The Best Income Riders Are Not Annuitized: Shootin’ It Straight With Stan

Learn why locking yourself into irreversible annuity payments isn’t the only way to secure lifetime income. In this episode, you’ll hear how non-annuitized income riders can give you contractual guarantees and the flexibility to turn income on and off when life or tax laws change.

  

In this episode, The Annuity Man discussed: 

• Annuitization explained and “water faucet” analogy

• Single premium immediate annuities, DIAs, and QLACs

• Income riders as flexible, non-annuitized lifetime income

• Turning income on/off and adjusting start dates

• Importance of A+ rated carriers and avoiding low-rated “high quote” products

 

Key Takeaways: 

• Annuitization creates an irrevocable income stream—once it’s turned on, the payments keep flowing for life or the contract period, like ripping the knob off a water faucet.

• Income riders provide a contractual path to lifetime income while allowing you to maintain control over the asset and the timing of your payments.

• The best income riders are “drawdown” products, where each lifetime payment is simply subtracted from the policy rather than locking you into a traditional annuitization.

• Lifetime income levels are driven primarily by life expectancy at the time you start payments; interest rates play only a minor role.

• It’s critical to use strong, A+ or better carriers for income riders because they are not backed by state guarantee funds, even if a lower-rated company offers a higher quote.

 

"We use the indexed annuity as a delivery system for the income rider, but the best income riders are not annuitization products." —  Stan The Annuity Man

 

Connect with The Annuity Man: 

Website: http://theannuityman.com/ 

Email: [e-mail] 

Book: Owner’s Manuals: https://www.stantheannuityman.com/how-do-annuities-work

YouTube: https://www.youtube.com/channel/UCCXKKxvVslbeGAlEc5sra2g 

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