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Jackson National Adds Annuities With Lifetime Benefits Option

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Jackson National Life Insurance Company is rolling out two new indexed annuity products that offer a lifetime income benefits option.

One version, the MarketProtector contract, pays commissions. The other version, the MarketProtector Advisory contract, is aimed at fee-based advisors.

(Related: U.S. Individual Annuity Sales Drop Slows: LIMRA)

The Issuer

Jackson National is a unit of Prudential PLC of London. The company has its operating headquarters in Denver, but it has its official state of domicile in Michigan, and Michigan insurance regulators oversee the product.

The Index Menu

The index menu includes the S&P 500 Index, which focuses on stocks from large U.S. companies, and the MSCI EAFE index, which includes large and midsize companies based in countries all around the world.

The Contract Design

The fee-based product has no withdrawal charge.

The commission-based product comes with a choice of 5-year, 7-year or 10-year option periods.

The purchaser of either product can get a 1% fixed annual crediting rate ranging on the guaranteed minimum value, or 87.5% of the premiums paid into the annuity.

Both products also guarantee that, at the end of the indexed option period, the minimum value of the annuity will be at least equal to the value of the premiums paid in, minus the value of any withdrawals or add-on benefit charges.

The People

The maximum issue age for the annuities is 85, and the maximum annuitization age is 95.

The minimum initial premium is $25,000.

Commission-Based Product Extras

Consumers who buy the commission-based version of the annuity get an extended care waiver and a terminal illness waiver.

The extended care waiver applies to an annuity owner or joint owner who is confined to a nursing home or hospital for 90 days by medical necessity at some point beginning during or after the second contract year.

The terminal illness waiver applies to an annuity owner or joint owner who is diagnosed with a terminal illness during or after the second contract year.

Consumers who end up needing either the extended care waiver or the terminal illness waiver can take out up to 100% of the contract value free of withdrawal charges, up to a maximum withdrawal of $250,000.

— Read Jackson National Aims at Fee-Based, Investment-Only Market on ThinkAdvisor.

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