Mixed assessment for ING product

ING's recently launched MoneyForLife product has received a solid endorsement from the ratings house Adviser Edge, but this came with a warning that both MoneyForLife and AXA's North product only provide a clear benefit in a limited range of circumstances.

Releasing Adviser Edge's assessment of the ING product, the rating agency's head of structured products, Geoff Watkins, said it represented an important improvement over existing annuity products in that it attempted to address the real problem of financing an increasing life expectancy.

"The design is easy for investors to use and understand, and it provides the secure long-term backing of a life insurance policy - which is important for investors considering retirement income for late in life," he said.

However, Watkins said that quantitative testing of the MoneyForLife investment structure revealed it might only be of investment merit in limited circumstances.

"The product should be seen as insurance. It may satisfy some clients' need for security, but at a cost - and in many instances, the monetary cost is likely to outweigh the benefit," he said.

Watkins said the key message for advisers was that the products only provided a clear benefit in a limited range of circumstances and, as such, determining investor suitability was paramount to gauging whether there was a likelihood of achieving a benefit over the long term.