When it comes to preparing for your family’s financial future, there are a lot of options to consider. Life insurance and annuity products can set you up for success later in life and protect your family after you pass away. With so many of these products on the market today, it can be difficult to determine which ones are the right fit for your family.
While you’re searching for life insurance products, Jackson National Life is a company that you might come across. While Jackson National Life doesn’t currently offer life insurance products, they do offer annuities. Here’s what you need to know about Jackson National Life before purchasing a policy.
About Jackson National Life
Jackson National Life Insurance was founded in 1961 and is based in Lansing, Michigan. Through the 1960s, ‘70s, and ‘80s, Jackson National Life sold term life insurance and had an independent agent model. A British insurance company named Prudential PLC purchased Jackson National Life in 1986, which is when they started focusing on their annuity business.
Contrary to what its name suggests, Jackson National Life Insurance no longer sells life insurance. However, they are the largest provider of annuity products in the United States.
Types of Products Available
Although Jackson National Life no longer offers life insurance, they do offer a wide variety of annuity products. Annuities are financial products that you pay into over time, which can allow your money to grow tax-deferred. While most people use annuities for retirement planning, you can use them for a wide variety of other purposes as well. Here are the types of products Jackson National Life offers.
With a variable annuity, the money you invest is spread across many different investment options. Having a diverse portfolio allows for more potential growth, but it also comes with the risk of financial loss. Variable annuities are designed to grow tax-deferred with all the tax benefits of a traditional annuity. Jackson National offers four different types of variable annuities with varying risk levels. These annuities also offer add-on death benefits to protect your family in the event of your passing.
Registered Index-Linked Annuities
Registered index-linked annuities, or RILAs, are designed to provide a balance of growth and security. RILAs are tied to market indexes, so they provide some diversification while also minimizing risk. Jackson National Life offers two RILAs, which you can customize to suit your needs. These annuities grow tax-deferred over time.
Fixed Index Annuities
Jackson National Life offers two different options for fixed index annuities. Fixed index annuities allow you to earn interest based on the growth of an associated market index. However, your principal investment is protected from financial loss with this type of annuity. These annuities grow tax-deferred and can serve as guaranteed income in retirement.
Fixed annuities are designed for investors who want to grow their wealth while minimizing risk. With this annuity, your money doesn’t go into the stock market. You earn a guaranteed fixed interest rate on this annuity. While this doesn’t provide as much growth as other types of annuities, they provide steady growth, tax deferral, and the option of a death benefit to protect your families. Fixed annuities are also available with a variety of payout timelines to choose from, depending on when you’ll need to access it.
Since Jackson National Life no longer offers life insurance policies, they don’t have riders available in the traditional sense. However, they do make it easy to customize your annuities to meet your needs. They have annuities available at a wide range of risk and growth levels, so you can select the one that makes the most sense for your financial preferences. Many of Jackson National’s annuities also come with death benefits available. This is very helpful if you want to use your annuity as part of your estate planning.
Unique Features of Jackson National Life Insurance
Jackson National Life Insurance sets itself apart by being the largest provider of annuities in the United States. Customers can use annuities on their own as a retirement planning tool, but they can also use them in addition to life insurance as part of their estate planning.
Jackson National Life Insurance has used an independent agent model for a very long time. This means they work with financial professionals to sell their products, rather than having a team of agents in-house. It’s important to note that these agents receive a commission when they sell to you. This means that they are highly incentivized to recommend annuities to you, even if it’s not necessarily in your best interest.
The company also provides a wide range of educational financial planning tools on its website. These include retirement planning calculators as well as a wide library of educational content to browse through. This can help you choose the best annuities for your needs.
When making any long-term investment like an annuity, it is very important to consider the company’s financial ratings. You’ll want to make sure that the company is stable enough to pay its customers’ claims on time regardless of the current financial climate.
There are many organizations that assess insurance and annuity providers for financial stability. Of these, AM Best is the most well-known. Right now, Jackson National Life has an AM Best rating of A. While this is not the highest rating possible, it is still very good and shows that the company has the capacity to pay its claims in an economic downturn.
Jackson National Life also has an A rating from Fitch, an A rating from Standard & Poor’s, and an A2 rating from Moody’s Investor Service. All of these indicate that Jackson National Life is currently strong financially.
Reviews of Jackson National Life Insurance
Customer reviews are another important factor to consider when selecting financial products like annuities. These reviews can give you an idea of what to expect if you work with this company. However, it’s also very important to take these reviews with a grain of salt, as everyone has their own unique experiences.
Jackson National Life Insurance is not currently BBB accredited. They have also received many negative reviews on the BBB website. Many of these reviews cite poor communication and long claims processing times as the cause of their negative experience.
Jackson National Life Insurance Application Process
Jackson National Life Insurance sells its products through independent agents. This means that you cannot purchase these products on their website. However, they do have several retirement planning tools on their website to help you identify which annuities would be the best fit for you.
In order to purchase an annuity from Jackson National Life Insurance, you will need to contact them directly, and then they can put you in touch with an agent, based on your needs. They have a toll-free phone number that you can call, or you can reach out via email. There is no way to get a quote or purchase an annuity directly on their website.
Once you have purchased an annuity product, you will be able to manage it online. You can create a secure account on their website to make your payments and manage your annuity’s growth. You can also access all of Jackson National’s forms on their website, and you can also file beneficiary claims as necessary.
Is Jackson National Life Insurance Legit?
Yes, Jackson National Life Insurance is a legitimate company. They are one of the leading providers of annuity products in the United States. They have a long history of success and have good financial ratings right now.
However, there are many things to consider before purchasing a financial product from Jackson National Life Insurance. The first thing to consider is that they don’t actually sell life insurance anymore. If you’re looking for a standard term or whole life insurance policy, you aren’t going to find it here. However, they do still pay claims from existing life insurance policies set up in previous decades.
Annuities can be a helpful way to supplement your retirement savings. They guarantee some form of consistent income in retirement, which provides peace of mind for many people. Many annuities also come with a death benefit option. This would provide a payout to your designated beneficiaries if you were to pass away, much like a life insurance policy would.
Jackson National offers a wide variety of annuity products, which gives you some flexibility when planning for your retirement. You can select the products you need based on your individual risk tolerance and the type of investments you want to make. This helps this company stand out from others, as they offer a wider range of choices for their clients.
However, annuities aren’t necessarily designed to help with end-of-life expenses. If your main concern is covering funeral costs and supporting your dependents after you pass away, you’ll be better off with a traditional life insurance policy from another company. Annuities are best used in conjunction with other financial planning tools, not as your entire financial planning strategy.
It’s also important to note that Jackson National Life Insurance has received many negative reviews online. Many consumers noted that they had a hard time getting in touch with their customer service team, and even when they did, response times were slow. If you’re looking for a financial planning company that is going to be very responsive, this might not be the best option for you.
Overall, this could be a good choice if you are in the market for an annuity. If you are looking for a traditional life insurance policy, it’s best to look elsewhere. If you aren’t sure what type of insurance products you need or what company to work with, consider seeking advice from an independent insurance agent. They are highly familiar with the industry and can help you find options that make sense for your individual needs.