What’s Covered In This ReviewIn this review we’ll cover the following information on the Jackson National Life BonusMAX Two Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in. We make the complex, simple.
If are considering the purchase of a financial vehicle that can provide you with the security of principal, as well as an ongoing stream of income in retirement, then the Jackson National Life Insurance Company’s BonusMAX Two Annuity could be a good option for you. This fixed annuity offers safety from market ups and downs, as well as other guarantees that have been built directly into the contract. But, prior to moving ahead with the purchase of this, or any other annuity, it can be extremely advantageous to have a deeper understanding of how fixed annuities work, and how they may – or may not – work well with your particular financial objectives, both now and in the future. Over the past several years, fixed annuities have really risen in popularity. One of the key reasons for this is because these annuities can offer you a guaranteed income stream during retirement – and because of this, along with all of the other benefits that they provide, the number of financial advisors who offer these types of annuities has also risen a great deal. Unfortunately, though, some of the advisors who offer annuities may not always be presenting them in the right way. Not that they are trying to do their clients wrong, but more so because annuities can be a somewhat confusing product – even for some financial advisors. So, without the proper training and experience, some advisors may not be presenting annuities the way that they should be presented. They may also not be able to answer all of the more in-depth questions that you may have – but are necessary to ask in order to make a well-informed annuity purchase decision. Today, in fact, there are many annuities being introduced into the marketplace that contains lots of “bells and whistles.” But, while these can allow people to essentially “customize” the product somewhat, they can also make these annuities even more challenging to understand – even if you’re read through all of the “fine print.” When you are considering the purchase of any annuity, though, steps should ideally be taken to ensure that you have a firm grasp on what it is that you are really buying – particularly because you could be plunking down a substantial amount of your overall retirement savings for it. In addition, annuities should always be considered as a long-term financial vehicle. Once you have purchased one, it can be difficult – and quite costly – to get out if you happen to change your mind.
Annuity and Retirement Income Planning Information that You Can TrustIf you have not been to our website before, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who have dedicated ourselves to providing in-depth and unbiased annuity reviews. We’ve been doing this quite successfully for many years, and because of that, we have become a well-known and highly trusted source for annuity information. If you have looked for any information on annuities online, it is likely that you have come across many details – some of them even conflicting. This, however, is not at all surprising. These can be very complex products, so it is not uncommon for there to be a great deal of differing content about them. You also may have recently attended an annuity seminar where, in return for letting them discuss these products with you, the presenter offered you a free dinner or lunch, and has possibly followed up and asked you to meet with them. In fact, hoping to find more information about annuities may even be what has ultimately led you to our website right now. We will say that, even though there are some other websites out there that are also devoted to marketing their annuities for sale, many of these will often times try to attract visitors by touting claims such as the following:
- Highest annuity payouts
- Low fees
- Guaranteed income for life
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Jackson National Life BonusMAX Two Annuity
|Product Name||BonusMAX Two|
|Issuer||Jackson National Life Insurance Company|
|Type of Product||Fixed Annuity|
|Standard & Poor's Rating||AA (Very Strong)|
|Phone Number||(877) 565-2968|
Opening Thoughts on the Jackson National BonusMAX Two AnnuityJackson National Life Insurance Company, which is headquartered in Lansing, Michigan, initially came into the insurance arena in 1961. While this company had humble beginnings as a family-run entity, it has since grown to be a multi-billion dollar insurer. It has also achieved some nice accolades along the way. For example, Jackson National is ranked by LIMRA as being the second largest seller of annuities in the United States, as well as the eighth largest life insurance company in terms of total statutory assets by SNL Financial. Because of the company’s strong financial footing, and its timely payment of its policyholders’ claims, Jackson National Life Insurance Company has been provided with some high ratings from the insurer rating agencies. These include the following:
- A+ (Superior) from A.M. Best
- AA (Very Strong) from Fitch Ratings
- AA (Very Strong) from Standard & Poor’s
- A1 (Good) from Moody’s Investors Service, Inc.
Before we get into the gritty details, here are some necessary legal disclosures…This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Jackson National Life Insurance Company has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners. For more details on how you can compare fixed annuities so that you have all of the key details that you need for making an informed buying decision, contact us so that you can obtain a free copy of our annuity report.
How Jackson National Life Insurance Company Describes the MAX Two Fixed AnnuityAccording to the Jackson National Life Insurance Company brochure on the BonusMAX Two fixed annuity, the BonusMAX Two is a flexible premium deferred fixed annuity that can offer the following benefits to those who own it:
- Competitive interest rates
- Preservation of principal
- Tax-deferred accumulation of interest
- Your choice of interest guarantee periods
- Options for guaranteed retirement income – including income for life
- ·First Year Bonus – The BonusMAX Two annuity offers a first-year interest rate bonus in order to help with “boosting” your annuity’s accumulation value over time.
- ·Competitive Interest Rates – With the BonusMAX Two annuity, you may elect to have your initial interest rate, which excludes the first year bonus, guaranteed for 1, 3, or 5 years.
- ·Tax Advantages – In this annuity, the interest in the account is allowed to accumulate free of current taxes, until you withdraw it.
There are other features on the BonusMAX Two annuity, as well, such as:
- Accelerated Benefit – If you happen to acquire certain types of health related issues, you may be allowed to withdraw up to 25 percent of the annuity’s accumulated value – without being subject to a withdrawal charge.
- Extended Care Benefit – If you – or the joint owner of the annuity – are confined to a nursing home in the future, due to medical necessity, or you are confined to the hospital, for 90 consecutive days, then you may be able to withdraw up to 100 percent of the accumulated contract value of the annuity without incurring a withdrawal charge.
- Terminal Illness Benefit – If you have been diagnosed with a medical condition with an anticipated life expectancy of 12 months or less, then you may be able to withdraw up to 100% of your annuity contract’s accumulated value, without incurring a withdrawal charge.
- Death Benefit – The entire amount of your annuity’s accumulated value can be paid out to your named beneficiary (or multiple beneficiaries), who can elect whether they want to take these funds all at once, or rather as a series of payments.
How Financial Advisors May “Pitch” the BonusMAX Two AnnuityThe Jackson National Life BonusMAX Two annuity is a fixed annuity that can provide protection with a fixed rate of interest on your money. It can also offer you a guaranteed lifetime income in retirement. If an insurance or other financial advisor has already talked with you about the Jackson National Life Insurance Company’s BonusMAX Two annuity, then it is likely that he or she focused on various features that it provides, including the guaranteed rate, and the lifetime income. It is important to point out, though, that if you are being offered this annuity – or any other annuity, for that matter – by a commissioned sales person, then he or she is very likely to explain the product to you, highlighting all of its positive attributes. Because insurance and financial companies usually do a fantastic job of making sure that their products sound enticing, you may have even been leaning towards purchasing this particular annuity, based on the factors above. And, while these features can certainly provide you with some nice benefits, it is important that you know “both sides of the story.” With that in mind, we’re going to take a deeper dive into the BonusMAX Two annuity’s “fine print.” When taking a closer look at the footnotes in the BonusMAX Two literature, you may find the following in conjunction with this annuity’s features:
- First Year Bonus – First, with regard to the annuity’s first-year bonus, you will find that “As a result of the product’s first-year bonus, rates in subsequent years will be lower.” Therefore, you can’t really count on the rate that you get during the first year to be the rate going forward after that.
- Competitive Interest Rates – Next, when it comes to the annuity’s competitive interest rates, by reading a bit further, you will notice that the literature states that if you elect to go with the three-year or the five-year guarantee period, then the rate that is credited to your annuity contract will be lower than if the extended guaranteed period was not selected.
- Tax Advantages – Plus, there may even be an issue with the tax related advantages that are discussed in the product literature. This is because there are some states in the U.S. that will impose premium taxes – so you need to be sure that you are aware of where your state stands on this issue.
What About Fees on the Jackson National Life BonusMAX Two Annuity?On top of knowing how your money will ultimately perform in a fixed annuity, it is also a good idea to have an understanding as to the fees that you may be charged. That’s because an annuity’s charges and fees can have a substantial impact on the way that the account performs, as well as with the amount of income that you will be able to obtain in the future. In many annuities, there will be an up-front commission that is paid to the advisor who sold the product to you. Typically, there will also be an ongoing contract and/or administrative charges. Also, if you wish to withdraw any of your money prior to converting the annuity to an income stream, you could be hit with a surrender penalty if you take out more than your allotted annual amount. (Usually, this limit is 10 percent of the contract value per year – until the surrender charge period has ended). [desktoponly]In the case of the Jackson National Life Insurance Company’s BonusMAX Two annuity, there are nine full years of surrender charges. These are outlined as follows:
|Completed Years Since Receipt of each Premium Payment||0||1||2||3||4||5||6||7||8||9|
The Annuity Gator’s End Take on the Jackson National Life BonusMAX Two AnnuityWhere it works best: The Jackson National BonusMAX Two annuity may work the best for those who are looking for the following:
- Safety of principal
- Guaranteed lifetime income
- Guaranteed rate protection – at least for a short period of time after purchasing the annuity
- Initial bonus to help boost the annuity’s accumulation
- Want access to most or all of your funds within the first nine years of the contract (during the surrender period)
- Are looking for a high rate of return on your money
- Do not intend to use the guaranteed lifetime income feature