Not at all. There are some cases (and they have been discussed on this forum) where the income rider can pay more than a DIA. You just need to run quotes for both and see which one wins. And yes, the underlying annuity is useless, except as a vehicle for the income rider. If you are not interested in turning on income, then FIAs and VAs are poor options.I don't see your fascination with income riders. They are a high expense that makes the underlying variable annuity or FIA useless. If you want that function just buy a DIA for less.
For a MYGA, you can take the proceeds as a cash lump sum at the end of the term, but there is a tax penalty if you are under age 59.5. SPIAs, DIAs, and QLACs are irrevocable. Variable and index (FIA) can also be used to take cash after the surrender period. However, I would not buy one of those except for the potential income riders.
I think the best option for what you describe is a MYGA assuming you are over 59.5 or are willing to roll it over at the end of the term into another MYGA until you reach 59.5.
Statistics: Posted by Harmanic — Sat Jan 25, 2025 8:48 pm — Replies 21 — Views 1304