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Jackson National Life Insurance Company® originated in 1961 as a family-owned business. It wasn’t until 1982 that the company began to experience massive financial growth, as it saw its sales jump from $50 million to $162 million over that year. Today, it has firmly established itself as one of America’s top annuity companies with nearly $294.6 billion in total assets.
All annuity and life insurance companies receive a set of rigorous financial ratings from the largest agencies in the U.S.: Fitch, A.M. Best, Moody’s and S&P. These firms have awarded Jackson with impressive A, A, A2 and A grades, respectively.
Annuity Type
Minimum Initial Premium
The Elite Access® II annuity from Jackson is a variable annuity that allows you to grow your funds on a tax-deferred basis. Of course, once you begin taking payments and withdrawals from the account, you’ll begin being charged income taxes. This can be integral to getting your retirement assets to the point to where you want them. In turn, it’s an annuity best served for those looking for long-term savings, as you’d have a harder time taking advantage of the tax deferral over a shorter period. The max issue age for this annuity is 85.
This annuity involves an investment platform whereby clients can play a major role in building their annuity portfolio. There are essentially four major parts to this system: equities, fixed income securities, alternative assets and alternative strategies. Investments such as fixed income and equities are fairly conservative. As a result, they have lower return potential but also less possibility for downside. On the other hand, alternative investment ideologies are a bit riskier, but offer the chance to gain stronger returns.
There are just about 100 different investments that clients can select from, with fees ranging from 0.53% to 2.41%. Out of those choices, though, you can only select as many as 99 investments. In order to fan the growth flames of your investments, Jackson allows clients to select either monthly, quarterly, semi-annual or annual rebalancing options, along with tax- and fee-free trades and transfers 15 days a year.
Many annuities include an annual contract maintenance charge, and the Elite Access® annuity is no exception. This fee is $50 for account holders in every state but New York, where the rate is $30. However, if you can manage to have an account or withdrawal value of at least $50,000, you can waive this annual charge.
There is also a 1.00% core contract fee included with this annuity. This is meant to protect Jackson from the many risks that annuitants, those who receive an annuity, present a company, while the latter is more clerical.
Jackson gives clients the option to withdraw up to 10% of their remaining premium payment, or the greater of their interest earnings, free of charge, once a year. You will be charged an annually declining 6.5%, 6%, 5%, 4% or 3% fee for any amount you withdraw past that initial 10%, until you’ve been an account holder for more than five years. At that point, all withdrawal fees are dismissed.
If you begin taking payments from your annuity before the age of 59.5, you may find yourself subject to a 10% bonus tax from the IRS.
When attempting to figure out the return possibilities of an annuity, many factors come into play. This problem thickens when utilizing a variable annuity, as the areas of the market that your money is invested in vary drastically from annuitant to annuitant. Assuming that all of the above fees are charged to your account, and you make full withdrawals, the potential for growth seems promising. However, you can never be too sure when it comes to investments.
Annuity Type