Jackson National Life Introduces Select Annual Reset Fixed Index Annuity

Fourth quarter 2007 rankings show Jackson was the top seller of index annuity products in the bank channel and ranked eighth in index annuity sales across all distribution channels last year.

Now, Jackson National Life has introduced another consumer-friendly annuity: Select Annual Reset, a fixed index annuity that gives the client the potential to earn additional interest and several options for early withdrawal without penalty.

On top of the product’s guaranteed minimum interest rate and guaranteed minimum death benefit, investors can earn more interest based on the performance of two market indexes—Jackson National Life’s proprietary Multi-Strategy Index or the S&P 500^® Index—or a combination of both indexes.

When purchasing the annuity, consumers can choose from either a five- or seven-year term. Additionally, they can move money each year among a fixed account and the two index accounts. After the fifth contract year, contract holders have the option to convert their accumulation value into a stream of income without paying withdrawal charges.

Another client-friendly feature is the three percent annual Special Benefit Value, which increases the minimum guarantee in the event of the contract holder’s death, terminal illness, or confinement to a nursing home or hospital, or an IRS required minimum distribution at any time during the term of the contract.

Furthermore, Select Annual Reset offers several benefits that allow early withdrawals without penalty. Contract holders may withdraw up to 10 percent of their accumulation value each year with no withdrawal charges. The Extended Care Benefit allows contract holders to access up to 100 percent of the greater of the accumulation value or Special Benefit Value, in the event that they (or the joint owner) are confined to a nursing home or hospital for 90 consecutive days, beginning at least 30 days after issue.

According to Steve Kluever, Jackson National Life’s senior vice president for product management, Select Annual Reset reflects the company’s aim to offer products noted for their flexibility.

“Jackson’s approach to product design is to combine flexibility with transparency in order to create retirement income solutions that are both customizable and easy for advisers and their clients to understand,” Kluever said. “We continue to be proactive in educating advisers on the intricacies of fixed index annuities to help them understand how to effectively position FIAs in their clients’ portfolios.”