A major annuity manufacturer has extended its product line.
Jackson National Life Insurance Company, Lansing, Mich., a unit of Prudential P.L.C., London, is rolling out the Select Annual Reset fixed indexed annuity contract.
Jackson National is guaranteeing to pay a minimum interest rate and a minimum death benefit, and it will give holders a chance to earn additional interest based on the performance of the S&P 500 Index, Jackson’s own Multi-Strategy Index, or a combination of both indices.
Holders can choose a 5-year or a 7-year term, and they can reallocate assets between the fixed account and the 2 variable accounts each year, Jackson National says.
After the fifth contract year, Reset contract holders can convert the “accumulation value” in the contract into a stream of income without paying withdrawal charges, Jackson National says.
Jackson National will use a point-to-point crediting method.
Holders can take out 10% of the accumulation value each year without paying withdrawal charges, and the product also offers holders the ability to withdraw up to 100% of the account value if they or a joint owner need nursing home care or hospital care for 90 consecutive days beginning at least 30 days after issue, Jackson National says.
Jackson National is responsible for backing the product guarantees.