Jackson National Life has launched a fee-based variable annuity designed for independent registered investment advisors (IRIAs) to specifically address their annuity concerns. According to the company, the Jackson Retirement Investment Annuity offers consumers “the opportunity to grow their assets tax-deferred while generating protected income and preserving their legacy.”
The annuity product is a result of “research and direct feedback from the growing population of independent RIAs,” says Aimee DeCamillo, Chief Commercial Officer and President for Jackson National Life Distributors, and that it will provide “choice and flexibility” and “deliver better outcomes for (clients’) financial futures.”
The features of the new JRIA product include:
- Cost control: With a core contract charge on JRIA of 0.40%, optional add-on living and death benefits are available for an additional charge.
- Tax deferral: Clients who purchase JRIA will have the tax benefits of an annuity, which enables invested assets the opportunity to grow without tax implications until withdrawals begin.
- Jackson +Protect Living Benefit: A low-cost benefit available for an additional charge of 0.30% during the deferral period and 0.75% during the withdrawal period. (This feature is not available in New York.)
- Investment flexibility: JRIA offers 110 institutionally managed and priced sub-account options.
- Return of Premium death benefit (available for an additional charge) allows investors to protect assets against market downturns.
Annuity market brings expansion, opportunities
Jackson is just one of several companies that recently announced new annuity products. Experts point to a number of reasons that annuities are getting a fresh look, especially coming out of the COVID-19 pandemic. However, many cite the passage of the SECURE Act in Dec. 2019 as a turning point, as it created a “safe harbor” by absolving plan sponsors of liability if an annuity provider they select later becomes insolvent.
These developments promise to give more opportunities to financial advisors.
“While the IRIA audience has traditionally underutilized annuities, we know this segment of the market may be looking to add protected lifetime income products to clients’ portfolios,” adds DeCamillo, saying they will continue to “explore opportunities to expand and diversify our distribution efforts, including through the IRIA channel.”
Lynn Brackpool Giles is a contributing editor to 401(k) Specialist. Giles is a former Managing Director of Communications and Consumer Services for the Financial Planning Association (FPA), where she oversaw all corporate, legislative, and consumer communications. In her current journalistic practice, she is a frequent contributor to numerous financial services industry publications.
