A Context for Considering Variable Annuities with Living Benefit Riders

Variable annuities are controversial products in the investment world. They have long been pilloried for their high internal expenses, opaque and excessive commissions, onerous surrender charges, and inadequate disclosure. In addition, scores of investor complaints and lawsuits alleging unsuitability and misrepresentation, particularly toward seniors, have made variable annuities a hot-button issue with regulators. The relatively recent introduction of so-called “living benefit” riders, however, has added an intriguing new dimension to the debate, and has dramatically changed the variable annuity marketplace.

A Context for Considering Variable Annuities with Living Benefit Riders
Source: Journal of Financial Planning