The Annuity Rider: What It Is and How It Can Benefit You

Shawn Plummer

CEO, The Annuity Expert

An annuity rider is an add-on to an annuity policy that provides additional benefits to the policyholder. Many types of riders are available, each offering different protections and advantages. This guide will discuss the types of riders available and how they benefit you.

What Is An Annuity Rider?

An annuity rider is an optional feature that can be added to an annuity contract. It is a way to customize the annuity to fit the specific needs and goals of the policyholder.

Annuity riders are like a personal upgrade to your annuity contract, explicitly designed to meet your individual needs and provide you with added income, protection, or other benefits. They may come at an extra cost but offer tremendous value for the investment. So whether it’s protecting what matters most for peace of mind or giving yourself more financial freedom in retirement – there is sure to be an annuity rider that fits perfectly into your lifestyle and budget!

Annuity riders come in two forms—living benefits and death benefits.

  • Living benefit riders ensure a lifetime income for you and your partner and can guarantee an increase or “roll-up” to the benefit base. This will provide more financial security in the future while ensuring consistent payouts based on either your age of retirement or that of the younger spouse when elected.
  • Long-term care riders provide coverage for long-term care expenses, such as nursing home or in-home care.
  • With death benefit riders, you can seamlessly pass wealth to your beneficiaries and bypass the laborious and costly probate system. Furthermore, these riders provide a steady stream of payments for designees – whether to cover final expenses or fund a charity or organization as beneficiary. So take advantage of this life insurance option today and ensure that those you love are secure!
  • Guaranteed minimum withdrawal benefit riders allow the policyholder to withdraw a minimum amount of money from the annuity each year, regardless of the annuity’s performance.
  • Return of premium riders provides the policyholder with a refund of all or part of the annuity premiums in certain circumstances.

Protection For Spouses

Annuities present couples with the security of a spousal protection rider that ensures financial stability in the event of a spouse’s death. With this provision, surviving partners are entitled to either an assured death benefit or continued ownership over their annuity at its original value – offering peace of mind without losing investments.

Annuity riders can provide valuable benefits for annuity owners, but it’s important to note that riders may not be available on all products. Additionally, annuity guarantees can vary from contract to contract, so weighing the costs carefully to decide if the rider is right for you is essential.

Next Steps

Deciding whether or not to add a rider to your annuity policy can be difficult. There are many factors to consider, such as the cost of the rider and the benefits it offers. This guide should have provided valuable information to help you decide whether or not an annuity rider is right for you. If you have any further questions, our team of experts would be more than happy to answer them. So contact us today for a quote on an annuity policy that includes suitable riders.

Annuity Rider

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Related Reading

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top