variable annuity FAQs
Frequently asked questions about Ameritas no-load variable annuities
How does my client purchase an annuity?
The process is simple. After your client has reviewed the product and funds prospectuses, have them complete the application and all applicable disclosure forms which we will provide or are available on this site. If they’re transferring funds from an existing annuity, it’s not necessary to send money with the application, but the owner will need to enclose a completed 1035 Exchange/Transfer/Rollover form with the application. Please contact our Advisor Services before your client submits an application to ensure that all of the proper forms are completed, or if you prefer, we can partially complete the paperwork for their signature.
How long does it take to issue the new annuity with Ameritas?
Just two business days after we receive the check and completed application. It may take several weeks to process payments made by rolling over or exchanging another annuity, depending on how long it takes the other insurance company to execute the exchange or rollover.
How do I view my clients' account values?
You’ll be able to view all of your clients’ policies online once the contracts are issued and if the clients have completed the appropriate authorization form. If you have any questions, contact our salaried associates at 1-800-555-4655 for assistance.
What are the ticker symbols for the funds in the annuity? I'd like to follow the performance.
Since the investment options in the annuity are not mutual funds, there are no ticker symbols to follow. However, we update investment option performance on our website every day.
Do I get an annuity statement?
Yes, automatically. Each calendar quarter a statement is mailed to you and your client. A summary annual statement is also delivered each contract year. You'll also receive a confirmation statement anytime your client invests more money in their annuity or anytime a trade is made within the annuity.
Can my client borrow from his annuity?
Instead of a loan, the owner can access part of the value of the annuity, free of charge, through partial withdrawals.
IRAs have minimum required distributions starting at age 70½. Do annuities have similar requirements?
If the annuity is part of an IRA, the same requirements apply. If the annuity is a nonqualified plan, no IRS distribution rules apply.
Can variable annuity policies be linked to a broker-dealer managed account?
You bet. Ameritas no-load variable annuities are designed to fit seamlessly in to a managed account program.
frequently asked questions about the Guaranteed Lifetime Withdrawal Benefit2 rider
What is the GLWB2 rider?
The purpose of the rider is to provide a guaranteed source of income for your clients, regardless of the policy value, without annuitizing. Withdrawals will continue for the lifetime of your client or the last surviving Covered Person(s). Your client remains invested in variable subaccounts and chooses from one of the permitted GLWB models.
Who are the Covered Person(s)?
Covered Person(s) include:
- The owner(s) of the policy, or
- The annuitant(s) if the owner of the policy is a non-natural person, such as a trust, or
- The spouse(s) at the time the joint spousal option is selected.
How does the GLWB2 rider work?
There are three distinct phases to the rider:
- Your client may choose to elect the rider at time of application as long as they are between the ages of 50 and 85 when the policy is issued
- If the rider is elected, the values of the policy will be tracked after issue to calculate the future base for taking guaranteed withdrawals
- Your client will have downside protection and growth potential, provided they pay the rider charge
- There are some restrictions on withdrawals
- Your client chooses from one of the permitted Non-Program GLWB models
- There will be a rider charge deducted from the policy value
- Your client chooses when to end the Accumulation Phase and enter the Withdrawal Phase
- Your client may move to the Withdrawal Phase from the Accumulation Phase as soon as 30 days after policy issue
- On the date your client enters the Withdrawal Phase, the Benefit Base is calculated
- Your client starts taking withdrawals up to the Lifetime Withdrawal Benefit Amount (LWBA), which is calculated as a percentage of the Benefit Base and varies by age
- There are restrictions imposed on withdrawals greater than the LWBA, and withdrawals greater than the LWBA will reduce the Benefit Base
- Your client must choose to invest in one of the permitted Non-Program GLWB models
- The rider charge will continue to be deducted from the policy value
In this phase, the Lifetime Withdrawal Benefit Amount payments continue to be made, although the policy value has been reduced to zero. The Guaranteed Phase is described fully in the prospectus.
Can the joint spousal option be elected on qualified plans?
Yes, for IRA plans.
How will my client be charged?
There will be a rider charge deducted monthly from the policy value. Annual charges for the GLWB2 rider are:
- 1.20% current (2.00% guaranteed maximum) for the single life option
- 1.50% current (2.50% guaranteed maximum) for the joint spousal option
Are there investment option restrictions?
When the policy is activated, your client can choose from one of the permitted GLWB models.
Can withdrawals be made for investment advisory fees if the rider is elected?
No. This is because during the Accumulation Phase, any withdrawal negates the guaranteed 5% roll up, and during the Withdrawal Phase, an additional withdrawal for advisory fees could result in an excess withdrawal, which would affect the guaranteed withdrawals for the client going forward.
Do clients have to elect the GLWB2 rider?
The rider is optional.
Can clients terminate the GLWB2 rider?
Any time, just give written notice. However, once the rider is terminated, it cannot be added back to the policy.
What happens at death?
Upon the death of the last Covered Person(s), the beneficiary can elect to receive either the Death Benefit as provided by the policy or the distribution of the Remaining Balance accomplished through the payment of the LWBA until the Remaining Balance is zero. If the last surviving Covered Person(s) dies and the policy value is zero as of the date of death, any Remaining Balance will be distributed to the Beneficiary through the payment of the LWBA until the Remaining Balance is zero. (Note: there is no guarantee that a policy will have a Remaining Balance on the death of the last Covered Person.)