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

The power of cultivating personal connections
The power of cultivating personal connections

Relationships are key to our business but advisors are often slow to engage in specific activities designed to foster them.

A variety of succession options
A variety of succession options

Whichever path you go down, act now while you're still in control.

'I’ll never recommend bitcoin,' advisor insists
'I’ll never recommend bitcoin,' advisor insists

Pro-bitcoin professionals, however, say the cryptocurrency has ushered in change.

LPL raises target for advisors’ bonuses for first time in a decade
LPL raises target for advisors’ bonuses for first time in a decade

“LPL has evolved significantly over the last decade and still wants to scale up,” says one industry executive.

What do older Americans have to say about long-term care?
What do older Americans have to say about long-term care?

Survey findings from the Nationwide Retirement Institute offers pearls of planning wisdom from 60- to 65-year-olds, as well as insights into concerns.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound