Wealth Advisors is not an investment advisory firm.  Investment Advisory Services provided by NAMCOA® – Naples Asset Management Company®, LLC, a federally registered investment advisor, website: www.NAMCOA.com .