today received approval from the state of New York to market its "modular" variable annuity in that state. When sales begin on Tuesday through independent financial planners and banks, Nationwide Financial's product will also offer a credit feature.
Nationwide Financial's product approach also discloses fees for the credit feature and for several other modular options that customers can add to their annuity. A spokesman for the firm said that the base product costs 95 basis points and the credit module, which consumers can tack on, will cost an additional 45 basis points. The modular variable annuity gives consumers the choice of nine different features which they can pick and choose to add on to the annuity.
The credit feature provides a 3% credit on all purchases made during the first year. Nationwide's credit offering is structured as a separately priced contract option rather than being built into the product as a base feature. The 45 basis points will diminish over seven essentially making it a free feature to consumers by the eighth year of the contract.
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