What will be covered in this annuity review?
In this review of the Jackson National Life Action One Fixed Annuity, we will be going over the following details:
- Type of annuity
- How the annuity works
- Advantages and drawbacks
- How an advisor might “pitch” the annuity
- Where the annuity might work well
- Where the annuity might not be a good fit
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you are considering the purchase of a fixed rate annuity because you would like to attain a set rate of interest, protection of your principal, and tax-deferred savings, along with the assurance that you will have an ongoing income stream during your retirement years, then this type of annuity could be a good option for you.
But before you run out and sign on the dotted line, there are some things you need to know about fixed annuities, because oftentimes when things sound too good to be true, they usually are!
Over the past decade or so, fixed annuities have actually become quite popular. This is particularly the case after the 2008 recession, and more recently, the 2020 COVID-19 outbreak and corresponding stock market dip.
This surge in demand is due in large part to the fact that these financial vehicles can offer a guaranteed income stream during retirement (a big concern among retirees). This, in turn, can give you the peace of mind in knowing that you won’t outlive your income, no matter how long you may live.
There are other nice benefits, too, when you own a fixed annuity, such as:
- Tax-deferred growth of your money
- No loss of principal – even in a down market
- Additional options such as a death benefit, nursing home waiver, and/or terminal illness waiver
Because of the increased popularity of annuities these days, many insurance carriers are continuing to add new products to their proverbial shelves. There are also “new” ways to purchase annuities.
For instance, rather than sitting face-to-face with an insurance or financial advisor, many consumers get most (or all) of the pertinent information online. This is how many insurance carriers and agents pre-sell their annuities. Yet, while this can be extremely convenient, it could also leave you with more questions than answers.
Likewise, there are more financial and insurance professionals offering annuities now – but this is not necessarily a good thing, either. One of the main reasons for this is because, even though advisors work hard to offer the best possible information for their clients, annuity products are complex and have a lot of “moving parts”, even the insurance and financial advisors who sell them may not always be all that familiar with the intricate details about them.
Because annuities can oftentimes require a large percentage of your overall savings, you really need to know how the product will work because if you change your mind later and want to get out of it, you will find yourself paying a pretty hefty surrender penalty.
Annuity and Retirement Income Planning Information that You Can Trust!
If you are a newcomer to our Annuity Gator website, please allow us to introduce ourselves and welcome you here. We are a team of annuity specialists who focus on researching and reviewing all types of annuities. These reviews can be found in our Annuity Review Database on our website.
We have been offering in-depth annuity education for many years now, and because of that, we have become a highly trusted source of information about annuities online. Just like many other areas in life, though, there are a number of “copycat” annuity websites floating around on the Internet, too. And, even though some of these sites can offer you at least some basic information about annuities and how they work, what you will soon find out is that many of them are just simply reiterating what the information on our website already shows.
If you have been spending any amount of time on the Internet trying to locate annuity information, then you may have come across some highly conflicting details about these products. This, however, is not entirely surprising, because there are many different annuities available today, and everyone seems to have their own opinion about them.
It is possible, too, that in the recent past, you attended an annuity seminar where the presenter provided you with a free dinner or lunch, and then showed you how the Jackson National Action One fixed annuity (or some other similar product) works. You may have even moved forward with setting up a meeting with the presenter in order to determine whether or not this (or another) annuity will work, given your specific situation.
Our guess is that you are on our website right now in hopes of finding some additional information about the Action One fixed annuity from Jackson National – and if so, you are definitely in the right place.
We offer a massive annuity review database on our website, and it is continuing to grow every day with information about all types of fixed, indexed, variable, and deferred annuities.
Although many other websites may try to lure you in with the promise of high returns and low fees, here at AnnuityGator.com, you will discover all of the good, the bad, and also the ugly with regard to annuity products. This is because we feel that knowing the entire picture is really the only way to make a well-informed purchasing decision.
While we do feel that annuities can be a great product to add to your portfolio, this is really on the case if the annuity fits in well with your other short- and long-term financial goals and objectives.
So, if you’re ready to get started with this review, let’s jump right in!
The Jackson National Life Action One Annuity at a Glance
|Product Name||Life Action One Annuity|
|Type of Product||Fixed Annuity|
|S&P Rating||A+ (Strong)|
|Phone Number||(877) 565-2968|
Opening Thoughts on the Jackson National Life Action One Annuity
Jackson National Life Insurance Company has been in operation since 1961. While it began as a small family-owned business, over time the company has grown into a multi-billion dollar organization.
As one of America’s top annuity providers, Jackson is leading the charge to educate Americans about the importance of reliable retirement income, and to ensure the value of annuities is a foundational component of retirement planning.
Out of the 50 largest individual U.S. life insurance companies (ranked by total statutory assets), Jackson ranks as the:
- 7th largest U.S. life insurance company ranked by total statutory assets.
- 15th largest U.S. life insurance company ranked by general account assets.
- 21st largest U.S. life insurance company ranked by statutory surplus plus asset valuation reserve and interest maintenance reserve.
Based on the company’s financial strength and stability, along with its positive reputation for paying out its policyholders’ claims, Jackson has earned high ratings from the insurer rating agencies. These include a(n):
- A (Excellent) from A.M. Best
- A+ (Strong) from Fitch Ratings
- A+ (Strong) from Standard & Poor’s
- A1 (Good) from Moody’s Investor Service
Just a few of the other accolades that define Jackson include its ranking as:
- #1 seller of annuities in the U.S. during 2019
- #1 in variable annuity sales in the U.S. during 2019
- 7th largest seller of fixed index annuities in the U.S. during 2019
The demand for fixed (and fixed indexed) annuities – which are always backed by insurance companies – has been steadily increasing ever since stock market volatility has become the norm, rather than the exception over the past several years.
In fact, the biggest fear on the minds of many retirees these days is running out of money. Fewer people are retiring with employer-sponsored pension plans, so they have to “create” one for themselves. This is what a fixed annuity can do.
On the other hand, due to the historically low-interest-rate environment of late, the return that is offered by most fixed annuities is so low that it typically can’t even meet, much less beat, inflation.
Also, annuities are considered to be longer-term financial options. So, if you purchase one, and then you change your mind down the road and you want to cancel it, you will usually incur a surrender charge. This is why it is essential to understand just exactly what it is that you are getting before you make a commitment.
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 additional information on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Jackson National Life Describes the Action One Fixed Annuity
According to its product literature, Jackson National describes the Action One annuity as a flexible premium deferred fixed annuity that can provide you with a lengthy list of benefits, including:
- Preservation of principal
- Competitive interest rates
- Your choice of interest rate guarantee periods
- Tax-deferred interest accumulation
- Options for guaranteed retirement income, including an income for life (no matter how long you may need it)
Jackson goes on to state that the Action One is a long-term, tax-deferred vehicle that is designed for retirement. This annuity can preserve and grow your nest egg in three different ways, including:
- A first-year bonus. Action One offers a first-year interest rate bonus to help boost your annuity’s accumulated value over the years.
- Competitive Interest rates. You may elect to have your initial interest rate – excluding your first-year bonus – guaranteed for either one, three, or five years. After that, the interest rate is guaranteed to never fall below the contract’s declared guaranteed minimum interest rate.
- Tax advantages. Interest accumulates free of current taxation until you withdraw it.
There are a few other features of note here with regard to the Action One annuity from Jackson National. For instance, the annuity includes an extended care benefit whereby if you (or the joint owner, if applicable) are confined to either a nursing home or a hospital for at least 90 consecutive days, you may make a one-time withdrawal of up to 100% of the contract’s value without incurring a surrender charge.
Likewise, there is also a terminal illness benefit on the Action One annuity. In this case, if you are diagnosed with a medical condition that is expected to result in death within the next 12 months, you may withdraw up to 100% (one-time only) of the contract’s accumulated value without incurring a surrender charge.
One of the other guarantees that you will find on the Jackson National Life Action One fixed annuity is the ability to convert the contract into an income stream. These payments can be received for a set period of time, or even for the remainder of your lifetime.
For more in-depth details, you can check out the Action One annuity fact sheet HERE.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
As an educated consumer, you may have already noticed that insurance companies do a very good job of making their products sound enticing. For instance, a guaranteed minimum rate of return, plus a lifetime income stream, might appear to be ideal. But, as radio announcer Paul Harvey used to say, you need to know “the rest of the story.”
When dealing with fixed annuities, for example, some of the key concepts you’ll hear an insurance or financial advisor say typically include:
- Guaranteed return of premium
- Guaranteed interest rate(s)
- Lifetime income
But, when you delve a little deeper, you will notice that the interest rate is oftentimes on par with what you could get with a money market or bank savings account – products that won’t lock up your money for several years or charge you a surrender fee to access it. With that in mind, you really need to consider both the pros and the drawbacks of fixed annuities before purchasing one.
What About the Fees on the Jackson National Action One Fixed Annuity?
While there is no up-front commission charged when purchasing the Action One annuity from Jackson National Life Insurance Company, you could still incur a loss of principal if you decide to surrender, or cancel, the annuity before a certain time period has elapsed.
Jackson National Action One Fixed Annuity Surrender Charge Schedule
In addition to paying a surrender charge, you may also incur tax on any of the gain that you withdraw. And, if you make such a withdrawal before you have turned age 59 ½, you could also be responsible for paying an “early withdrawal” penalty of 10% from the IRS.
The Annuity Gator’s End Take on the Jackson National Action One Fixed Annuity
Who might be a good fit for this annuity?
This particular annuity could work best for those who are seeking the following features:
- Guaranteed retirement income stream
- Safety of principal in any type of market
- A guaranteed rate of return
Who might want to consider alternate options?
The Jackson National Life Action One fixed annuity might not be a good fit for those who:
- Need or want access to their principal penalty-free for the first nine years after purchasing the annuity
- Want a higher rate of return on their money
- Do not plan on using the guaranteed lifetime income feature
There are a lot of important factors that should be considered when you are trying to determine which annuity is right for you – or even if any annuity will fit into your overall financial picture.
In any case, though, annuities should always be considered as long-term financial endeavors, and because of that, you should feel comfortable that an annuity you ultimately go with can help you to reach your goals.
If you are still leaning towards the purchase of a fixed annuity like the Action One from Jackson National Life, then you can certainly be assured that your principal will be safe and that you will earn a steady, tax-advantaged gain in the account.
However, even with these nice benefits, this annuity could still fall somewhat short – and quite frankly, there very well could be a better option out there for you – particularly if you are focused on getting a guaranteed lifetime income in retirement AND the opportunity to earn a higher rate of return.
If you still have any questions with regard to whether or not the Jackson National Action One fixed annuity is right for you – or, even if you just simply need some additional guidance about annuities in general – then please feel free to reach out to us directly via our secure contact form here.
Any Additional Questions on the Jackson National Action One Annuity? Did You Notice Any Mistakes in this Annuity Review?
Although this review of the Jackson National Action One Annuity was a bit lengthy, we would much rather provide you with too many details as versus not nearly enough. Therefore, if you did find this review helpful to you, then please feel free to share it with others that you think might benefit, too.
We also understand that annuity product information can change frequently. Therefore, if you happened to notice that any of the information in this annuity review was incorrect, then please let us know and we will do our best to get that updated as soon as possible.
Also, if this annuity review made this product even more confusing – and/or if it happened to spark any additional questions or concerns – please let us know that, too and we will work to make the information clearer.
Are there any other annuity reviews that you would like to see posted in our annuity review database?
If so, we’ll get on it! Just simply tell us the name of the annuity (or annuities, if more than one) and our highly trained team of annuity “geeks” will start working on those – so be sure to check back soon for updates, as well as a whole host of new annuity reviews!
The Annuity Gator
P.S. If you would like to read more of our Jackson National Life annuity reviews here are some links to check out:
- Independent Review of the Jackson National Elite Access Advisory Variable Annuity.
- Jackson National Annuity Review – The Life Action Fixed Annuity.
- Independent Review of the Jackson National Perspective Advisory Variable Annuity.
- Independent Review of Jackson National Life BonusMAX Two Annuity.
- Independent Review of the Jackson National Life Perspectives ll / Lifeguard Freedom 7 Net Variable Annuity – [November 2018 Update].
- Independent Review of Jackson National Life MAX One XL Fixed Annuity.
- Independent Review of the Jackson National OptiMAX Three Fixed Annuity.
- Independent Review of the Jackson National RateProtector Multi-Year Guaranteed Annuity.
- Independent Review of Jackson National Life BonusMAX One Annuity.
- Independent Review of Jackson National Life MAX XL Fixed Annuity.
- Independent Review of the Jackson National Life OptiMAX 100 Fixed Annuity.
- Independent Review of the Jackson National Perspective L Series Variable Annuity.
- Independent Review of the Jackson National Elite Access Advisory Variable Annuity.
- Independent Review of Jackson National Life BonusMAX Annuity.
- Independent Review of Jackson National Life MAX One Fixed Annuity.
- Independent Review of the Jackson National Life OptiMAX One Fixed Annuity.
- Independent Objective Review of the Jackson National Life Market Protector 7 Year Annuity.
- Independent Objective Review of the Jackson National Life MarketProtector 5 Year Annuity.