8 notable trends in the VA business
2. The 4% solution
MetLife Inc. shook up the VA industry in January when word got out about its Guaranteed Minimum Income Benefit Max V, a product feature that will raise clients’ benefit base by 4% each year and allow 4% dollar-for-dollar withdrawals. Though the insurer predicts that 4% is as low as it will go with this current VA design, other competitors will follow, given today’s low rates. “I expect to see more companies go down to 4%. There is no question that the thinking of the population has changed: We’re a society that’s looking at some very tarnished golden years,” said Joan Boros, who is of counsel at Jorden Burt LLP. “Given the market place, a 4% guarantee isn’t that unappealing.”
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