Wednesday, February 18, 2009
Vanguard Applies for a GLWB Rider
Vanguard, the low-cost direct marketer of mutual funds and other financial products and services, has filed an application with the SEC for a flexible variable annuity contract with a guaranteed lifetime withdrawal benefit.
An AEGON subsidiary, the Monumental Life Insurance Company, will provide the insurance wrapper. Vanguard does not own its own insurance company. The new contract resembles Vanguard¹s existing no-load, no-surrender fee variable annuity, but with a lifetime income option.
The precise cost of the rider, which can apply to one owner or joint owners, and the payout rates at various age bands were left blank in the application, although Vanguard provided an example that set the rider cost at one percent of the income base. The minimum initial payment is $5,000 and a $25 annual fee is assessed when the account value drops below $25,000...
On Wall Street: Vanguard Applies for a GLWB Rider
An AEGON subsidiary, the Monumental Life Insurance Company, will provide the insurance wrapper. Vanguard does not own its own insurance company. The new contract resembles Vanguard¹s existing no-load, no-surrender fee variable annuity, but with a lifetime income option.
The precise cost of the rider, which can apply to one owner or joint owners, and the payout rates at various age bands were left blank in the application, although Vanguard provided an example that set the rider cost at one percent of the income base. The minimum initial payment is $5,000 and a $25 annual fee is assessed when the account value drops below $25,000...
On Wall Street: Vanguard Applies for a GLWB Rider
Permalink posted by markw @ 10:26 AM 
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