April 17, 2012
New Fixed Immediate Annuity Product Provides Guaranteed Income With Flexibility
INCOME Promise SelectSM helps advisors offer clients cash refunds for beneficiaries, liquidity, highly competitive pay out rates, and cost of living adjustment
Columbus, Ohio - As baby boomers face the reality of stock market volatility in retirement, interest in guaranteed retirement income has never been greater. Nationwide Financial today introduced a new product to help advisors with clients who want an income guarantee with the flexibility to adjust for unexpected financial needs that may arise. INCOME Promise SelectSM enhances features of Nationwide Financial’s previously existing INCOME PromiseSM fixed immediate annuity product.
INCOME Promise SelectSM product features include:
- Lump sum cash refunds for beneficiaries of clients who do not outlive their principal investment
- Liquidity options that allow clients to make lump sum withdrawals in the event of emergency or the need for extra cash
- Highly competitive payout rates
- Cost of living adjustment (COLA) option, which now offers up to five percent
- A new, easy-to-use quote and illustration tool to help advisors demonstrate the benefits and features of Income Promise Select.
“Preparing for retirement is more challenging than ever before, given variables like life expectancy, inflation and market volatility,” said Eric Henderson, senior vice president of Individual Products & Solutions for Nationwide Financial. “Income Promise Select helps advisors offer their clients income guarantees while still providing them with the flexibility to adjust their strategy as life’s circumstances change. Our new quote and illustration tool will make it easy for advisors to help their clients understand the retirement income challenge and how this product can be part of the solution.”
Nationwide Financial’s INCOME Promise SelectSM offers advisors an income solution that can be customized to create a guaranteed income stream based on the individual needs of their clients. Advisors can help clients customize their guaranteed income by choosing to create income for an individual or two people (joint annuitants), for a specific period of time or for their lifetime — whichever best fits their client’s needs.
The liquidity feature provides consumers the confidence to annuitize assets, knowing they can still access their money if they need it. This feature is available with any term-certain or cash refund payment option.
The optional cost of living adjustment (COLA) feature enables investors to hedge against inflation by providing future income increases. The newly improved Nationwide Financial product offers four and five percent COLA options in addition to the one to three percent options available previously. Advisors should note that this feature will lower the client’s initial income payments.
“Too many retirement plans fail to take inflation into account,” Henderson said. “The threat of inflation, including skyrocketing health and long-term care costs, is a great reason for clients to consider taking advantage of the COLA feature. This will enhance their stream of income as the cost of goods and services increase during retirement.”
Nationwide Mutual Insurance Company, based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the U.S. and is rated A+ by both A.M. Best and Standard & Poor’s. The company provides customers a full range of insurance and financial services, including auto insurance, motorcycle, boat, homeowners, pet, life insurance, farm, commercial insurance, annuities, mortgages, mutual funds, public and private sector retirement plans, long-term savings plans and specialty health services. For more information, visit www.nationwide.com.