Jackson National Life Insurance Company has created a guaranteed minimum withdrawal benefit for its variable annuities that allows the contract holder to increase–or “gross up”– the available withdrawal amounts to generate more income.
Called LifeGuard Freedom 6 Net, the GMWB is an extra-charge option in Jackson’s Perspective family of variable annuities, says Jackson National, Lansing, Mich., an indirect subsidiary of Prudential P.L.C., London.
According to the prospectus for the Perspective II VA, the new GMWB guarantees withdrawals of a minimum annual amount for the life of the owner. But it may offer a higher level of guarantee and greater access to earnings for income purposes when the contract performs well, without negatively impacting the guarantees.
The company says the key features include:
- The GMWB enables contract owners to lock in gains to their guaranteed withdrawal balance every year if their contract value increases by an amount that exceeds premium payments adjusted for withdrawals.