"For income only" includes cannibalization of principle... BFD. You can have "50% income" if you don't mind wiping out your principle* in 2 years. * The concept of "principle" is irrelevant once a contract is annuitized... all you get is the company's "unsecured promise to pay". Annuites are (1) complex, and (2) slanted in value toward the company. Caveat Emptor!
If you die, w/o a death benefit rider, you get the principal less withdrawals. With a death benefit rider, you'd be locking in higher achieved values during the lifetime of the contract. If so inclined, you can get around the death benefit rider by doing the shortest contracts (usually 3-4 years) and rolling the contract to another (or even back into the same, but a new one). The VA's annual withdrawal amount is usually equal to the GRIP/GRIB (5-7%). AFAIK, if I needed income, I 'd take withdrawals until the sub account value was nearly depleted and then annuitize.
As I previously stated: modern annuties don't annuitize! They have guaranteed withdrawal benefits (riders). Yes you eat principal or gains if you have any. Yes the are complex. Yes they are profitable. Why else would they be sold??? But people love the idea of having a check that's "guaranteed" by a highly rated insurance company.
Like I said, annuities are "complex". Your understanding needs to be better if you get serious money involved.
Wiping out your principal in two years? If you believe that then you also don't understand variable annuities.
Ever get the feeling you're talking to someone with tunnel vision? Since you're far more proficient at explaining the details than I, I'm going to leave it to you to argue with the misinformed.
whats so difficult to understand. they market a 6% guarantee. then they charge 1% to manage it. but wait do you want your heirs to get a benefit if you die?that option will cost 1% more and on and on with fees, net result you recieve about 3% and you lost control of your money. why? here is a similar product to what my friend bought. i dont remember all the exact details anymore it was 4 years ago. do some research and get back to me with your analysis: http://www.axa.com/lib/en/uploads/presspresentation/2004/ny/AXA_Presse_200409_NY_Annuity.pdf
I've had them and invested in them for 20 years for clients... likely I understand them better than you. Hint: "Whithdrawal" and "payment" are not the same as "return".