Jackson Rolls Out FIA with Guaranteed Withdrawal Benefit
Jackson National Life Insurance Company has launched Jackson Income Assurance and Jackson Income Assurance Advisory, fixed index annuities (FIAs) with an embedded guaranteed minimum withdrawal benefit (GMWB).
The new products are said to provide protected lifetime income with additional opportunities for guaranteed withdrawal balance (GWB) growth. Jackson Income Assurance (commission-based) and Jackson Income Assurance Advisory (fee-based) each offer seven and 10-year options.
“The launch of the Jackson Income Assurance Suite further expands the spectrum of our product offerings—ensuring we can support a wide range of retirement planning goals and help more individuals achieve financial security with confidence,” said Alison Reed, chief product development and strategy execution officer, in a statement.
As reported by Jackson, the Income Assurance Suite includes the following:
- Embedded GMWB: The GMWB provides protected lifetime income with additional opportunities for GWB growth through deferral and step-ups. An 8% annual roll-up is credited daily (for a maximum of 10 years). Partial withdrawals during the deferral period can be made without sacrificing the roll-up as the GWB is proportionately reduced for withdrawals prior to the activation date. There is no deferral requirement to begin taking the guaranteed annual withdrawal amount (GAWA).
- GWB Premium Bonus: The 30% GWB premium bonus is immediately applied to the GWB on initial and additional premium 6 received in the first year.
- Multiple Crediting Methods Based on S&P 500 Index Returns:
- Cap: Index return up to a stated cap rate if the index return is positive.
- Performance Trigger: Provides a stated performance trigger rate if the index return is flat or positive.
- Free Withdrawal Amount: During the first contract year, 10% of initial and subsequent premiums paid may be taken free of withdrawal charges and market value adjustment (MVA). In subsequent years, 10% of accumulation value determined at the beginning of the contract year may be taken free of withdrawal charges and MVA.
- Advisory Friendly: Taking the advisory fee from the contract does not negatively impact the living benefit in any way. Advisory fees also do not result in a reduction of premium for the calculation of the death benefit, nor does it count toward the free withdrawal amount.
“By introducing an advisory friendly version of our FIA, financial professionals can take the fee from the contract without a negative impact to the income benefit,” added Brian Sward, EVP, head of Product Solutions. “This allows us to expand access to registered investment advisors who are increasingly utilizing annuities as part of their clients’ retirement plans by accounting for their unique needs and how they do business.”
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Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
