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Finding the Best Death Benefit Rider for Your Client

January 3, 2014 | BY JAMIE PETERSON

Are your clients concerned with leaving a legacy to their loved ones? Adding a death benefit rider onto an annuity can fill that need while providing a dependable income during their living years.

Several questions should be considered as you research which death benefit rider provides the best fit for your client. While considering all of the options available, ask several questions, including the following:

1. Is there a waiting period before the enhanced death benefit rider becomes available?

    Some carriers build the enhanced death benefit option into the chassis of the annuity, making the death benefit available immediately; with other carriers, it may not be available or 3-5 years.

2. What are the fees that will be charged?

    Research the fees on an à la carte rider as they can range from 0.70% to 1.25%+. With a built-in enhanced death benefit feature, additional fees are not charged for the death benefit.

3. What percentage does the enhanced death benefit roll up at, and is the roll up compounded or simple interest?

4. What is the maximum roll up period?

5. What events will stop roll up credits from being applied to the enhanced death benefit rider?

    Examples could be client’s age or even a penalty-free withdrawal.

With so many options and questions to ponder, let the experts at Davis Life help you narrow the field to find the death benefit rider that fits your specific client. Give us a call today!

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