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.
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.