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Jackson National Life Insurance Review
By Aja McClanahan MONEY RESEARCH COLLECTIVE
Although this company’s name suggests otherwise, Jackson National Life Insurance Company is no longer in the life insurance business. It is, however, the number one provider of annuities in the U.S. Unlike life insurance products which pay out a cash benefit to your loved ones when you pass away, annuities are designed to help people preserve their wealth and provide additional income in the later stages of life.
Though annuities may not be the best solution for every situation, we think it’s a good idea to evaluate these products to maximize your retirement savings. Although Jackson National has a large offering of annuity products, there are four main types that we’ll cover: variable, fixed, fixed index and registered index-linked annuities. Let’s take a look at these options from Jackson National to see if they could be part of your financial strategy in retirement.
Jackson’s services
Jackson’s credentials
Jackson’s accessibility
Jackson’s customer satisfaction
Jackson National overview
Overall, Jackson National provides strategies and resources to help Americans protect and grow their assets. One such strategy is providing an additional income stream to retirees through its annuity products. Here are some pros and cons of Jackson National’s annuities:
Company summary
Jackson National’s services
Here, we’ll review Jackson National’s main annuity products to help you choose the best one for your needs.
What it offers
Even the best life insurance companies can’t offer additional income should you outlive your assets or have a higher cost of living in your retirement years than you initially anticipated.
Jackson National’s annuities can help you make up the difference between your retirement savings and other forms of retirement income like Social Security or a pension. If you don’t happen to need the money from your annuity right away, there are also options to let your money grow tax-deferred. Finally, there are add-on benefits that can guarantee income for life or provide death benefits to your loved ones.
Jackson National’s annuities
An annuity is a life insurance product that could stretch all or a portion of your savings over a longer period by providing a guaranteed income stream. You’ll pay premiums, either an initial lump sum or monthly, to keep the insurance contract active.
Jackson National’s annuity products share some common features:
- Tax-deferred growth
- Optional riders and death benefits
- Surrender periods (cannot withdraw cash during this time)
- 10% penalty for withdrawals before age 59½
- Distributions that are taxed as ordinary income
Annuity type
Suitable if
- You’re comfortable with risk and potential loss of value of your investment.
Key features
- Exposure to various asset classes
Rate of return
- 1%-3%
Annuity type
Suitable if
- You’re uncomfortable with risk and potential loss of value of your investment.
- Principal protection
- Guaranteed interest rate
Key features
- Assured returns
Rate of return
- 1%-3%
Annuity type
Suitable if
- You prefer principal protection with the option for index-related returns
- Principal protection
Key features
- Can earn additional interest tied to the performance of an index
Rate of return
- 1%-3%
- (Additional returns available based on a stock market index)
Annuity type
Suitable if
- You’d like more flexibility to choose your level of principal protection, and investment opportunities
Key features
- Multiple index options and principal protection levels
Rate of Return
- 1%-3%
- (Additional returns available based on a stock market index)
What it doesn’t offer
Although Jackson National can help you with strategies to protect your income in retirement, the company’s website reveals there are some services it doesn’t provide. Jackson National doesn’t provide tax, accounting or legal advice. Official company literature states that “You should depend on your own independent advisors” about any statements the company makes regarding any tax, accounting or legal matters.
Finally, not all products and product features are available in all states. For instance, you’ll notice that many products have different terms and features for New York residents.
Jackson National annuity cost
Each annuity product has unique features, options and riders that determine the cost of the annuity’s premium. The annuities mentioned here require a minimum single premium of $25,000, though you can start with more. Additionally, some fees could include increasing the cost of your annuities, such as fund management and withdrawal fees.
Jackson National’s credentials
Before placing your hard-earned money in one of Jackson National’s annuity products, you know more about the company’s background and credentials. In this section, we’ll review some company facts and its background to help you vet the financial services company better.
Jackson Financial Inc., incorporated in Delaware, is the holding company under which Jackson National Life Insurance does business. The company was previously a subdivision of the British financial services company, Prudential plc. However, in 2021 it was sold off as an independent company. Jackson National is now a publicly traded Fortune 500 company that’s listed on the NYSE under the ticker JXN.
Licenses and registrations
Jackson National is licensed to do business in 50 states and the District of Columbia. Under the National Association of Insurance Commissioners (NAIC) ID number 65056, the company is licensed to sell immediate, registered index-linked, deferred fixed, fixed index and variable annuities).
Awards and certifications
Jackson National has been rated for its financial strength by several independent rating agencies:
- A.M. Best: A (Excellent; third highest of 13 rating categories)
- Fitch Ratings: A (Strong; sixth highest of 10 rating categories)
- Standard & Poor’s (S&P): A (Strong; sixth highest of 21 rating categories)
- Moody’s Investor Services, Inc.: A2 (Good; sixth highest of 21 rating categories)
Jackson National also ranked as the number one seller of annuities in the U.S. during 2021 and number one in variable annuity sales in 2021.
Regulatory or legal actions
According to our research, there are no significant regulatory or legal actions against Jackson National. The company recognizes that the risk of litigation is inherent in its operations but that the outcome of most proceedings will not significantly affect the company’s financial condition or ability to pay its obligations. Jackson National’s publicly available financial documents reveal that the company maintains a contingency fund to deal with class action lawsuits and similar potential litigation.
Jackson National’s accessibility
Jackson has many departments with varying operating hours. The best way to reach the company is to refer to the contact us page on its website.
Availability
Jackson National’s automated phone service is available 24/7, while phone representatives are available from Monday to Friday from 8:30 AM to 7 PM EST.
Contact information
You can reach Jackson National’s general information department at (517) 381-5500 and the service center at 877-565-2968.
User experience
You can access your customer service portal at Jackson.com The pre-sales portion of Jackson National’s website features plenty of educational materials for each annuity product. You can access up to 12 PDFs with information on the products, disclosures, performance and more.
Limitations
Jackson National doesn’t appear to have a smartphone app for self-servicing. However, you can access the customer service portal through any mobile browser you’d use to access the internet.
Jackson National’s customer satisfaction
Jackson National doesn’t have much feedback on third-party review sites or from consumer advocacy organizations like the Better Business Bureau or Trustpilot. The NAICS website tracks a customer complaint index, dividing the company’s share of complaints in the U.S. market by the company’s share of premiums in the U.S. market.
The complaint index is 1.0, so a company with a complaint index of 2.0 means its complaint index is twice as high as expected in a given market. Jackson’s complaint record for the past three years is very low when compared to other companies in the insurance space:
- 2019- 0.15
- 2020- 0.16
- 2021-0 .08
Jackson National FAQs
How we evaluated Jackson National
To create this review of Jackson National, we consulted several sources, including the company’s website, third-party review sites, consumer advocacy, watchdog organization sites, and government regulatory sites.
Summary of Miami Herald’s Jackson National review
There are many types of insurance that can help you reach your financial goals. Jackson National’s annuity products are for a very specific subset of people: those who face the risk of outliving their retirement savings while requiring a stream of income to support their lifestyle. Due to the high barrier to entry and somewhat nominal returns on these financial products, we believe annuities should be used as a retirement solution only when absolutely necessary.
If you do go this route, you’ll want to pay special attention to credit ratings and the claims-paying ability of your annuity provider to ensure your investment is secure and that you’ll receive the income you’re promised. From our research, Jackson National would be a reasonable option to start exploring for your annuity needs.
Aja McClanahan is a writer that covers personal finance and a number of related topics. Her work and personal story of paying down over $120,000 in debt have been featured in publications around the web including sites like Money, CreditCards.com, Business Insider, Inc., Experian and many others.