Jackson National Life Insurance Company® (Jackson®) today announced the launch of Perspective Advisory, the company’s first fee-based variable annuity. Perspective Advisory offers the same investments and optional benefits, for an additional charge, as Perspective II®, Jackson’s flagship commission-based variable annuity.
Greg Cicotte, executive vice president and chief distribution officer for Jackson, said the company’s entrance into the fee-based space is designed to meet increased market demand for products compatible with fee-based accounts and platforms as a result of the U.S. Department of Labor (DOL) fiduciary rules, released in April 2016. He said the addition of Perspective Advisory to Jackson’s suite of products also allows Jackson to expand into advisory distribution channels where insurance products historically have not been widely utilized. Furthermore, the legal and compliance costs, as well as additional disclosure requirements related to managing a commission-based platform under the DOL mandates, have set the stage for utilizing fee-based variable annuities.
“In today’s heightened regulatory environment, many of our distribution partners are choosing this type of product to serve their clients who are seeking strategies for retirement planning,” Cicotte said. “At Jackson, we have always believed commissions and fees can coexist in this space, and the launch of Perspective Advisory is a step toward making that a reality. While we continue to view commission-based products as a client-friendly way to reap the benefits variable annuities provide, we also recognize the need and demand for fee-based products.”
Perspective Advisory’s key features include:
- Compensation structure: Advisor compensation is fee-based, rather than commission-based.
- Product cost: Contract charge of 0.30 percent annually for mortality, expense and administration costs.
- Surrender period: Three-year withdrawal charge schedule of 2 percent, 2 percent, 1 percent and 0 percent.
- Investment freedom: More than 90 investment options are available, offering access to world-class money managers and the flexibility to design a portfolio that meets consumers’ unique investing needs.
- Product guarantees: A full suite of optional living and death benefits are available at an additional charge, designed to provide the opportunity to grow retirement assets and obtain guaranteed income for life.
“The launch of Perspective Advisory fosters the opportunity to expand our presence in the industry and work with advisors who may be new to Jackson,” said Brian Sward, senior vice president of Product and Investment Management for Jackson National Life Distributors LLC (JNLD). “We are committed to providing advisors with quality products that allow them the flexibility to best serve their clients and grow their businesses — the addition of a fee-based variable annuity to the Jackson family ensures we can do just that.”
Jackson is committed to providing education, service support and digital tools to increase the ease of doing business through a new product offering. Financial professionals who would like to learn more about Perspective Advisory can contact Jackson at 800/711-JNLD (5653) or visit www.jackson.com.
About Jackson National Life Insurance Company
Jackson is a leading provider of retirement products for industry professionals and their clients. The company offers a diverse range of products including variable, fixed and fixed index annuities designed for tax-efficient accumulation and distribution of retirement income for retail customers, and fixed income products for institutional investors. Jackson subsidiaries and affiliates provide specialized asset management and retail brokerage services. With $230.4 billion in IFRS assets*, Jackson prides itself on product innovation, sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, the company develops proprietary research, industry insights and financial representative training on retirement planning and alternative investment strategies. Jackson is also dedicated to corporate social responsibility and supports charities focused on helping children and seniors in the communities where its employees live and work. For more information, visit www.jackson.com.
Jackson is the marketing name for Jackson National Life Insurance Company (Home Office: Lansing, Michigan), Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York) and Jackson National Life Distributors LLC.
*Jackson has $230.4 billion in total IFRS assets and $216.5 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of June 30, 2016). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson's parent company.
Jackson National Life Insurance Company is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world's leading financial services groups. It provides insurance and financial services through its subsidiaries and affiliates throughout the world. It has been in existence for over 165 years and has $751.7 billion in assets under management (as of June 30, 2016). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
This press release may contain certain statements that constitute “forward-looking statements.” Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished. Any forward-looking statements reflect Jackson’s views and assumptions as of the date of this press release and Jackson disclaims any obligation to update forward-looking information.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company®.
A variable annuity is a long-term, tax-deferred investment designed for retirement, involves investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
Optional living benefits and death benefits may be elected at issue and, once elected, may not be cancelled. Only one optional living benefit and one optional death benefit may be elected per contract. May not be available in all states or on all products, and state variations may apply. The long-term advantage of the benefit will vary with the terms of the benefit option, the investment performance of the variable investment options selected, and the length of time the annuity is owned. As a result, in some circumstances the cost of the option may exceed the actual benefit paid under the option.
The PerspectiveSM Family of Variable Annuities (VA620, VA770) is issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations, and restrictions, including possible withdrawal charges, and excess interest adjustments where applicable. Jackson issues other annuities with similar features, benefits, limitations and charges. Contact Jackson for more information.
Melissa Hernandez, Corporate Communications Director