NU Online News Service, May 21, 4:15 p.m. – ING U.S. Financial Services, Atlanta, has introduced two new fixed annuities.
The annuities are the ING SmartDesign Single Premium Fixed Annuity and the ING SmartDesign Flexible Fixed Annuity.
The single-premium annuity has six guaranteed interest rate periods for investors to choose from, ranging from five years to 10 years.
Each period has a different guaranteed interest rate. The current 10-year rate is 6.4%, ING says.
The flexible fixed annuity allows investors to choose between a set guaranteed interest rate option for a one-year, three-year or five-year term, and an increasing guaranteed interest rate option for a five-year, six-year or seven-year term.
With the set guaranteed rate option, the same interest rate is guaranteed for the length of the guarantee period selected.
With the increasing guaranteed rate option, the rate is guaranteed to increase for the length of the term selected.
Both the single-premium and flexible annuities offer a restricted beneficiary provision that allows investors to provide an income for a spouse or guarantee a lifetime income for a child with special needs.
The restricted beneficiary provision also lets investors control the frequency of payments, the duration of payments and the amount paid as an initial sum.
ING expects to sell a high percentage of the new annuities through banks, the company says.
ING U.S. is a unit of the ING Groep N.V., Amsterdam.