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Jackson Launches LifeGuard Freedom 6 Net

Jackson National Life Insurance Company has launched LifeGuard Freedom 6 Net, a guaranteed minimum withdrawal benefit that gives investors with an opportunity to help offset their tax liability by increasing their available withdrawal amounts to generate more income.

According to Jackson, an optional benefit is also available for an extra charge, in addition to ongoing fees and expenses of variable annuity, within its perspective family of variable annuities. The contract holders who select LifeGuard Freedom 6 Net can lock in gains to their guaranteed withdrawal balance every year if their contract value increases by an amount that exceeds premium payments adjusted for withdrawals.

The investors may have an opportunity to enhance their guaranteed withdrawal balance with a 6% annual bonus for at least the first 10 contract years in which they do not take withdrawals. When the time comes to take withdrawals, investors can lock in guaranteed lifetime income at age 59½.

The contract holders may also withdraw between 4% and 7%, depending on their age at the time of first withdrawal, of their guaranteed withdrawal balance every year for life. Furthermore, if there are earnings in contract, investors may gross up their withdrawals to cover all or a portion of their tax liability, said the company.

In addition, adjustment allows contract holders to compensate for a greater tax burden, net the same after-tax withdrawal amount every year and better plan for retirement.

LifeGuard Freedom 6 Net is offered with a joint option to provide guaranteed lifetime income for customers and their spouses. As with many of optional benefits available within the company’s variable annuities, LifeGuard Freedom 6 Net does not force asset allocation. The contract holders can also start and stop withdrawals as desired.