Annuities
Annuity Living Benefits
Variable annuities are unique in offering tax deferral, professionally managed investments and living benefits all in one product. Living benefits, optional and available for an additional fee, are guarantees to protect your accumulated assets during your lifetime and provide a regular stream of income during retirement. These guarantees are backed by the claims-paying ability of the issuing insurance company.
It's possible to choose among a variety of riders that provide guarantees to protect your principal, your withdrawal amounts during the payout phase or the income base that determines the size of your lifetime income stream.
Guaranteed Minimum Withdrawal (GMWB)
This benefit guarantees the return of principal through withdrawals of a fixed percentage of principal during a fixed period of time until the amount of the original investment has been withdrawn. Some benefits also guarantee annual withdrawals for life, or for the life of the owner and the owner's spouse, in addition to guaranteeing the principal.
Guaranteed Minimum Income Benefit (GMIB)
At purchase, the insurance company guarantees income through a fixed annual compounding rate. After a vesting period, if the contract is annuitized, the guaranteed income base is used to calculate minimum monthly payments, regardless of market performance. If contract value grows, the income stream may be higher—but never lower—than the guaranteed amount.
Guaranteed Minimum Accumulation (GMAB)
This benefit guarantees return of your initial investment, regardless of actual market performance, provided you hold the investment for ten years and make no withdrawals during that time.
Our firm and its affiliates are not in the business of providing tax or legal advice. These materials and any tax-related statements are not intended or written to be used, and cannot be used or relied upon, by any such taxpayer for the purpose of avoiding tax penalties. Tax-related statements, if any, may have been written in connection with the "promotion or marketing" of the transaction(s) or matters(s) addressed by these materials, to the extent allowed by applicable law. Any such taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Variable annuities are sold by prospectus only, which contains complete information on charges and expenses. Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information and can be obtained by contacting your Financial Advisor advisor. Please read the prospectus carefully before you invest.
Morgan Stanley Smith Barney LLC offers insurance products in conjunction with SBHU Life Agency, Inc. Citi Personal Wealth Management, MyFi, and Citi Private Bank offer insurance products in conjunction with Citigroup Life Agency LLC.
Please contact your advisor for more information about available products, services and research.
For more information, please contact your Financial Advisor.