Jackson National Life Insurance Co., a Lansing, Mich., unit of Prudential PLC, launched a guaranteed minimum withdrawal benefit for its variable annuities.
The LifeGuard Freedom DB rider features an enhanced death benefit option, Jackson said Monday. The rider allows investors to "generate lifetime income while also providing a legacy for their heirs." The benefit amount will not decrease, provided withdrawals do not exceed the guaranteed annual limit or minimum required distribution, and investors can choose how to distribute assets to their beneficiaries.
LifeGuard Freedom DB allows investors to establish a guaranteed lifetime withdrawal stream of up to 7%, with a 7% benefit increase each year for at least the first 10 years of the contract, if no withdrawals are taken in that year.
The rider is available for an additional cost within Jackson's Perspective family of variable annuities, as well as its Retirement Latitudes variable annuity.
Jackson also said it has extended the bonus period for its LifeGuard Freedom optional living benefits, providing the potential for a bonus period of greater than 10 years.
LifeGuard Freedom also now offers a 200% guaranteed withdrawal benefit adjustment for premiums received before the contract's first anniversary, as well as a provision that gives contract holders an opportunity to increase their guaranteed annual withdrawal percentages as they get older and potentially need additional income, Jackson said.
In addition, Jackson said it has removed the 300% cap on its FutureGuard 6 guaranteed minimum income benefit base to give pre-retirees more opportunity to capture growth in their investments.
The unit also added two money managers and six portfolios to its investment lineup.
Jackson had $82 billion of assets under management as of June 30.
