Jackson Keeps Variable Annuity Benefits Guarantees on Menu

Jackson Financial will still have something to offer variable annuity buyers who want income guarantees.

The Lansing, Michigan-based life insurer today reaffirmed its commitment to providing annuity benefits guarantees by introducing the Flex Suite family of variable annuity living benefits.

Some insurers have talked about tilting away from selling traditional variable annuities and annuity benefits guarantees, because of concerns about the effects of low interest rates on the cost of the guarantees and changes in the accounting rules for long-term guarantees. But interest rates have jumped up in the past 18 months, and the effects of the accounting rule changes have been less severe than originally feared.

At Jackson, “we remain committed to our core value proposition of offering investment freedom,” Brian Sward, head of product solutions at Jackson National Life Distributors unit, said in a comment about the new living benefits family.

Access to income guarantees can help clients make their nest eggs bigger and cope with investment market volatility, Sward said.

What It Means

The variable annuity benefits guarantee market may look different than it did 15 years ago, but guarantees are still out there.

Jackson’s commitment to continuing to offer guarantees is noteworthy partly because it’s the leader in the U.S. individual traditional variable annuity market. It ranked first in market share in the first quarter, with $2.4 billion of the industry’s $12.8 billion in new variable annuity sales, according to LIMRA.

The Guarantees

Jackson is selling the new benefits options to users of products in its Perspective variable annuity family.