Ohio National introduces new Fixed Indexed Annuity

[DHK]

Ohio National Introduces New Fixed Indexed Annuity

CINCINNATI, May 04, 2020 (GLOBE NEWSWIRE) -- Ohio National Financial Services is pleased to announce it has launched the ONdex annuity, a new single premium fixed indexed annuity designed to help customers reach their long-term retirement goals. The ONdex annuity provides customers with the opportunity to accumulate assets by earning tax-deferred interest based, in part, upon the performance of a market index.

“An ONdex annuity can be a good fit for someone who is retired or close to retirement age because it provides growth opportunities without the risk of losing principal from market downturns. It may be a good option for customers looking for a fixed income alternative that could potentially outperform CDs and other fixed investments.” said Michael J. DeWeirdt, CFA, FRM, Ohio National’s Senior Vice President and Chief Product Officer. “This annuity is another way we can fulfill our mission to help clients achieve financial security and independence today —and for generations to come.”

Highlights of the new ONdex fixed indexed annuity include:

• Ability to participate in market appreciation with protection from market losses

• Built-in Guaranteed Accumulation Protection benefit for a guaranteed minimum amount of growth

• The choice of four quality index-based allocation options and a fixed accumulation account

• 7- and 10-year surrender periods to match clients’ liquidity needs and anticipated retirement timeline

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, 2019, its affiliated companies have $40.5 billion total assets under management. Products are issued by The Ohio National Life Insurance Company and Ohio National Life Assurance Corporation. Please visit ohionational.com for more information and for the latest company updates, connect with Ohio National on LinkedIn, Facebook and YouTube.

This product does not offer an investment in the market or in any particular index.

This material is for general use with the public and is not intended to provide investment, insurance or tax advice for any individual.

I don't see anything particularly noteworthy about this (other than LACK of lifetime income benefit riders) - at least according to this announcement. Ohio National certainly won't overcome its reputation from its annuity past with this product.

Let the jokes and ridicule commence!

 

[Tahoe Ray]

Let the jokes and ridicule commence!

Don't take the trail option.

Edit: Gave you a like back for being a good sport. We're not going to see any compelling income riders launched anytime soon. You were around in 2008..."de-risking" is a real thing and many carriers are already doing it. ON can be blamed for a lot of things but that isn't one of them.

 

[DHK]

I'm in process of getting contracted with Athene so I can sell their Agility 7 & 10 contract - primarily for their 10% withdrawal based on initial contract values or higher anniversary values.

Now, if this new Ohio National FIA will do withdrawals like that... that'll have my attention - particularly for funding life insurance premiums.

Otherwise, there's nothing that stands out on this.

But we'll see. My Ohio National selling contract should be finalized in the next few days.

 

[Tahoe Ray]

I'm in process of getting contracted with Athene so I can sell their Agility 7 & 10 contract - primarily for their 10% withdrawal based on initial contract values or higher anniversary values.

Agility is a long wait product for lifetime income...are you talking about general withdrawals?

Are you talking about 100k premium and allowing 10k in w/ds regardless of account value?

This product was created to fight Allianz (who has/had a similar provision).

 

[DHK]

Correct - not looking to use it for lifetime income, but for using the 10% withdrawal provision to fund a life policy over 7-10 years. And yes, I asked my IMO to check to make sure there shouldn't be any compliance issues - as long as the product was properly sold, explained, and premiums are adjusted for after-tax premiums. It shouldn't be an issue... but we'll see.

The way I look at it, it's a way to double my total commission income from working with The Breakaway League by placing both annuity cases and life insurance cases.

But we'll see.

 

[Tahoe Ray]

The way I look at it, it's a way to double my total commission income from working with The Breakaway League by placing both annuity cases and life insurance cases.

But we'll see.

Your trade-off will be that a SPIA would be an easier explanation to the client (and would generate a slightly higher life premium, but then again, you'd double your comp on the annuity side) although you could (should) certainly have $$ left over with Agility to redeploy somewhere else.

ON needs to add a commissionable premium deposit account (or maybe they have one). That would be ideal for both you and the client.

 

[DHK]

Just to say that I've looked at the specs of the ONdex Annuity 7 & 10... and there's nothing special about them. Very basic and plain vanilla.

There's more competitive products elsewhere... so it makes me wonder why ONFS even bothered with developing these annuities? That, or I'm missing something (which can happen to me easily).

 

[AZSHIS]

Just to say that I've looked at the specs of the ONdex Annuity 7 & 10... and there's nothing special about them. Very basic and plain vanilla.

There's more competitive products elsewhere... so it makes me wonder why ONFS even bothered with developing these annuities? That, or I'm missing something (which can happen to me easily).

They were running out of items to stuff into the four times a month mailings that they send to anyone who ever contracted with them. I have not written an ON policy in 7 years and I still receive their mailings.

 

[pfg1]

They were running out of items to stuff into the four times a month mailings that they send to anyone who ever contracted with them. I have not written an ON policy in 7 years and I still receive their mailings.

I know - its hard to believe how much stuff they send every agent.

My guess is they came out with a new product (that they know isn't really anything special, and probably won't sell much) to look like they are making progress amid their VA debacle, and try to boost their Comdex by having another line of products to offer. Just a guess.

 

[DHK]

It's the only thing *I* can think of.

(Just because I'm a career agent with them now, doesn't mean I gave up the right to be critical of them too.)