Nationwide, Midland to Offer Index Annuity
Nationwide announced that it will begin selling Midland National Capital Income, a fixed indexed annuity (FIA) for fee-only advisors, in an effort to enhance the company’s suite of advisory FIA options. Midland Advisory, part of Midland National Life Insurance Company, will distribute the FIA alongside Nationwide, expanding their product offering beyond their current advisor network.
“Working together with Midland Advisory, Nationwide will now be able to offer another guaranteed product for advisors that will help them bridge the retirement gap for their clients.”
Eric Fry, Nationwide
A competitive income solution specifically designed for advisory practices, Capital Income provides guaranteed lifetime income through a built-in Guaranteed Lifetime Withdrawal Benefit (GLWB) for an annual 1% charge. It also features an embedded ADL Benefit Rider, known as the health-activated income multiplier, which allows a client to double their annual lifetime payment for five years if they can no longer perform two of six listed “Activities of Daily Living,” or ADLs.
“As we enter a period of peak retirement, many pre-retirees are seeking out advisors and solutions to ensure they have the resources they need to secure peace of mind for their golden years,” said Eric Fry, associate vice president of Nationwide Advisory product development. “Working together with Midland Advisory, Nationwide will now be able to offer another guaranteed product for advisors that will help them bridge the retirement gap for their clients.”
Two factors that distinguish Capital Income from other advisory FIAs, said Fry, are that there is no waiting period to start income, as long as all payees meet the age requirements, and that the ADL benefit is available even after the account value is depleted.
“One of the biggest challenges in financial planning is bridging the transition from funding retirement to creating a solid decumulation strategy that both the advisor and client can trust. Advisors don’t have as many options for client retirement income as they do for accumulation,” said Cooper Sinclair, head of Strategy for Midland Advisory at Midland National. “With Nationwide and Midland Advisory working together, we expect to bring annuity benefits to more financial advisors and their clients.”
Midland Advisory, part of Midland National Life Insurance Company, specializes in retirement solutions aimed for registered investment advisors (RIAs) and their clients.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
