Roll-Ups Grow to 7%.(SPOTLIGHT)(ING U.S. Financial Services)(Nationwide Financial Services Inc.)(Brief article)

Best's Review, November, 2007 by Panko, Ron

Nationwide Financial Services and ING U.S. Financial Services each recently introduced minimum 7% annual roll-ups on their variable annuity income benefit bases. Benefit bases are shadow accounts used only to determine future guaranteed income. Most insurers offering roll-ups guarantee 5% annually. Through benefit bases, policyholders can grow the size of guaranteed lifetime withdrawals even if their annuity account values fall. Nationwide guarantees 7% simple interest annually for 10 years or until the first withdrawal as an enhancement to its Lifetime income Rider. The rider guarantees lifetime income through withdrawals of up to 7% of an income base that will never decrease. ING's LifePay Plus provides the guarantee along with an automatic quarterly ratchet of the...