The "rollup period reset" is a feature found in some annuity contracts, particularly in fixed indexed annuities with an income rider. This feature allows the annuity's guaranteed income value, or the benefit base used to calculate lifetime withdrawal amounts, to reset to a higher value if the underlying index performs well.
The "rollup period reset" is a feature found in some annuity contracts, particularly in fixed indexed annuities with an income rider. This feature allows the annuity's guaranteed income value, or the benefit base used to calculate lifetime withdrawal amounts, to reset to a higher value if the underlying index performs well.
Essentially, if the contract value of the annuity increases due to positive market performance, the income base can be reset to this higher value, which then becomes the new baseline for future income rollup calculations. This reset typically occurs at the end of a contract year and can provide the annuity owner with a higher guaranteed income stream.
The rollup period reset can be a powerful tool for retirees, as it offers the potential for their retirement income to increase with market gains.
The "rollup period reset" is a feature found in some annuity contracts, particularly in fixed indexed annuities with an income rider. This feature allows the annuity's guaranteed income value, or the benefit base used to calculate lifetime withdrawal amounts, to reset to a higher value if the underlying index performs well.
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