New GMWB Combines Guaranteed Income with Innovative Death Benefit
Option
Jackson National Life Insurance Company®
(Jackson) today announced the launch of LifeGuard Freedom DB, a new
guaranteed minimum withdrawal benefit (GMWB) that features an enhanced,
innovative death benefit option. Available only with the election of
Jackson’s LifeGuard FreedomSM
GMWB, LifeGuard Freedom DB allows investors to generate lifetime income
while also providing a legacy for their heirs. The death benefit amount
will not decrease, provided withdrawals do not exceed the guaranteed
annual limit or minimum required distribution, and investors can choose
how to best distribute their wealth among beneficiaries.1
“Today’s retirement
landscape is extremely complex, and the challenges Boomers are facing as
they shift into the income distribution phase have been exacerbated by
the troubled economy,” said Clifford Jack,
executive vice president and chief executive officer for Jackson. “Insurance
companies have an unprecedented opportunity to help investors determine
the best path to achieving their retirement goals. Jackson is committed
to providing innovative solutions that can be customized according to
each individual’s objectives, coupled with
value-added wholesaling support to help advisers effectively address the
retirement needs of their clients.”
LifeGuard Freedom DB offers the same features as LifeGuard Freedom,
including the ability to establish a guaranteed lifetime withdrawal
stream of up to 7 percent2, with a 7-percent
benefit increase each year for at least the first 10 years of the
contract, when no withdrawals are taken in that year.2
LifeGuard Freedom and LifeGuard Freedom DB are both available for an
additional cost within the company’s
PerspectiveSM family of variable annuities, as
well as its Retirement LatitudesSM variable
annuity.
Jackson has also extended the bonus period for its LifeGuard Freedom
optional living benefits, providing the potential for a bonus period of
greater than 10 years.3 Additionally, LifeGuard
Freedom now offers a 200-percent guaranteed withdrawal benefit
adjustment for premiums received prior to the first contract anniversary4,
as well as a provision that provides contract holders with an
opportunity to increase their guaranteed annual withdrawal percentages
as they get older and potentially need additional income.5
In addition to updating its living benefits, Jackson has made several
enhancements to its optional death benefits, including:
-
Highest quarterly anniversary value death benefit option replaces the
annual step-up option previously offered on the company’s
death benefits;
-
New 6-percent Roll-up death benefit and 6-percent Combination Roll-up
and Highest Quarterly Anniversary Value death benefit options; and
-
Potential dollar-for-dollar withdrawal treatments for the roll-up
components of Jackson’s 5- and 6-percent
optional death benefits.
Finally, Jackson has removed the 300-percent cap on its FutureGuardSM
6 guaranteed minimum income benefit (GMIB) base, giving pre-retirees a
greater opportunity to capture growth in their investments. The company
also added two new money managers and six new portfolios to its
investment lineup.
“Jackson’s product
development initiatives are driven primarily by the input we receive
from our adviser partners, who help us gain a better understanding of
the constantly evolving needs of today’s
investors,” said Steve Kluever, senior vice
president of product and investment management for Jackson National Life
Distributors LLC. “We use that valuable
insight to develop benefits and features that address a broad range of
investor concerns and provide a diverse set of options from which
advisers can build customized solutions for their clients. The latest
enhancements to our variable annuity offering are part of Jackson’s
ongoing commitment to developing innovative products that allow Jackson
to improve its competitive position in the market.
