Market Recovery Program
It's legal, it works, and it's guaranteed!
Chapter 15
INCREASING ANNUAL PAYOUTS?
You’ve told us that the Guaranteed Annual Payment schedule is set-in-stone, so to speak; that is, the schedule is set up at the time the funds are invested into the Indexed Annuity with Income Rider and its payouts guaranteed regardless of how the underlying investment -- the Indexed Annuity -- performs.
How is it possible to have increasing lifetime income payouts; that is payouts that would exceed what is guaranteed on the schedule?
Earlier discussions centered around the underlying investment -- the Indexed Annuity -- producing an average rate of return of about 6%. And, again, it is important to stress here that this is not a guaranteed rate of return. The Indexed Annuity may return less than 6%.
However, it is possible that the Indexed Annuity performs better than that. It is also possible that it can perform better than the 8% rate at which that the funds in the Income Account will accumulate. If that happens then the value of the Income Account will step-up to the what it would be had the funds accumulated at the higher interest rate. This, in turn, would increase the amount of the payouts in direct proportion.
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