Securian
Securian has introduced the Ovation Lifetime Income variable annuity rider, which offers guaranteed income and many growth opportunities. The Ovation rider can be added, for an additional cost, to Securian’s MultiOption variable annuity, underwritten by Minnesota Life Insurance Company.
When clients purchase Ovation, after the benefit date (the later of the contract anniversary following a client’s 59th birthday or the date this benefit is added to the contract), they add the ability to receive guaranteed income for life with withdrawals that can continue regardless of fund performance or contract value. Additionally, any increases in the benefit base and the guaranteed annual income are locked in each year. As long as annual withdrawals stay within the allowed guidelines, clients never lose those gains and the guaranteed annual income never drops because of a down market.
Ovation Lifetime Income provides four opportunities to grow guaranteed income, some even in times of poor market performance: (1) On each contract anniversary, if the contract value has risen, Ovation provides an automatic reset to lock in market gains for the benefit base. (2) For each year clients postpone withdrawals—up to 10 years—the benefit base rises six percent if it would provide more growth than a reset. (3) On the tenth year after Ovation is purchased (or the contract anniversary following the client’s 70th birthday, whichever is later) if there have been no withdrawals since the benefit purchase, the benefit base is raised to 200 percent of the initial benefit base and additional purchase payments made in the first year. And 100 percent of any purchase payments made after the first year are also added to the benefit base. (4) Initial guaranteed annual income is based on the client’s age when the benefit is added. The higher the age, the higher the percentage; from 4.5 to 6.5 percent.
To protect income for both spouses, clients can add Ovation Lifetime Income as a joint benefit at time of purchase.
Ovation establishes a benefit base for calculating guaranteed annual income. The benefit base provides no minimum contract value or investment return, is not available for withdrawal, and is subject to a $5 million maximum. All withdrawals reduce the contract value, the benefit base, and the value of any death benefits. Withdrawals exceeding allowed guidelines or taken before the benefit date may have a negative effect on Ovation’s guarantees.
Ovation may not be cancelled and requires use of an approved asset allocation strategy. It is an optional living benefit available for an additional cost in MultiOption Advisor B Class and Extra variable annuities based on state approval. Guarantees are based on the financial strength and claims paying ability of Minnesota Life. The guarantees have no bearing on the performance of the variable investment options.
