Speak with a Registered Agent: 1-866-223-2121

Speak with a Registered Agent: 1-866-223-2121

Simplified Variable Annuities are All the Rage


By

According to Investment News, ING is replacing their variable annuity product with a more simplified version.  In “ING to sell stripped-down VA with stripped-down commission,” Darla Mercado gives details about the new product.  As of March ING will no longer market its traditional variable annuities.  Their new variable annuities will pay out a level commission that is 75 basis points.  Typical variable annuities have a trail commission of around 1% so ING’s new product will be less than that.

Advisers may first look at these lowered commissions and see less money in their pocket.  But most likely these lower commissions will draw in more customers and be able to generate more sales.  Variable annuity fees for the traditional product have recently hit highs of 3-4% in the market.  ING believes there is a strong possibility that traditional annuities will soon be pushed out of the markets.  They think that the market is going in the direction of these new “stripped-down” annuities with lower fees and commissions.  While ING’s variable annuity has a 5-year surrender period, income receipt can begin immediately.  They also have a feature where the annuity payment increases as the owner’s age increases.

For more information about the product mentioned in this article contact us here:

Newest Blog Posts

Information Request Form

If you have questions or would like more information, please complete this form and a licensed professional will be happy to help.

Broker
Newsletter
Hidden

By providing your information and clicking 'Submit' above, you acknowledge that you have read and agree to this site's privacy policy. You also provide your consent to be contacted at the email address or phone number provided above (including any wireless number) by licensed agents or representatives from or on behalf of AFYI Holdings Group, LLC and other companies to provide the information requested and/or offer annuities or financial products. You understand that these calls or SMS messages may be generated using an automated telephone dialing system, a pre-recorded message, or artificial voice. Consent to receive such messages is not a condition to purchase any goods or services. You may opt out at any time by following the instructions in the messages you receive.  Receiving quotes and information through our website is free, and you are under no obligation to purchase any goods or services as a result of this request. You affirm that you are the subscriber of the provided telephone number or that the subscriber authorized you to provide the number. Message and data rates may apply. AFYI Holdings Group, LLC is committed to respecting your privacy and adhering to all applicable laws and regulations, including the Telephone Consumer Protection Act (TCPA).