Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Retirement Planning > Retirement Investing > Annuity Investing

Jackson National aims at fee-based, investment-only market

By Allison Bell

X
Your article was successfully shared with the contacts you provided.

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

Are you following us on Facebook?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.