After purchasing ING Renuity, if higher interest rates are offered for new issues of the product, customers can make a one-time election to lock in a higher rate without penalty through its “re up” feature, the announcement said. While surrender charges apply for the first five contract years, ING Renuity offers a return of premium provision prior to electing to re up which ensures clients will, at a minimum, get back the money they placed in the contract, the company said
The product is designed for individuals rolling over retirement plan funds, but is also available as a non-qualified contract. For non-qualified assets, the product allows individuals to defer paying income taxes on the money they earn within the annuity until it is withdrawn.
ING Renuity has a $50,000 minimum initial deposit, with additional deposits of $10,000 or more allowed during the first year of the contract. Individuals can access their money through systematic withdrawal options or through a free withdrawal of 10% of the account value each contract year.
ING Renuity is distributed by ING Financial Advisors Inc.