ING Lifelong Income 1

Transcription

1 ING Lifelong Income 1 F Type of life insurance (Branch 23) life insurance of NN Insurance Belgium SA/nv offers a return linked to investment funds (described below in this financial information sheet) whereby NN Insurance Belgium SA/nv stipulates the payment of a guaranteed lifelong annuity. Covers If the insured lives: As long as the insured is alive, NN Insurance Belgium SA/nv will pay out a guaranteed lifelong annuity. The policyholder may request that such amount be paid according to the frequency of his/her choice: i.e. monthly, quarterly, half yearly or annually. The amount of the guaranteed lifelong annuity is calculated at the start of the contract on the basis of: the net amount deposited 2 the conversion rate applied. The conversion rate is based on the age of the insured when he signs the contract. For the minimum age of 50 years it is 1.75%. This percentage rises by 0.10% per year the insured is over the age of 50 when the contract is taken out. The maximum percentage applied is 4.65% in the case of an insured aged 79. This percentage continues to apply throughout the lifetime of the contract. The guaranteed lifelong annuity is calculated on an annual basis by multiplying the basic reserve (at the start of the contract this is the net amount deposited) by the applicable conversion rate. If the frequency is not annual, the amount will be reduced proportionally in accordance with the frequency chosen. Once every three years from the start of the contract, the reserve value known at that time will be compared to the basic reserve. If, on the comparison date, the reserve is higher than the basic reserve, such reserve at the time of comparison will become the new basic reserve and the periodical lifelong annuity will be recalculated. If, at the time of comparison, the reserve is lower than the applicable basic reserve at that time, the current basic reserve will be maintained until the next comparison date. In that case, the level of the periodical guaranteed lifelong annuity will be maintained. Each periodical payment of the guaranteed lifelong annuity will reduce the reserve. If such payment depletes the reserve, the guaranteed lifelong annuity valid at that time will remain at the same level for the remainder of the contract. In the event of a partial withdrawal (only possible after a period of 8 years), the basic reserve will be reduced proportionally and the guaranteed lifelong annuity will be recalculated. In the event of a total withdrawal the lifelong annuity will no longer be paid out. The contractholder may not request that the annuity payments be stopped. If the insured dies: In the event of the death of the insured, the guaranteed lifelong annuity payments will stop. NN Insurance Belgium SA/nv will pay the equivalent of the remaining units to the beneficiary(ies). The value of the units in euros is fixed according to the first known valuation, provided NN Insurance Belgium SA/nv is notified of the death by the latest three bank working days before such valuation. Otherwise, the reserve value will be calculated on the basis of the next valuation. 1 This life insurance financial information sheet sets out the terms of the products applying on 15/10/2014. ² After deduction of fees and taxes 1

2 Target groups ING Lifelong Income is for customers who want to receive a guaranteed lifelong annuity from their investment. Funds The net amount paid by the policyholder is invested in the fund proposed by ING Belgium SA/nv. The proposed fund and underlying assets are detailed below in this financial information sheet. Return As it is a Branch 23 fund, return is in no way guaranteed.the objective of the fund is to realise a capital gain. Despite all the measures taken to attain the objective, investment in this fund is still subject to certain risks. The value of the fund can vary over time. The ensuing financial risk is borne by the policyholder. No profit sharing is allocated. Fund launched on 09/02/2009 Past return Over 1 year 2014 Over 3 year Over 5 year Over 10 year Since launch +6,25% +30,25% +21,87% - +58,54% The return is calculated on a annual basis on the net asset value (NAV) of the previous period (always on 31/12). Past returns do not guarantee the future. Charges Entry fee: 2% on the single deposit, after deduction of all applicable taxes and duties. Exit fee: see Surrender fee / Withdrawal fee. Management fee on the funds: 0.65% on an annual basis and is calculated proportionally on the net asset value each month. Surrender fee / Withdrawal fee: the withdrawal penalty only applies for the fi rst four years of the contract. The first month it is 4.80%, thereafter it drops by 0.10% a month. Charges for transfers between funds: not applicable. Cover charges for the guaranteed lifelong annuity: The guarantee charges for the guaranteed lifelong income amount to 1.10% on an annual basis. They are calculated on the basic reserve or on the new basic reserve if the guaranteed lifelong income is increased. These charges are levied on the number of units obtained, for the fi rst time when the contract is fi rst valued. Afterwards, the payment will be made once every 4 weeks by cancelling the required number of (fractional) units, provided there are still units on the contract. 2

3 Joining/Subscription At anytime. The minimum age for subscription is 50 years and the maximum age is Duration The contract is for life and terminates on the death of the insured or in the event of a total withdrawal of the reserve (on the policyholder s initiative). Net asset value The net amount deposited is converted into fund units. The deposit is converted into units by the latest on the first valuation of the fund following the date the deposit is received and provided the NN Insurance Belgium SA/nv account number is credited with the amount of the deposit by the latest three bank working days before such valuation. Otherwise, the conversion into units will be calculated on the basis of the next valuation. The net asset value is calculated by dividing the value of the fund s assets, minus the management fee, charges arising from the management of the fund (as indicated in the management regulations) and any taxes, levies and duties, by the number of units on the valuation date. The net asset value is fixed once a week, on Wednesdays. Each week NN Insurance Belgium SA/nv informs the press of the net asset value and always indicates the net asset value in the annual policy statement. Premium Single-premium contract (no supplementary deposits allowed). Minimum gross single premium of 50,000 EUR (excluding fees and taxes). If a married or cohabiting couple takes out this product at the same time, two contracts with a minimum gross value of euros 25,000 each (excluding fees and taxes) may be taken out. If the policyholder has already taken out a similar policy, the minimum gross amount of the new policy is euros 25,000 (excluding fees and taxes). In accordance with current tax legislation: Taxation The policyholder s deposit is subject to a premium tax of 2%. Guaranteed lifelong annuity: The guaranteed lifelong annuity is taxed according to the annuity taxation system, which means that only the income (yield) included in the lifelong annuity represents taxable income from movable property. 1 As the contract stipulates the payment of an annuity, the age bracket for subscription is based on actuarial criteria 3

4 The taxable income corresponds to the difference between the increased guaranteed lifelong annuity (following a three-yearly increase) and the guaranteed lifelong annuity determined at the start of the contract. Death of the insured: In the event of the death of the insured, the taxable income corresponds to the positive difference between the contract reserve at the time of death and the single premium paid in (after deduction of taxes but before entry fees), minus the untaxed portion of the guaranteed lifelong annuity already paid out by NN Insurance Belgium SA/nv before the death. The general rules regarding death duties apply. Withdrawals A withdrawal is to be considered as a prepayment of future lifelong annuity. Consequently, the annuity taxation system applies and only the yield included in the withdrawal value represents taxable income from movable property. The taxable income is equivalent to the difference between the contract reserve and the single premium paid in (after taxes but before entry fees), minus the untaxed portion of the periodical income already paid out. In the event of a partial withdrawal, a proportional rate is applied depending on the proportion of the reserve which is withdrawn. Surrender/Withdrawal Partial withdrawal/surrender After 8 years, the policyholder may withdraw part of the contract reserve provided such withdrawal amounts to a minimum of 2,500 EUR and that a minimum of 2,500 EUR remains in the reserve following the withdrawal. Following a partial withdrawal, the guaranteed lifelong annuity will be recalculated accordingly. Total withdrawal/surrender The policyholder may withdraw the entire reserve of the contract at any time. Total withdrawal terminates the contract. Not applicable. Transfer between funds 4

5 Information Once a year, ING Belgium SA/nv will send the policyholder an overview with the position of the contract. Please read the life insurance financial information sheet, the general terms and conditions (reference I445E ING (07/04/2015)) and the management regulations before signing a contract. These documents are available from any ING Belgium branch and from NN Insurance Belgium SA/nv. Investment funds linked to ING Lifelong Income Funds in which investment is allowed: ING Lifelong Income Yellow (ISIN code BE SRW code ) Investment objective: ING Lifelong Income Yellow aims to realise a capital gain through active management according to the strategy determined by ING Investment Management. Risk category and profile: risk category risk profile ING Lifelong Income Yellow: 2 Balanced Fund manager: ING Investment Management. Net asset value: The initial net asset value is 100 EUR per unit as calculated on 18/02/2009. Underlying assets: ING Lifelong Income Yellow is divided into two asset classes: equities and bonds. The management charges linked to the underlying assets are already calculated on the basis of the net asset value of ING Lifelong Income Yellow. On the advice of ING Investment Management, the underlying assets may change or be increased at any time. The proportion between the underlying assets may also change provided the initial objective and investment strategy are respected. Policyholders are not informed of such changes. Asset allocation: Equities: Max. 60% Bonds: Min. 40% Equity: ING (L) Invest Euro High Dividend VC (ISIN code LU SRW code ) ING (L) Invest Euro Equity VC (ISIN code LU SRW code ) Bonds: ING (L) Renta Fund Euro VC (ISIN code LU SRW code ) ING (L) Renta Fund Euromix Bond VC (ISIN code LU SRW code ) 5