IncomeProtector Rider
The IncomeProtector Withdrawal Benefit is an optional living benefit rider that can be added to your client's ING Annuity for an annual charge. This benefit provides a flexible, guaranteed income during retirement.
“guaranteed lifetime income without annuitization ”
It provides fexibility and choices that put your client in control of determining when and how much retirement income they receive.
IncomeProtector Highlights :
- 7% Compounding Roll-Up during the first 10 years of the Deferral Phase
- Annual Ratchet during both the Deferral and Withdrawal Phase
- 100% Return of Rider Charges at Death
- Guarantees your client can start or stop their income at any time until the contract is annuatized
- Maximum Issue Age is 80
- Annual cost is .40% of the Guaranteed Withdrawal base
Definitions:
7% Compounding Roll-Up - During the first 10 years of the Deferral Phase, the Guaranteed Withdrawal Base will be automatically increased by 7% every year.
Annual Ratchet - If the Accumulation Value is even higher than the Guaranteed Withdrawal Base at the contract anniversary, your Guaranteed Withdrawal Base will be automatically reset ot the higher value.
Deferral Phase - The time period from when the rider is activated until the first withdrawal designated as a Maximum Annual Withdrawal (MAW).
Guaranteed Withdrawal Base - Equal to all of your premiums (and any premium bonus, if applicable) accumulated with the 7% Compounding Roll-Up (first 10 years of Deferral Phase) with an Annual Ratchet.
Maximum Annual Withdrawal (MAW) - The maximum amount of guaranteed withdrawal base that you can withdraw every year.
Withdrawal Phase - The time period beginning with the first withdrawal designated as a MAW.
Questions & Answers:
Q: When can I take my first withdrawal?
A: You can start or stop taking withdrawal at any time until the contract is annuitized. The first MAW withdrawal taken will begin the Withdrawal Phase.
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Q: What happens once I have exhausted my contract's accumulation value?
A: As long as you have not taken any excess withdrawals and have not annuitized the contract, you may take an amount up to your MAW every year for the rest of your life.
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Q: Does my contract have to be jointly owned if I elect the ING Joint IncomeProtector Withdrawal Benefit?
A: The ING Joint IncomeProtector Withdrawal Benefit offers the option for a spouse to continue the contract and withdrawals if the contract owner passes away. Your contract can be jointly owned by both husband and wife; or, it can be a single owner contract with the owner's spouse listed as the sole beneficiary.
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Q: Can I take less or more than my MAW each year?
A: You can certainly take less than your MAW in a given year. In fact, you can skip taking a withdrawal altogether if you choose. However, if you take more than your MAW, your income will be reduced pro rata (by the same percentage that the excess withdrawal reduces your Accumulation Value). If excess withdrawals reduce your Accumulation Value to zero, your income will stop and the contract and rider will end.
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