ING Variable OUT OF BUSINESS IN FLORIDA

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i-add-alpha's picture
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Joined: 2009-04-16

I got the word Monday from the internal that ING is no longer offering VA's to wires in Florida.  The quick reason is that going forward they aren't going to allow the 3% fixed bucket as an option nationwide.  However, Florida dept. of insurance requires that any VA's sold in Florida offer the option of the fixed bucket.  So, no new business going forward for the foreseeable future.
 
 

nestegg's picture
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Joined: 2007-06-14

Odd...since i know of a bazillion carries who have reduced the fixed rates below 3% in Fla for many many years now....

i-add-alpha's picture
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Joined: 2009-04-16

NestEgg, this is an ING decision. 
 
Florida, in an effort to protect the consumer, requires the fixed bucket option to be available in all carriers' VA policies written in Florida.
 
First, ING has been waaayyy too generous with the benefits in their riders for years and they don't want to allow you to grow your benefit (income) base at 7% compounded when the underlying investment is at 3%.
 
Plus for the policies without riders (read low expenses) they can't produce 3% in this interest environment.
 
Third, the assets in fixed buckets are held at the carrier whereas the variable subaccounts are held at American Funds (for example).
 
I'm not sure what the longterm plans of ING or other foreign banks are anymore.  This is an experiment for them that is a result of buying Aetna.  Take a look at recent activity of UBS for example.
 

sable's picture
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Joined: 2010-10-05

Seriously agree. after ING's financial troubles i would be pretty circumspect

Diana's picture
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Joined: 2011-12-29

i got to know about bazillion carries, they have reduced the fixed rates below 3%.

sarahdavid's picture
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Joined: 2012-02-01

Yes Diana Agreed with you but its been so long, I mean they have reduced those fixed rates for quite a long time now.

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