Time and time again I’ve made the point that guaranteed lifetime withdrawal benefit annuities (GLWB) are great products that too often are not properly explained to consumers.
These GLWB riders and benefits can be devilishly complicated and require proper analysis prior to purchase. There are GLWB riders available in both Variable Annuities, and in Fixed Index Annuities.
Variable products make up the majority share of the market while fixed index annuities with GLWB features are beginning to make a big impression as well.
I’d like to direct members this week to AnnuitySpecs.com and an article written by Sheryl J. Moore. Sheryl is a tireless advocate for the proper use and placement of fixed index annuities. She tackles the subject of suitability for GLWB contracts in this article.
This is valuable information because too many salesmen out there consider indexed annuities with guaranteed income features to be a single solution to a variety of financial planning situations. Annuities with guaranteed lifetime income benefits can be a powerful tool when used in the right context.
Sheryl’s article will help you understand when they are not be appropriate. Don’t listen to anyone who tells you that indexed annuities with GLWB are the only way to go.
An additional disclaimer I’ll note is the fact that this article is written more for the benefit of salespeople. The information, however, is fully appropriate for consumers who are interested proper due diligence.
Happy Thanksgiving Everyone!!!
Bryan J. Anderson