Jackson National Life Insurance Company says it will be building more flexibility into some new variable annuity guarantee options.
Jackson National, Lansing, Mich., a unit of Prudential P.L.C., London (NYSE:PUK), says it is offering customers a chance to pay extra to customize a guaranteed minimum withdrawal benefit (GMWB) feature.
The new GMWB is the first customizable guarantee of that type that the company has offered, Jackson National says.
Another company, Allianz Life Insurance Company of North America, Golden Valley, Minn., a unit of Allianz S.E., Munich, Germany, recently made a move to add sizzle to its indexed annuities by adding an income inflation protection option tied to the Consumer Price Index.
The efforts to innovate come as press reports surface of insurers continuing to realign annuity programs in response to factors such as low interest rates, tough accounting proposals and provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act that could affect annuity hedging programs.
- Allison Bell