Jackson National Life Insurance Company® (Jackson®) today announced the launch of Jackson RateProtectorSM, a single premium, multi-year guaranteed fixed annuity. Jackson RateProtector offers consumers the opportunity to protect and grow their assets through guaranteed interest rates that will not fluctuate during a selected time period, combined with the ability to defer taxes on any earnings until money is withdrawn.
The multi-year guaranteed annuity (MYGA) market is booming. According to Wink’s Sales and Market Report for 1Q 2019, sales of MYGAs have grown nearly 80 percent over the same period last year — more than any other product line1. Alison Reed, executive vice president of Operations for Jackson National Life Distributors LLC (JNLD), the sales and marketing arm of Jackson, said Jackson RateProtector provides consumers access to a product that consistently grows every year, assuming they do not take withdrawals.
“At Jackson, we’re pleased to honor our commitment to continually enhance our spectrum of quality product offerings to serve the long-term needs of consumers who are preparing for their financial futures,” Reed said. “The release of Jackson RateProtector allows the company to meet advisors and their clients where they are in the planning process, while providing access to a vehicle that can ensure a portion of their savings experiences reliable growth while staying protected from the unpredictability of the market.”
Jackson RateProtector’s key features include:
- Interest Rate Guarantees: Initial interest rates will be guaranteed for the selected 3-, 5- or 7-year2 period. Following the initial guaranteed option period, no withdrawal charge or Market Value Adjustment (defined below) would apply, and renewal interest rates will be guaranteed for one-year periods, never falling below the contract’s declared guaranteed minimum interest rate.
- Market Value Adjustment (MVA): Jackson applies an MVA to certain amounts that are withdrawn or annuitized. The MVA may result in an increase or decrease to amounts that are removed from the contract.3
- 10 Percent Free Withdrawals: In the first contract year, contract owners may take up to 10 percent of their initial premium without incurring a withdrawal charge or MVA4. Every following contract year, contract owners may withdraw up to 10 percent of the accumulated contract value.
- Tax Deferral5: RateProtector is a tax-deferred annuity, meaning the contract’s earnings are sheltered from taxes that can erode savings until withdrawal.
- Death Benefit: Guaranteed death benefits provide family and legacy protection, with options to preselect an income stream for beneficiaries6 in addition to a lump sum.
- Terminal Illness and Extended Care Waivers: Effective on the first contract anniversary, if contract owners (or a joint owner) are diagnosed with a terminal illness or confined to a nursing home or hospital for 90 consecutive days by medical necessity, up to 100 percent of the accumulated contract value may be withdrawn (one time only) without incurring a withdrawal charge. Both waivers are subject to a maximum of $250,0007.
Reed said the launch of a multi-year guaranteed annuity enhances the company’s fixed annuity product suite, which combines asset protection with the potential to benefit from competitive interest rates and tax-deferred growth.
“As financial professionals continue to work with a trusted annuity partner like Jackson, they can now offer a product to more risk-adverse clients,” Reed said. “Furthermore, Jackson RateProtector allows contract holders to protect their assets and leave a legacy for their family, helping to ensure their loved ones can remain financially secure.”
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 Jackson RateProtector can call the company at 800-711-JNLD (5653) or visit www.jackson.com.
Jackson is a leading provider of retirement products for industry professionals and their clients. The company and its affiliates offer variable, fixed and fixed index annuities designed for tax-efficient growth and distribution of retirement income for retail customers, as well as products for institutional investors. Jackson is a proud founding member and co-chair of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organization formed and supported by 24 of the nation’s financial services organizations to create awareness and educate Americans about the importance of protected lifetime income. With $257.7 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy and supports nonprofits focused on strengthening families and creating economic opportunities in the communities where its employees live and work. For more information, visit www.jackson.com.
*Jackson has $257.7 billion in total IFRS assets and $243.5 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of December 31, 2018). 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 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, serving over 26 million customers with $837.1 billion in assets under management (as of December 31, 2018). 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.
Fixed annuities are long-term, tax-deferred vehicles designed for retirement. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
The Latest Income Date allowed under the contract is the owner’s age 95, which is the required age to annuitize or take a lump sum.
Jackson RateProtector Individual Single Premium Deferred Fixed Annuity with Market Value Adjustment (contract form numbers A520, ICC19 A520, ICC19 A520-CB1) is issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan). This product may not be available in all states and state variations may apply. This contract has limitations and restrictions, including withdrawal charges and market value adjustments. Jackson issues other annuities with similar features, benefits, limitations, and charges. Discuss them with your representative or contact Jackson for more information.
Jackson National Life Insurance Company and its affiliates do not give legal, tax, or estate planning advice. If you have questions regarding your situation, please consult a qualified advisor.
Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claims paying ability of Jackson National Life Insurance Company.
Jackson is the marketing name for Jackson National Life Insurance Company. Jackson National Life Distributors LLC.
Jackson RateProtector is not available in California or New York. Firm and state variations may apply.
1 Source: WinkIntel.com. Wink’s Sales & Market Report 1Q 2019.
2 During the initial Guaranteed Option Period, the Withdrawal Value for a Total Withdrawal from the Contract is equal to the Accumulation Value less any applicable Withdrawal Charge, and then adjusted for any applicable MVA. In no event will a Total Withdrawal during the initial Guaranteed Option Period be less than 87.5%, net of applicable taxes, reduced by partial withdrawals (after being reduced for any applicable Withdrawal Charges and then adjusted for any applicable MVAs), accumulated at the initial Guaranteed Minimum Interest Rate (GMIR). After the expiration of the initial Guaranteed Option Period, no withdrawal charge or MVA will apply.
3 The MVA will be calculated by multiplying the amount removed from a Guaranteed Option Period by the result of the formula listed in the contract pages. The Accumulation Value is equal to the total premium, plus interest credited daily at never less than the applicable GMIR guaranteed for the contract per annum, less any gross partial withdrawals.
4 The Company applies a Market Value Adjustment (MVA) to certain amounts withdrawn during the initial Indexed Option Period and annuitized from the Indexed Option and Fixed Option during the first five contract years. The MVA may result in an increase or decrease to amounts withdrawn, increasing or decreasing the amount paid. In no event will a full withdrawal be less than the Guaranteed Minimum Value. Please see the Contract Disclosure for details regarding the calculation of MVA. MVA not applicable in all states. During the first Contract Year, 10% of the premiums paid may be taken free of Withdrawal Charges and MVA. In subsequent years, 10% of the Accumulation Value determined at the beginning of the Contract Year may be taken free of Withdrawal Charges and MVA. If a requested partial withdrawal plus the sum of all prior withdrawals within a Contract Year exceeds the greater of the 10% of the Accumulation Value (determined at the beginning of the Contract Year), the amount of the partial withdrawal requested in excess of the free amount will be subject to Withdrawal Charges and MVA. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
5 Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA and may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.
6 Preselected death benefit election available prior to the income date for nonqualified and IRA contracts only.
7 For the Terminal Illness Waiver, the Company reserves the right to require Physician Certification that certain criteria will be met to qualify. For the Extended Care Waiver, the Company reserves the right to require proof of confinement. State variations may apply. MVA may apply to amounts withdrawn.