ING is introducing two new fixed index annuities that are registered as securities products with the U.S. Securities and Exchange Commission.
Called ING Select Multi-Index 5 and ING Select Multi-Index 7, both are registered FIAs that use a modified single-premium deferred annuity chassis. The issuing company is ING Life Insurance and Annuity Company, Windsor, Conn., a U.S. business unit of ING Groep N.V., Amsterdam (NYSE: ING).
In each policy, the policyowner can choose to link the contract’s annual interest crediting, in part, to any combination of the S&P 500 Index, S&P MidCap 400 Index, Russell 2000 Index and EURO STOXX 50 Index. Investors are not invested directly in the indexes, the company says.
The four indexed options have an interest rate floor of 0, according to a spokesman. That means “you can’t lose money” in any of these options, he says.
Both policies also offer a traditional fixed-rate interest crediting strategy, the spokesman says. The crediting strategy has a guaranteed minimum interest guarantee of 1%.
Policyholders can put money into the fixed strategy, the indexed strategy or both, and in any combination of the indexed options, he says.
ING Life and Annuity markets a registered fixed annuity, too.
In addition, the company says it will continue to market its non-registered FIAs, which are issued by ING USA Annuity and Life Insurance Company, Des Moines, Iowa, and ReliaStar Life Insurance Company of New York, Woodbury, N.Y.
“The expertise we have gained in the non-registered fixed index market has allowed us to identify new opportunities for our registered products where our non-registered products are not being sold,” says Lynne Ford, chief financial officer of ING Financial Solutions, a business unit formed by the late 2009 merger of ING’s U.S. operations with its annuity and rollover businesses.
All guarantees are based upon the financial strength and claims-paying ability of the issuing company, ING says.