Investing in a variable annuity can provide you and your family with a secured income after you retire. When you invest your finances in a variable annuity you are counting on this income, so you’re likely curious as to what will happen if you make this investment and pass away. In a few of our blog posts we’ve touched on the necessity of having a death beneficiary when you sign your agreement for an annuity, but there are other types of riders too.
Variable annuities do offer optional riders, both death benefit riders and living benefit riders, that provide guarantees for income that you could receive from your annuity at a later date. Signing for a rider can be complicated, and can vary from insurance company to insurance company. When you sign the contract for your annuity you will likely want a beneficiary in case you pass away, that way someone still receives the money that you’ve invested in the annuity. More often than not, death beneficiaries won’t have an additional signing cost, but won’t receive a payout other than in the case of the signers death.
For other optional buyers, the cost can range from .25% to .75% a year. This process can be complicated, and again, differs from insurance company to insurance company. For optional riders that are living beneficiaries, make sure that you understand what the circumstances and conditions are for them to be a benefit to you. It’s important that you understand what will apply for this beneficiary before you sign for them as an optional rider.
If you’re really trying to get the most out of the variable annuity you’ve invested in, ask the team of financial professionals at Annuity Genius what your options are for optional riders. From there, determine whether or not signing for a rider is what will work best for your long term, financial goals. Contact our office today to speak with a member of our team about which options you’re eligible for.