Customize our retirement solutions with income, care, and family protection riders available on our fixed indexed annuity portfolio.
Fixed Indexed Annuity Rider Options
Customize our retirement solutions with income, care, and family protection riders available on our fixed indexed annuity portfolio.
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Available with Nassau Income Accelerator
The Flex-Forward Income BenefitSM provides guaranteed income payments that can be that can be used to help optimize other income sources like Social Security or pension payouts.* At issue, an Income Benefit Base is set that equals the single premium plus a 10% Income Benefit Base bonus. Each year, 10% simple interest roll ups occur to the Income Benefit Base for up to 10 years or until rider exercise, whichever comes first. The rider provides guaranteed income payments in two phases—the Early Income Period and the Lifetime Income Period.
At the time of rider exercise, the client chooses the Early Income Amount (subject to a maximum and a minimum) and the number of years of the Early Income Period (up to 8 years). When the Early Income Period ends, the rider will provide guaranteed income payments equal to the Lifetime Income Amount. The more income the client receives during the Early Income Period, by choosing a longer Early Income Period or a higher Early Income Amount, the less they will receive during the Lifetime Income Period. The rider uses a unique calculation based on the Annual Benefit Percentage and other factors. The youngest covered person must be age 70 or below at rider exercise to be eligible for the Early Income Feature.1 If the rider is exercised at age 71 or older, payments will be set at the Lifetime Income Amount.
The Flex-Forward Income Benefit is only available to issue ages 50-70 of youngest covered person and has an additional annual fee equal to 0.95% of the Income Benefit Base.2
Annual Benefit Amount Supplement
*Nassau Life and Annuity Company, the Nassau Income Accelerator Annuity and the Nassau Flex-Forward Income Benefit rider are NOT connected with, recommended, or endorsed by any governmental program, agency, or entity, including the Social Security Administration.
1 If the client exercises their rider and starts taking Early Income Amount payments before the youngest Covered Person turns 59½, they may be subject to tax penalties. Please be sure to encourage your clients to discuss their situation with a tax advisor prior to exercising their rider.
2 The Income Benefit Base is a calculated value used solely to determine the guaranteed lifetime income payment and rider fee and is not available for withdrawal. Prior to exercising the rider, your client can help to maximize their potential guaranteed lifetime income payment by minimizing withdrawals as all withdrawals, including free withdrawals and Required Minimum Distributions (RMDs), are taken from the annuity’s contract value and will also reduce the Income Benefit Base.
Available with Nassau Income Accelerator
The Income Horizon rider offers two options: Early and Later.3 They offer access to guaranteed income payments of a specific amount every year for life once exercised, if certain conditions are met, as well as growth of the potential guaranteed income payments’ amount when your client waits to exercise the rider. At issue, an Income Benefit Base is set that equals the single premium, plus a 10% Income Benefit Base bonus. Each year, 10% simple interest roll ups occur to the Income Benefit base for up to up to 10 years or until rider exercise, whichever comes first.4 Generally, Income Horizon: Early may be suitable if your client plans to begin guaranteed income payments within the first three years after contract issue. Income Horizon: Later may be suitable if your client plans to wait four years or more before beginning guaranteed income payments.
Upon exercise, the guaranteed amount your client will be able to withdraw each year is called the Annual Benefit Amount (ABA). The ABA is a percentage of the contract’s Income Benefit Base. To determine the ABA, multiply the Income Benefit Base by the appropriate ABA percentage based on the age at issue and age at rider exercise of the youngest covered person, single or spousal option, and rider elected.
Both Income Horizon: Early and Income Horizon: Later have an annual fee equal to 0.95% of the Income Benefit Base.4
Annual Benefit Amount Supplement
3 Rider is elected at the time of application and involves an additional fee (a percentage of the benefit base deducted annually from contract value). Lifetime payment guarantees are based on the claims-paying ability of the insurance company, and only payments, not contract values, are guaranteed.
4 The Income Benefit Base is a calculated value used solely to determine the guaranteed lifetime income payment and rider fee and is not available for withdrawal. Prior to exercising the rider, your client can help to maximize their potential guaranteed lifetime income payment by minimizing withdrawals as all withdrawals, including free withdrawals and Required Minimum Distributions (RMDs), are taken from the annuity’s contract value and will also reduce the Income Benefit Base.
Income Strategy Riders
One Rider Must be Selected with Personal Income Annuity® (PIA)
Rider Selection Optional for Personal Protection Choice® (PPC). If Selected, Must Be Combined with Family and/or Care Protection Option
The Income Strategy rider on PIA and the Income Protection Benefit on PPC offer two options: Today and Tomorrow.5 They offer access to guaranteed income payments of a specific amount every year for life once exercised, if certain conditions are met, as well as growth of the potential Income Benefit amount when your client waits to exercise the rider. At issue, an Income Benefit Base is set that equals the single premium.6
Generally, the Today riders are for someone who plans to begin guaranteed income payments soon after issue. When issued, the Income Benefit Base is immediately increased by a 30% Income Benefit Base Bonus. If your client does not exercise the rider or take any withdrawals, the cumulative growth in the Income Benefit Base will be 37.5% after one Contract Year and 45% after two Contract Years. The Tomorrow riders are typically for someone who plans to wait before beginning guaranteed income payments. It includes a Benefit Base Roll-Up equal to 14% in years 1-10, but does not have an Income Benefit Base Bonus.
Upon exercise, the guaranteed amount your client will be able to withdraw each year is called the Annual Benefit Amount (ABA). The ABA is a percentage of the contract’s Income Benefit Base. To determine the ABA, multiply the Income Benefit Base by the appropriate ABA percentage based on the age at issue and age at rider exercise of the youngest covered person, single or spousal option, and rider elected.
The Income Strategy rider on PIA has an additional annual fee equal to 0.95% of the Income Benefit Base. The additional fee on the Income Protection Benefit on PPC varies. The Income Protection Benefit must be selected in combination with either the Care and/or Family Protection benefit. If the Family Protection Benefit is selected in any combination, the total annual rider fee is 1.15% of the benefit base. The total annual rider fee is 0.95% if only the Care Protection Benefit is selected.
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PIA Income Strategy Sample Rider
PIA Annual Benefit Amount Supplement
5 Rider is elected at the time of contract and involves an additional fee (a percentage of your benefit base deducted annually from contract value). Lifetime payment guarantees are based on the claims-paying ability of the insurance company, and only payments, not contract values, are guaranteed.
6 The Income Benefit Base is a calculated value used solely to determine the guaranteed lifetime income payment and rider fee and is not available for withdrawal. Prior to exercising the rider, your client can help to maximize their potential guaranteed lifetime income payment by minimizing withdrawals as all withdrawals, including free withdrawals and Required Minimum Distributions (RMDs), are taken from the annuity’s contract value and will also reduce the Income Benefit Base.
Available Rider Combination Option with Personal Protection Choice
Should your client become confined to a nursing home or require nursing care, the Care Protection benefit provides an enhanced guaranteed income benefit for up to five years. This benefit may be exercised after the second contract anniversary and provides an enhanced withdrawal amount up to a maximum amount (based on issue age of the oldest covered person and qualification level).
The insured must either be confined to a nursing home or unable to perform at least two of six Activities of Daily Living (ADLs) for at least 90 continuous days: bathing, dressing, eating, toileting, transferring, and continence. After 5 years, guaranteed income withdrawals under the selected income protection benefit are still available.7
Nursing Home
Up to age 70: 250% of Income Benefit
Age 71-80: 200% of Income Benefit
Care for a Minimum of 2 out of 6 activities of Daily Living
Up to age 70: 175% of Income Benefit
Age 71-80: 125% of Income Benefit
The additional fee on the Care Protection Benefit on PPC varies. The Care Protection Benefit must be selected in combination with the Income Protection benefit and optionally with the Family Protection Benefit. If the Family Protection Benefit is selected in any combination, the total annual rider fee is 1.15% of the benefit base. If the Family Protection Benefit is not selected, than the total annual rider fee for the combined Income Protection Benefit and Care Protection Benefit is 0.95% of the Income Benefit Base.
7 The Care Protection Benefit Rider is not a qualified Long Term Care benefit under the Internal Revenue Code. It does NOT qualify for preferential tax treatment and does NOT provide health insurance, Long Term Care insurance or Medicaid benefits. Proof of qualification must be submitted each year to receive this benefit. Must be certified by a physician as impaired and unable to perform at least two of the six activities of daily living (ADLs) - eating, bathing, dressing, transferring, toileting and continence. See the contract for qualifying confinement criteria. Care Protection benefit is not available in California or Maryland.
Available Rider Combination Option with Personal Protection Choice
The Family Protection Benefit provides a guaranteed death benefit that may exceed the death benefit provided by your client’s base annuity contract.8 This death benefit will grow each year until your client exercises either the income or care protection benefit, if elected, of this rider. It is also payable to the designated beneficiary in a lump sum upon the death of the covered person or the death of the surviving covered person.
The Family Protection Benefit Base is the guaranteed death benefit and used to determine the rider fee. It has no cash value and cannot be withdrawn from the annuity. On the day the contract is issued, the Family Protection Benefit Base is equal to the premium. The Family Protection Benefit Base grows each year until your client exercises one of the benefits of this rider.9
The roll up amount is equal to the applicable roll up rate multiplied by the initial Family Protection Benefit Base. The roll-up amount is based on attained age of the oldest covered person:
Up to age 70: 10%
Age 71-85: 5%
Roll-ups will be credited annually for up to 10 years, or until the oldest covered person reaches age 85, whichever is first.
With PPC, the Family Protection Benefit must be selected with the Income Protection Benefit and optionally with the Care Protection Benefit. If the Family Protection Benefit is selected in any combination, the total rider fee is 1.15%.
8 The death benefit is not life insurance and is includable in ordinary taxable income to the named beneficiaries when paid.
9 All withdrawals, including guaranteed income withdrawals, are taken from the contract value and will reduce the death benefit and guaranteed death benefit (if elected) in the same percentage as contract value. Over time, contract value and Death Benefit Base could be withdrawn entirely, leaving no death benefit.
Available with Nassau Growth Annuity® | Nassau Bonus AnnuitySM
Nassau Bonus Annuity and Nassau Growth Annuity provide your client options to select from optional guaranteed lifetime income riders, each available for an additional fee of either 0.25% or 0.95%.11 Nassau Growth Annuity offers all four riders. Nassau Bonus Annuity offers Amplified Income Plus and Amplified Income Plus with Rising Income Opportunity.
Performance-Based Annual Growth. All four riders include features to boost potential income payments through a 150% performance-based annual roll-up.12
Guaranteed Growth. The Amplified Income Plus and Amplified Income Plus with Rising Income Opportunity (RIO) riders guarantee that your client’s Income Benefit Base continues to grow by an additional 3% for up to 15 years or upon rider exercise.13
Select the Steady Income or Rising Income Opportunity. Amplified Income and Amplified Income Plus provide a steady guaranteed income amount once exercised. These riders provide a higher initial income benefit compared to the RIO options. The Amplified Income with RIO and Amplified Income Plus with RIO provide the opportunity for income payments to increase after rider exercise. These riders provide a lower initial income benefit compared to the steady income options, but with the opportunity to receive potentially higher income payments in the future based on the contract's performance.
Begin Income When the Time is Right. When your client exercises their rider, the guaranteed lifetime income payment will be equal to the income benefit base multiplied by a withdrawal factor based on the age at issue and age at rider exercise of the youngest covered person, single or spousal option, and rider elected. If your client has elected the Amplified Income with RIO or Amplified Income Plus with RIO their income benefit base has the potential to grow based on the contract’s performance for 15 years after contract issuance, regardless of when their rider is exercised.
Optional Guaranteed Lifetime Income Riders at a Glance
| Amplified Income | Amplified Income with Rising Income Opportunity | Amplified Income Plus | Amplified Income Plus with Rising Income Opportunity | ||
|---|---|---|---|---|---|
| Steady OR Rising Income Opportunity | Steady | Rising | Steady | Rising | |
| Annual Performance-Based Growth12 | 150% of interest credited (dollar amount) less strategy fees, but not less than zero, for up to 15 years | ||||
| Performance-Based Growth and Guaranteed-Growth13 | Guaranteed Growth13 | Guaranteed Growth13 | |||
| Annual Rider Fee (% of Benefit Base)11 | 0.25% | 0.25% | 0.95% | 0.95% | |
The Income Benefit Base is a calculated value used solely to determine the guaranteed lifetime income payment and rider fee and is not available for withdrawal. Prior to exercising the rider, your client can help to maximize their potential guaranteed lifetime income payment by minimizing withdrawals as all withdrawals, including free withdrawals and Required Minimum Distributions (RMDs), are taken from the annuity’s contract value and will also reduce the Income Benefit Base.
10 Available for issue age 80 and below. Additional state variations may apply. See the Rider Disclosure for details.
11 Annual rider fees are calculated as a percentage of the income benefit base and deducted from the contract value. The amount deducted for the rider fee will grow as the income benefit base grows. The rider fee may increase after the 15th contract anniversary, up to the maximum set forth in the contract.
12 For all riders, on each contract anniversary 150% of the contract’s growth, net of strategy fees, but no less than zero, will be added to the Income Benefit Base. For the Amplified Income and Amplified Income Plus riders, this roll-up ends after 15 years or until your client exercises their rider, whichever comes first. For the Amplified Income with RIO and Amplified Income Plus with RIO riders, this roll-up ends on the 15th contract anniversary.
13 The income benefit base will grow at an annual rate equal to 3% of the initial income benefit base, adjusted for any withdrawals, for up to 15 years or until rider exercise (if sooner).
Important Disclosures
For Producer Use Only. Not for distribution to the public.
Product features, rider options, and availability may vary by state. Product sales must be appropriate based on a comprehensive evaluation of the customer’s financial situation, needs, and objectives. Guarantees are based on the claims-paying ability of the issuing Company. Nassau does not provide financial advice or act as a fiduciary in the sale or service of its contracts.
Annuities are long-term products particularly suitable for retirement assets. Annuities held within qualified plans do not provide any additional tax benefit. Early withdrawals may be subject to surrender charges. Withdrawals are subject to ordinary income tax, and if taken prior to age 59½, a 10% IRS penalty may also apply.
Non-Security Status Disclosure – The Contract is not a Security. The Contract is not registered under the Securities Act of 1933 and is being offered and sold in reliance on an exemption therein.
Nassau Income Accelerator (19FIA, ICC19EIAN, 19ISN, 19GLWB2, 22GLWB, 22GLWB1.1, 23GLWB2.1, ICC22GLWB1.1, ICC23GLWB2.1, et al.), Nassau Bonus Annuity (19FIA3, ICC19FIA3, 19GLWB3, ICC19GLWB3.1), Nassau Growth Annuity (19FIA3, ICC19FIA3N, 19GLWB3, ICC19GLWB3.1, 19ECH, ICC19ECH), Nassau Personal Income Annuity (19FIA, ICC19EIAN, 19ISN, 19GLWB2, ICC19GLWB2.1, ICC19GLWB2.2) and Nassau Personal Protection Choice (19FIA, ICC19EIAN, 19RN, 19GLWB2, 19GMDB-S.1, 19EWB, ICC19GLWB2.1, ICC20EWB.1, et al.) single premium deferred fixed indexed annuities are issued by Nassau Life and Annuity Company (Hartford, CT). In California, Nassau Life and Annuity Company does business as “Nassau Life and Annuity Insurance Company.” Nassau Life and Annuity Company is not authorized to conduct business in ME and NY, but that is subject to change. Nassau Life and Annuity Company is a subsidiary of Nassau Financial Group.
Insurance Products: NOT FDIC or NCUAA Insured | NO Bank or Credit Union Guarantee
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