Lifetime Withdrawal Benefits Overview

Hi, Im Dick Ellis for Annuity FYI, with
an overview of the Lifetime Withdrawal Benefits. Lifetime Withdrawal Benefits are optional
riders that can be attached to many variable annuities. They guarantee a steady stream
of payments for the rest of your life. The payments can never go down but they might
go up.

For example, suppose you invest $100,000 in an annuity with a five percent lifetime
withdrawal benefit rider. You can withdraw five thousand dollars per year for the rest
of your life, even if your account balance goes to zero. Now, many investors like lifetime withdrawal
benefits because if your account value goes up, you can lock in the higher value,
and increase the amount on which the withdrawal percentage is based. In the deferral period,
even if your account value decreases, your benefit base will typically compound by some
guaranteed rate, such as five to ten percent.

For folks who plan a lengthy retirement, lifetime
withdrawal benefits give the financial confidence of regular, guaranteed payments, and ensure
you wont outlive your income, even if the market declines. However, there are some things to be careful
of. Fees for lifetime benefit riders vary widely, and they do not always correlate with
the quality of the benefit. So be sure to compare multiple products.

Its also important
to make sure that the withdrawal amounts are consistent with your income needs. Most allow
you to withdraw between five percent and seven annually. There is a wealth of additional information
on AnnuityFYI, and you can also email us, or call us to speak with a live person. For
AnnuityFYI, I wish you Safe Investing, and remind you that annuities can give you the
peace of mind of guaranteed lifetime income..