Ohio National’s new fixed indexed annuity rider offers guaranteed rising retirement income
June 6, 2017 by Ohio National
Cincinnati — For individuals who are currently at or nearing retirement age and looking for a way to increase their retirement income1, Ohio National Financial Services has introduced a new ONdex fixed indexed annuity (FIA) rider.
The optional Income Accelerator Guaranteed Lifetime Withdrawal Benefit (GLWB) rider guarantees that as long as withdrawals never exceed the allowed amount, the income it provides will increase each year. In fact, the optional Income Accelerator rider features a distinguishing “Power of 3 Guarantee” that offers three possible ways for income to grow:
1. Guaranteed minimum growth. No matter what the markets are doing, and even if income withdrawals are taken, the rider’s value is guaranteed to increase by at least 3 percent2 every year as long as the contract is active. And because income is based on the rider’s value, a higher rider value means more income.
2. Interest credits plus. In any of the first 20 index years, where no withdrawals are taken, the rider’s value will grow by the greater of the interest credited to the contract’s value plus 3 percent2or the interest credited to the contract value multiplied by 3, up to a maximum of 10 percent.
3. Annual Step-Up opportunities. At the end of each index year, the rider’s value and the contract’s value are compared. The rider’s value will step-up to the contract’s value if it’s higher, increasing income.
“The optional Income Accelerator rider may provide more certainty for individuals concerned about their retirement assets generating enough income to meet their needs,” said Michael J. DeWeirdt, CFA, FRM, Ohio National’s senior vice president, annuities strategic business. “Because it guarantees income for life that will rise for the duration of the contract, it’s capable of helping to address longevity and inflation risks, two challenges that all retirees face. As a strong addition to our annuity line of business, it can offer protection in different market environments and represents Ohio National’s next step into the rapidly expanding fixed indexed annuity market.”
1 Income means: (1) during the accumulation phase, the amount you withdraw from your annuity in a contract year; (2) during the Lifetime Annuity Period, the amount you receive in annuity payments each year.
2 As a percentage of the initial rider value. The amount to which percentages are applied will be adjusted for step-ups or excess withdrawals.
Guarantees are based upon the claims-paying ability of The Ohio National Life Insurance Company. Guarantees do not apply to the performance of any index choice.
There is no additional tax-deferral benefit for contracts purchased in an Individual Retirement Account (IRA) or other tax-qualified plan because these are already afforded tax-deferred status. An annuity should only be purchased in an IRA or qualified plan if you value some of the other features of the annuity and are willing to incur any additional costs associated with the annuity.
Variable annuities are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, variable annuities may pay out an income stream of a series of payments or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining Contract Value.
Tracing its corporate origins to 1909, Ohio National markets a variety of insurance and financial products through more than 50,000 representatives in 49 states (all except New York), the District of Columbia, Puerto Rico and through affiliated operations in South America. Additional subsidiaries operate in New York and Connecticut. As of December 31, 2016, its affiliated companies have $41.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Ohio National is proud to be named a “Top Workplace” in Cincinnati for seven consecutive years by Enquirer Media (June 2010-2016) and employs more than 1,300 associates. Please visit ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook, Twitter and Instagram.
