Certain Indexed Annuities offer us a rider, or add-on option, called income for life. This option allows us to choose, at a later date, between two options.
Option 1 is the actual growth inside our annuity. Option 2 is the income for life which is a guaranteed minimum interest rate growth paid out for life.
This way, we can plan for a minimum guaranteed income for retirement while also having the option to choose between the two options—whichever performed better.
For those looking to retire with safety and security, income for life offers both—while still having the potential to earn competitive interest rate returns.
Income for life is an option, not a product. When used properly, this can give us a retirement plan with assurances and more stability. A retirement income that will last for your entire life.