New rider offers ability to increase retirement income every year for life, and the benefit may offset effects of inflation on retirement lifestyle
CINCINNATI, Oct. 03, 2022 (GLOBE NEWSWIRE) — Ohio National Financial Services, Inc. advances its ONdex fixed indexed annuity products with a new rider that guarantees income growth opportunities in retirement. With the Ion Guaranteed Lifetime Withdrawal Benefit Rider (GLWB) from Ohio National, the annuitant’s income increases every year regardless of market performance. This guaranteed growth may help keep retirement assets ahead of inflation and may help retirees maintain their standard of living.
The value of the Ion GLWB increases by 6% of its original value each year that no withdrawals are made during the first 20 years. After this 20-year period or in any year the annuitant makes a withdrawal, the Ion will still grow by 3%. Since income is based on the rider’s value, the annuitant’s income will increase as well — every year for life — provided withdrawals do not exceed the amount allowed under the terms of the rider.
“The new Ion rider makes our ONdex fixed indexed annuity products even more powerful from a retirement income perspective,” said Jay Bley, senior vice president, annuity distribution and sales. “Our customers can now get steady, guaranteed growth to support their retirement lifestyle for as long as they live. It’s one more way we can help them meet the future with confidence and peace of mind.”
The Ion is available in single life and joint life versions. The single life Ion guarantees income for the life of the annuitant, the person upon whose life the contract is based. The joint life version guarantees income for the lifetime of the annuitant or the annuitant’s spouse, whichever is longer
The Ion GLWB for ONdex fixed indexed annuities is available now through independent financial professionals in all states except NY.
Fixed Indexed Annuities
Fixed indexed annuities (“FIA”) are long-term investment vehicles designed to accumulate money on a tax-deferred basis for retirement purposes. Upon retirement, FIAs may provide an income stream or a lump sum. If you die during the accumulation or payout phase, your beneficiary may be eligible to receive any remaining Contract Value.
An FIA is not a registered security or stock market investment and does not allow direct participation in any stock or equity investments, or index. The index used is a price index that tracks market performance and does not reflect dividends paid on the underlying stocks. Indices are typically unmanaged and are not available for direct investment.
FIAs provide the potential for interest to be credited to the annuity, based in part on the performance of the specified index, without the risk of loss of premium due to market downturns or fluctuation because of a contractual floor.
Guarantees are based upon the claims-paying ability of The Ohio National Life Insurance Company. Guarantees do not apply to the investment performance of any chosen index.
Product, product features and rider availability vary by state. Certain features may vary by broker-dealer. Issuer not licensed to conduct business in NY.
Early withdrawals or surrenders may be subject to surrender charges. Withdrawals are also subject to ordinary income tax and, if taken prior to age 59½, a 10% federal tax penalty may apply. Tax rules require that withdrawals be taken first from any unrealized gain in the contract. Federal and state tax laws applicable to this product are subject to change. You are encouraged to consult your personal tax adviser for further information.
There is no additional tax-deferral benefit for contracts purchased in an IRA or other tax-qualified retirement plans because such retirement plans already have 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.
Neither asset allocation nor diversification assures a gain or protects against a loss in declining markets.
About Ohio National
Since 1909, Ohio National has been committed to helping individuals, families and businesses protect what matters most. Through our network of financial professionals across 49 states (all except New York), the District of Columbia and Puerto Rico and through affiliated operations in South America, we provide the insurance products that help our policyholders achieve financial security and independence. As of December 31, 2021, its affiliated companies have $40.8 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Recognized as a Leader in Workplace Equity by Ellequate. Please explore ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook and YouTube.