MetLife Inc. announced the introduction Monday of a Lifetime Withdrawal Guarantee rider for most of the new variable annuities its sells.
The rider enhances its lineup of optional living benefits by letting customers withdraw up to 5% of their purchase payments for as long as they live, beginning as early as age 59 and a half.
Customers for the rider make a purchase payment that becomes their initial guaranteed withdrawal amount. This is the minimum amount they are guaranteed to receive over time, provided withdrawals do not exceed 5% annually. A customer who begins withdrawals at or after age 59 and a half may withdraw up to 5% of the guaranteed amount each year for the rest of his or her life, regardless of the impact of market conditions on the customer's account value.
If 5% annual withdrawals begin before age 59 and a half, the customer will not receive payments for life but is guaranteed to get back every dollar invested. The company promises that the guaranteed withdrawal amount will grow at a 5% compounding rate annually until the first withdrawal or 10 years from contract issue, whichever comes first.
