Over the past decade, living benefits have been the primary selling point for variable annuities. That’s what has driven most of the VA sales at Nationwide Financial.
We expect that will continue to be the case because living benefits can be a great tool to help clients address the income replacement challenge in retirement. However, advisors shouldn’t forget to help clients understand that a VA can bring other powerful benefits to a portfolio beyond living benefits.
At a time when life expectancies are soaring, many clients are struggling to balance the need to plan for an unknown period of income with their hopes to pass an inheritance along to their family. Variable annuities can help clients meet both of these goals because money in the annuity can be tapped for income if needed or left to heirs with a VA’s death benefit feature.