Annuities
Riders
When it comes to planning for retirement, it's essential to
consider all the options available to customize your financial plan. Annuity riders
are additional features that can be added to your annuity contract, offering extra
benefits to better meet your needs. A CIFS advisor, will introduce you to some
common annuity riders and explain how they can enhance your investment.
Understanding Annuity Riders
An annuity rider is an optional feature that you can add to
your annuity contract for an additional fee. These riders provide extra benefits,
allowing you to tailor your investment to your specific financial goals and
preferences.
Popular Annuity Riders
There are several annuity riders available, each with its
unique benefits. Some of the most common riders include:
Guaranteed Lifetime
Withdrawal Benefit (GLWB) Rider: This rider ensures that you can withdraw a
specified percentage of your investment each year for the rest of your life,
regardless of market performance. This offers a reliable income stream while still
allowing your investment to grow.
Cost-of-Living Adjustment (COLA) Rider: The COLA rider
helps protect your retirement income against inflation by automatically increasing
your annuity payments each year based on a predetermined percentage or an inflation
index.
Death Benefit Rider: This rider provides a guaranteed
payout to your beneficiaries upon your death. The amount paid is usually a
percentage of your investment, ensuring your loved ones are financially protected.
Long-Term Care (LTC) Rider: The LTC rider provides
additional funds to help cover long-term care expenses, such as nursing home or home
health care costs, in the event you need assistance with daily living activities.
CIFS agent will help you choose the right
Riders for your Annuity
When deciding which riders to add to your annuity, consider
the following factors:
Financial Needs and Goals: Think about your specific
financial needs and goals, both now and in the future. This will help you determine
which riders are most beneficial to your situation.
Costs: Keep in mind that adding riders to your annuity
comes with additional fees. Make sure to weigh the costs against the potential
benefits to ensure the rider is worth the expense.
Flexibility: Some riders can be added or removed after the
annuity contract has started, while others are permanent. Consider the flexibility
you need when selecting riders for your annuity.
Annuity riders can provide valuable enhancements to your
retirement income plan, offering added security and customization. By understanding
the different types of riders and considering your financial needs, goals, and
costs, one of our CIFS advisors can help you make an informed decision on which
riders to include in your annuity contract. This will help you create a retirement
income plan that better suits your unique situation and ensures your financial
security during your golden years.
