Other issuers with newly launched fee-based variable annuity products include Pacific Life and Lincoln Financial. (Photo: iStock)

Jackson National Life Insurance Company is adding another type of fee-based annuity.

The Denver-based unit of Prudential PLC has introduced the Elite Access Advisory variable annuity contract.

The contract is a fee-based, investment-only variable annuity contract. An IOVA offers the same kinds of investment options as a traditional variable annuity contract, without any principal or income guarantees.

Related: Pacific Life launches fee-based variable annuity and New variable annuity from Lincoln targets fee-based advisors

Jackson National has designed the fee-based IOVA contract to eliminate mortality, expense and administration charges. Instead, the annuity holder pays a contract charge of $10 per month. The contract comes with a three-year surrender period.

Jackson National introduced a traditional fee-based variable annuity, the Perspective Advisory contract, in September.

The company introduced an IOVA contract with a traditional compensation structure in 2012.

Jefferson National, Lincoln Financial and Pacific Life are some of the other companies that have introduced fee-based only variable annuities in recent months.

Under the Obama administration, the U.S. Department of Labor was pushing the annuity industry toward fee-based compensation arrangement. Greg Cicotte, Jackson National’s chief distribution officer, said in a statement that the company has added the fee-based annuity products partly because of the effects of the DOL fiduciary rules on distributors’ interest in fee-based products.

Trump administration DOL officials might slow or reverse the push toward fee-based compensation, but some life insurance agents and other financial professionals have been moving toward fee-based arrangements on their own, to compete fee-based investment planners and to seek a steadier revenue base.

Related: 

DOL fiduciary rule could be halted ‘within days’ of inauguration

How to successfully transition to a fee-based practice

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