MetLife reins in popular VA benefits rider — again

MetLife reins in popular VA benefits rider — again
Regulator filing details second benefits cut since May launch
OCT 11, 2011
MetLife Inc., the largest seller of variable annuities, is pulling back on a popular income rider for its variable annuity. On Oct. 14, MetLife submitted a filing to the Securities and Exchange Commission announcing its intentions to launch the Guranteed Minimum Income Benefit Max III or GMIB Max III, which would give clients access to a 5% income withdrawal benefit. That's down from the 5.5% benefit on the GMIB Max II. If the GMIB Max III is approved, sales of the GMIB Max II will cease. MetLife spokeswoman Holly Sheffer confirmed the change, noting that it's “the company's response to prolonged low interest rates and a challenging capital markets environment.” This update marks the second such product adjustment since the GMIB Max's release in May. The rider attracted a mighty adviser following, as it initially offered a 6% income withdrawal benefit. MetLife's ability to offer an attractive benefit at a time when its largest competitors were clamping down on generous features helped boost the insurer's VA sales to $6.97 billion in the second quarter, reflecting a 55% increase year over year. RELATED ITEM Advisers favorite VA providers The runaway growth led MetLife on Aug. 17 to pull back on income benefits on the GMIB Max to 5.5%, from 6%. That same day, the carrier also filed its GMIB Plus IV, which would provide a 4.5% income benefit, down from 5% in the GMIB Plus III. MetLife will announce its third-quarter earnings today after the market closes and will host its earnings conference call tomorrow morning.

Latest News

Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut
Advisor moves: FiNet practice Merrit Point tucks in $1B Truist team in Florida debut

Elsewhere, a Commonwealth team in Massachusetts converts to Cetera, while Janney draws four former Wells Fargo advisors to its Radnor, Pennsylvania office.

Trader used firm ties to freeze $3.6 million, investors allege
Trader used firm ties to freeze $3.6 million, investors allege

Clients say he copied the boss on his emails - and now they can't touch their cash.

CFTC alleges North Carolina fund manager faked profits, lost $8.6 million
CFTC alleges North Carolina fund manager faked profits, lost $8.6 million

He wired millions to his own accounts and told investors the fund was winning.

OnePoint BFG taps RISR as advisors chase business-owner clients
OnePoint BFG taps RISR as advisors chase business-owner clients

The partnership arrives as most small business owners near retirement age still don't have a formal succession plan in place.

Trust & Will cuts staff amid restructuring, AI disruption
Trust & Will cuts staff amid restructuring, AI disruption

A spokesperson for the estate planning fintech cited AI's reshaping of the industry as Trust & Will restructures its business.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.