Wink’s Sales and Market Report for the first quarter of 2019 shows that the sales of multi-year guaranteed annuities (MYGAs) have grown almost 80% in the last year, and Jackson National Life Insurance Company is jumping on board. The launch of Jackson RateProtector, a single premium MYGA was announced yesterday, offering consumers the opportunity to protect and grow their assets through guaranteed interest rates that will not fluctuate during a selected time period. The press release also stated that consumers will have the ability to defer taxes on any earnings until money is withdrawn.
“At Jackson, we’re pleased to honor our commitment to continually enhance our spectrum of quality product offerings to serve the long-term needs of consumers who are preparing for their financial futures,” said Alison Reed, executive vice president of Operations for Jackson National Life Distributors. “The release of Jackson RateProtector allows the company to meet advisors and their clients where they are in the planning process, while providing access to a vehicle that can ensure a portion of their savings experiences reliable growth while staying protected from the unpredictability of the market.”
Key features of the new product include:
- Interest Rate Guarantees: Rates will be guaranteed for the selected 3-, 5-, or 7-year period. After that, no withdrawal charge or Market Value Adjustment would apply. Renewal interest rates will be guaranteed for one-year period, never falling below the contract’s declared guaranteed minimum interest rate.
- Market Value Adjustment (MVA): Jackson applies an MVA to certain amounts that are withdrawn or annuitized. The MVA may result in an increase or decrease to amounts that are removed from the contract.
- 10% Free Withdrawals: In the first contract year, owners may take up to 10% of their initial premium without incurring a withdrawal charge or MVA. Every following contract year, owners may withdraw up to 10% of the accumulated contract value.
- Tax Deferrals: RateProtector is a tax-deferred annuity, which means the contract’s earnings are sheltered from taxes that can erode savings until withdrawal.
- Death Benefit: Guaranteed death benefits provide family and legacy protections, with options to preselect an income stream for beneficiaries in addition to a lump sum.
- Terminal Illness and Extended Care Waivers: After the first year of the contract, if an owner is diagnosed with a terminal illness or confined to a nursing home or hospital for 90 consecutive days, up to 100% of the accumulated contract value may be withdrawn (one time only) without incurring a withdrawal charge.
“As financial professionals continue to work with a trusted annuity partner like Jackson, they can now offer a product to more risk-adverse clients,” Reed said. “Furthermore, Jackson RateProtector allows contract holders to protect their assets and leave a legacy for their family, helping to ensure their loved ones can remain financially secure.”
Written by Rachel Summit