INCOME Promise Select is a fixed single premium immediate annuity (SPIA) from Nationwide Financial. The annuity is targeted at risk-averse clients looking for guaranteed income for a specified period or over a lifetime. The annuity can be taken under various plan types, non-qualified, IRA and Roth IRA. The target consumers are basically looking for simplicity and predictability once they enter retirement.
INCOME Promise Select Annuity Facts
Issue age
The issue age is 5-95 years for annuitants and joint annuitants. The minimum could, however, be 30 if COLA is selected. Owners may be of any age.
Minimum initial investment
- Minimum IRA payment- $10,000
- Minimum non-qualified payment- $10,000
- Maximum payments-$3,000,000 (Unless with prior approval)
Liquidity feature
With the Income Promise Select, annuitants can withdraw up to 100% of the contract value without charges during the liquidity period. Multiple withdrawals are allowed during the liquidity period but must all be $2,000 or more. This will be available once in each contract year.
Medicaid eligibility
This helps the annuitant qualify for Medicaid benefits or protect a healthy spouse.
Cost of Living Adjustment (COLA)
This option, if selected will automatically increase payments by a certain percentage compounded annually. However, it must be selected at the contract’s inception.
Annuitization
Annuitization can be done under several income options. These are
- Single Life with five-year to 30-year Term Certain
- Single Life with Cash Refund
- Joint and (20% to 100%) Last Survivor
- Single Life
- Joint and (20% to 100%) Survivor with three- to 30-year Term Certain
- Joint and (20% to 100%) Survivor
- Joint and (20% to 100%) Last Survivor with three- to 30-year Term Certain
- Joint and (100%) Survivor with Cash Refund
- Joint and (100%) Last Survivor with Cash Refund
- 5- to 30-year Term Certain
The payouts can be made on a monthly, quarterly, semi-annual or annual basis.
