Jackson National Life Insurance Company
(Jackson) today launched MarketGuard Stretch, a new option for policyholders of the Perspective family of variable annuities. MarketGuard Stretch is a guaranteed minimum withdrawal benefit (GMWB) that allows beneficiaries the flexibility to spread distribution payments over their lifetime, keeping more money in a tax-deferred account for continued growth potential.
With MarketGuard Stretch, Jackson aims to assist contract owners with legacy planning – policyholders can provide for potentially young and inexperienced beneficiaries by avoiding a lump sum death benefit in favor of longer-term distributions. The beneficiary’s required minimum distributions (RMD) will be determined annually based on the current account value and life expectancy.
“MarketGuard Stretch is the first stretch-friendly GMWB in the industry, allowing us to enhance the value proposition of variable annuities and expand Jackson’s relevance to a wider market,” said Clifford Jack, head of retail for Jackson. “Jackson remains dedicated to providing customizable withdrawal benefits that meet the needs of financial advisers and enable them to find the right solutions for their clients.”
MarketGuard Stretch provides contract owners with a higher level of control over beneficiaries’ distributions, allowing wealth to be spread to future generations. The withdrawal benefit can also help guarantee return of premium on a stretch contract over a number of years, regardless of investment performance. Policyholders can take up to 5.5 percent of their protected balance each year, or their stretch RMD, if higher, depending on their age at the time of the first withdrawal. The options allow for distribution of the original investment amount without risking an excess withdrawal.
In some circumstances, remainder beneficiaries may also elect to continue the MarketGuard Stretch benefit, guaranteeing they will receive at least the remaining protected balance back while remaining in a tax-deferred contract. Contract owners can choose from more than 25 money managers and can invest in customized portfolios based on their individual goals and risk tolerance.