Jackson Enhances Variable Annuity Benefit Suite, Adds Fidelity to Money Manager Roster
July 26, 2019 by Jackson National Life Insurance Company
NASHVILLE, Tenn.–(BUSINESS WIRE)–Jackson National Life Insurance Company® (Jackson®) today announced several benefit updates to its family of variable annuities (VAs), including Perspective II and Perspective Advisory II. The changes are designed to streamline many of the add-on options offered through these products, by focusing on the most popular benefit designs.
As part of this launch, Jackson introduced LifeGuard Freedom Accelerator and Accelerator DB — two new benefits available through the Perspective family of VAs. LifeGuard Freedom Accelerator provides the potential for consumers to grow their income by offering higher levels of guaranteed withdrawals for each year they defer taking income. LifeGuard Freedom Accelerator DB adds the option for investors to leave a legacy, to help protect their families financially. Consumers who are seeking additional details about these benefits should partner with a financial professional who offers Jackson products.
Alison Reed, executive vice president of Operations for Jackson National Life Distributors LLC (JNLD), the distribution arm of Jackson, said that while the company routinely makes changes to its product suite, these recent updates are significant.
“Jackson’s continual product evolution underscores our position as the leading provider of variable annuities in the country1,” Reed said. “These enhancements help our distribution partners work with their clients to choose quality variable annuities that offer income guarantees and a robust benefit lineup — combined with investment freedom — as they customize clients’ portfolios in preparation for their financial futures.”
Along with the release of the new benefits, Jackson has also introduced an option that provides the potential for more frequent increases of the guaranteed benefit value as a result of positive market performance. With these and other changes, Jackson has aligned the benefit platforms across its commission and fee-based VAs, Perspective II and Perspective Advisory II, providing consistency in options regardless of how consumers choose to engage their financial professionals.
“As we streamline our benefits, we’re enhancing the options that enable consumers to grow their assets over time,” Reed said. “These changes are designed to work in tandem with our foundational commitment to provide investment freedom, ensuring clients’ investments aren’t restricted through managed volatility strategies or other forms of limiting market exposure.”
New Relationship with Fidelity
In addition to the product changes, Jackson is pleased to announce a new relationship with Fidelity Institutional Asset Management, one of the largest investment management organizations serving the U.S. institutional marketplace. Advisors and their clients will now have access to subaccounts managed by Fidelity through Jackson’s variable annuity offerings.
According to Reed, this relationship with Fidelity exemplifies Jackson’s commitment to align with well-respected money managers who offer competitive investment options.
“Jackson is excited to collaborate with such a highly-regarded financial institution like Fidelity,” Reed said. “Fidelity’s seasoned team and valuable market insight underscore their strength in investment management, as they seek to find attractive investment opportunities for clients. This fundamental approach complements our promise to offer investment freedom within our variable annuities, as we seek to provide the most value over the long term.”
Fidelity joins Jackson’s roster of world-class money managers who collectively provide more than 140 investment options2through Perspective II and Perspective Advisory II. Unlike many of its competitors, Jackson does not force consumers into restrictive asset allocation models or limit growth opportunities when they invest in its annuities, allowing clients to fully participate in the market without hindering their assets’ performance.
Jackson is committed to providing education, service support and digital tools to increase the ease of doing business through a new product offering. Financial professionals who would like to learn more about Jackson’s variable annuity products can call the company at 800-711-JNLD (5653) or visit www.jackson.com.
Jackson is a leading provider of retirement products for industry professionals and their clients. The company and its affiliates offer variable, fixed and fixed index annuities designed for tax-efficient growth and distribution of retirement income for retail customers, as well as products for institutional investors. Jackson is a proud founding member and co-chair of the Alliance for Lifetime Income, a nonprofit 501(c)(6) organization formed and supported by 24 of the nation’s financial services organizations to create awareness and educate Americans about the importance of protected lifetime income. With $257.7 billion in IFRS assets*, the company prides itself on sound corporate risk management practices and strategic technology initiatives. Focused on thought leadership and education, Jackson provides industry insights and financial representative training on retirement planning and alternative investment strategies. The company is also dedicated to corporate philanthropy and supports nonprofits focused on strengthening families and creating economic opportunities in the communities where its employees live and work. For more information, visit www.jackson.com.
*Jackson has $257.7 billion in total IFRS assets and $243.5 billion in IFRS policy liabilities set aside to pay primarily future policyowner benefits (as of December 31, 2018). International Financial Reporting Standards (IFRS) is a principles-based set of international accounting standards for reporting financial information. IFRS is issued by the International Accounting Standards Board in an effort to increase global comparability of financial statements and results. IFRS is used by Jackson’s parent company.
Jackson is an indirect subsidiary of Prudential plc, a company incorporated in England and Wales. Prudential plc and its affiliated companies constitute one of the world’s leading financial services groups, serving over 26 million customers with $837.1 billion in assets under management (as of December 31, 2018). Prudential plc is not affiliated in any manner with Prudential Financial, Inc., a company whose principal place of business is in the United States of America.
This press release may contain certain statements that constitute “forward-looking statements.” Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements which are other than statements of historical facts. However, as with any projection or forecast, forward-looking statements are inherently susceptible to a number of risks and uncertainties and actual results and events could differ materially from those currently being anticipated as reflected in such forward-looking statements. There can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished. Any forward-looking statements reflect Jackson’s views and assumptions as of the date of this press release and Jackson disclaims any obligation to update forward-looking information.
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Variable annuities are long-term, tax-deferred investments designed for retirement, involve investment risks and may lose value. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½.
The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Upon mandatory annuitization at age 95, multiple annuitization options may be available, some of which allow you to lock in the enhanced death benefit. Please see the prospectus for important information regarding the annuitization of a contract.
Death benefits terminate if the contract value falls to zero; add-on death benefits also terminate upon spousal continuation.
In certain states, Jackson reserves the right to refuse any subsequent premium payments.
Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company® or Jackson National Life Insurance Company of New York® and do not apply to the principal amount or investment performance of a variable annuity’s separate account or its underlying investments. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased or any affiliates of those entities, and none makes any representations or guarantees regarding the claims paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York.
Add-on benefits are available for an extra charge in addition to the ongoing fees and expenses of the variable annuity. Only one add-on living benefit and one add-on death benefit may be elected per contract. Once elected, benefits may not be canceled or changed; please see prospectus for specific benefit availability. The long-term advantage of the add-on benefits will vary with the terms of the add-on benefit, the investment performance of the Variable Investment Options selected, and the length of time the annuity is owned. As a result, in some circumstances the cost of an option may exceed the actual benefit paid under that option.
On the contract anniversary on or immediately following the designated life’s attained age 59½, the for-life guarantee becomes effective provided: 1) the contract value is greater than zero and 2) the contract has not been annuitized.
The timing and amounts of withdrawals have a significant impact on the amount and duration of benefits. The closer you are to retirement may provide a more reliable forecast of your needs to make withdrawals prior to the ages where certain benefit features are locked in. Conversely, the younger ages may provide less reliable forecasts. Consult your representative or retirement planning agent as to the amount of money and age of the owner/annuitant and the value to you of potentially limited downside protection these GMWBs may provide.
Variable annuities (VA775, VA775-CB1, ICC18 VA775, ICC18 VA775-CB1, VA790, VA790-FB1, ICC17 VA790, ICC17 VA790-FB1) are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA775NY, VA775NY-CB1, VA790NY, VA790NY-FB1) by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. These contracts have limitations and restrictions. Jackson issues other annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.
Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York. Jackson National Life Distributors LLC.
About Fidelity Institutional Asset Management
Fidelity Institutional Asset Management is one of the largest investment management organizations serving the U.S. institutional marketplace.* It works with financial advisors and advisory firms, offering them resources to help investors plan and achieve their goals; it also works with institutions and consultants to meet their varying and custom investment needs. Fidelity Institutional Asset Management is a gateway to Fidelity’s original insight and diverse investment capabilities across equity, fixed income, high-income, and global asset allocation. For more information, visit www.institutional.fidelity.com. Fidelity and Jackson are independent unaffiliated companies.
*Fidelity Institutional Asset Management is a division of Fidelity Investments, a diversified financial services company, with assets under administration of $7.7 trillion, including assets under management of $2.8 trillion as of June 30, 2019.
1 LIMRA/Secure Retirement Institute, US Individual Annuity Participants Report 4Q YTD 2018. Jackson ranks #1 for total variable annuity sales out of 40 companies that reported sales to the LIMRA/Secure Retirement Institute in 4Q YTD 2018.
2 Select up to a maximum of 99 investments and adjust options or allocations up to 25 times each contract year without transfer fees. To prevent abusive trading practices, Jackson restricts the frequency of transfers among Variable Investment Options, including trading out of and back into the same subaccount within a 15-day period.
Patrick Rich, Director, External Communications