ING Lifelong Income
Enjoy a lifelong income thanks to your life insurance
Why compromise? With ING Lifelong Income, a branch 23 life insurance, you can enjoy a guaranteed lifelong income, calculated according to your profile. And what’s more you can access you capital at any time.
Guaranteed lifelong income
The amount of the lifetime annuity is guaranteed for life by NN Insurance Belgium SA/nv.
Access to capital
You can access your contract’s reserve at any time but you may in certain cases be subject to withdrawal charges.
Potential steady growth
Your annuity benefits from the growth potential of the stock markets, without being exposed to risk due to devaluations.
ING Lifelong Income, a branch 23 life insurance (investment insurance, whose yield is linked to that of investment funds), with a single premium, created by NN Insurance Belgium SA/nv* and subject to Belgian law, may well suit you…
- The amount of the lifetime annuity is guaranteed for life by NN Insurance Belgium SA/nv.
- The initial annuity obtained from your ING Lifelong Income contract is not taxed.
- Your annuity benefits from the growth potential of the stock markets, without being exposed to risk due to devaluations.
- Upon your death, the payment of the annuity stops and any remaining balance of the available capital is paid out to the beneficiary/ies nominated in the contract, or to your estate.
Before continuing, please take a look at the following documents:
- The Key Information Document
- ING Lifelong Income General Terms and Conditions (PDF).
- ING Lifelong income management rules (PDF - FR).
- ING Lifelong Income sales brochure (PDF).
These documents are also available on request and free of charge from your ING branch and on ing.be in French, Dutch, English and German, except for ING Lifelong income management rules which is available in French and Dutch only.
ING Lifelong Income is intended for residents in Belgium aged between 50 and 79 who are taxpayers as private individuals in Belgium, and who:
- have a minimum capital to invest of €50,000.
- wish to benefit from additional income guaranteed for life.
- Insolvency risk: Life insurance policies are covered by special and separately managed funds within the insurance company's assets. If the insurer should go bankrupt, this fund is reserved first and foremost to meet the commitments to the policyholders and/or beneficiaries. In addition, in the event of NN Insurance Belgium SA/nv defaulting on payments or going bankrupt, the payment of the annuity may be suspended and the recovery of the total amount of the reserve for the contract may be at risk. ING Lifelong Income is not covered by the Special Protection Fund for financial services.
- Market risk: This is a generic risk that affects all kinds of investments. The changes in the price of securities are basically governed by the movements in the financial markets, as well as the economic growth of issuers, who themselves are affected by the global economic situation and by the economic and political conditions in their countries.
- Concentration risk: If investments are made in a specific geographic area, the concentration risk is higher than is the case if investments are spread across several different geographic areas.
The capital is therefore not guaranteed.
The capital is invested in the ING Lifelong Income Yellow fund (code ISIN BE0948481156) which invests 60% maximum in equity funds and 40% minimum in bond funds.
The aim of the fund is to realise a capital gain. ING Lifelong Income aims to generate returns by actively managing a portfolio of bonds, equities and money market instruments issued by companies based in the European Union and governments of the European Union. Investment occurs only in the Member States of the European Union who belong to the euro zone, in countries that form part of the European Economic Area or in shares issued by companies listed on the stock markets in the euro zone. It is mainly invested in bonds and shares in euros. A balance is maintained between shares and bonds.
NN Insurance Belgium S.A. publishes the net asset value every week in the financial press as well as in the annual statement of the contract.
ING Lifelong Income guarantees you the regular payment of a predefined annuity (monthly, quarterly, six-monthly or annually) that is guaranteed for life, making it the ideal complement to your future income.
The amount of the guaranteed life annuity is calculated at the start of the contract based on:
- the net amount paid.
- the conversion rate applied. The conversion rate is determined by the age of the policyholder when the policy is taken out:
- At 50 years old, it is 1.75% (as of 1 May 2018).
- This percentage increases by 0.1% for each year the insured person is over 50 at the time of subscription.
- The maximum percentage applied is 4.65% for a policyholder aged 85.
This percentage does not change throughout the lifetime of the contract.
Your annuity is re-evaluated every 3 years, on the date of the contract’s signing. At this moment:
- If the fund value has increases, so does your income.
- If the fund value has gone down, your income stays the same.
In any event, your income will never decrease (unless you withdraw money yourself from your contract. In this case the interest will be adapted according to the amount of remaining capital).
Income is withdrawn from your contract reserve. No profit sharing bonus will be allocated.
The annuity is taken from the remaining balance of your contract by reducing the number of units that make it up. The payment of the annuity is therefore going to start reducing the value of your contract as and when payments are made. The guarantee costs are also deducted from your reserve (1.1% each year).
Single premium contract with 50,000 euros gross minimum (before fees, charges and tax).
This is a lifetime contract and ends with the death of the policyholder or when the reserve has been completely withdrawn by the policy holder.
- Subscription fees: 2% on each premium paid (after withholding tax of 2% on the premium).
- Management fees of the underlying fund ING Lifelong Income Yellow: 0.65% on an annual basis, calculated pro rata monthly on the net asset value. The underlying funds of ING Lifelong Income Yellow include their own management fees (on average 1.02% with a maximum of 1.1% per year) that are included in the net asset value of the funds.
- Annuity guarantee fee: 1.1% per year. These are calculated on the basic reserve or the new basic reserve if the guaranteed life annuity is increased.
- Withdrawal fee: this applies for withdrawals occurring during the first 4 years of the contract. This fee is decreased over time: from 4.8% for the first month, and then declining by 0.1% per month.
- These fees can vary before subscription by prior notification (via the The Key Information Document).
- Premium tax: 2% of the premium paid.
- Tax on the annuity: the annuity obtained from your ING Lifelong Income policy is not taxed. Only if the annuity is increased, the difference between the new annuity and the initial annuity is taxable (at a rate of 30%, plus the supplementary municipal taxes).
- Taxation on retirement: If the total amount of the policy reserve plus the annuities paid out is greater than the amount of the net single premium, this positive difference will be subject to a separate tax of 30% along with supplementary municipal taxes.
- Taxation in the event of death of the policyholder If the total amount of the policy reserve plus the annuities paid out is greater than the amount of the net single premium, this positive difference will be subject to a separate tax of 30% along with supplementary municipal taxes. The amount of the reserve less any tax due will then be subject to succession duties.
This tax regime applies to private individuals, resident in Belgium .
Taxation depends on the individual situation of each customer and may change in the future.
Each year, the policyholder will receive an annual report from NN Insurance Belgium SA/nv showing the value of their policy as of 31 December of the previous year.
- Feel free to contact ING Complaint Management by e-mail via firstname.lastname@example.org or by post to Cours Saint-Michel/Sint-Michielswarande 60, 1040 Brussels.
- Already been in touch with ING? Contact the Financial Disputes Ombudsman, North Gate II, Avenue Roi Albert II/Koning Albert II-laan 8, 1000 Brussels (www.ombudsfin.be) or the Insurance Ombudsman, Square de Meeûsplein 35, 1000 Brussels (www.ombudsman.as).
NN Insurance Belgium (formerly ING Life Belgium nv) is an insurance company within the NN Group with a long tradition in Belgium. NN Group is an insurance company and manager of investments listed on the stock exchange with a strong European focus. The group, which is present in over 18 countries and employs a staff of 12,000, provides services in the field of pensions, insurance, investments and, in the case of the Netherlands, banking services for more than 15 million customers.
The segmentation criteria used to establish the annuity of your ING Lifelong Income policy are your age and the amount invested.
- Your age: You must be between 50 and 85 years of age to apply for this product.
- This age range for subscription is defined on the basis of actuarial criteria, because the contract includes payment of an annuity.
- Amount invested: in order to enjoy an adequate monthly income for your daily life the minimum amount you may invest is:
- 50,000 euros gross per person (before fees, charges and tax).
- 25,000 euros gross per person (before fees, charges and tax) for spouses or legally cohabiting partners who each take out a policy at the same time.
- At least 25,000 euros gross (before fees, charges and tax) if the policyholder has already taken out a similar contract.
- From 1.5 million euros and above there is a special acceptance procedure because of the concentration risk (due to all risks being combined in a single policy).
You can make withdrawals. Such withdrawals, however, will be taxed by the tax authorities.
Unlike most "annuity" type products, the reserve of your ING Lifelong Income policy will remain available. This means that upon your death, the payment of the annuity stops and any capital that is still available is transferred to the beneficiary/ies nominated in the policy.