Independent Review of Jackson National Life BonusMAX One Annuity
What’s Covered In This Review
In this review we’ll cover the following information on the Jackson National Life BonusMAX One Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is used
- How it is most poorly used
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If you’ve been considering the purchase of a financial vehicle that can offer you guaranteed lifetime income in retirement, as well as the safety of principal during your working years, then the Jackson National BonusMAX One annuity may be a good option for you. That is because this annuity can provide you with a number of nice guarantees.
However, prior to moving forward with the purchase of this annuity – or any annuity, for that matter – it can be advantageous if you have more information on just exactly how the product works, and how it may – or may not – fit in with your overall financial situation.
Throughout the past decade or so, fixed annuities have risen a great deal in popularity. One reason for this is because they can provide safety from market volatility, as well as an ongoing, guaranteed income for life.
Due to the growing interest in annuities, the number of financial advisors who offer them has also significantly risen. This, however, is not necessarily a positive thing, because even though financial advisors will typically do what is best for their clients, they may not always give you the more detailed information that you require in order to make a well-informed annuity purchasing decision.
Plus, due to the rising interest in annuity products now, the list of annuities that have become available has also grown. But, even though having more options to choose from – as well as options on the annuities themselves – can be helpful, it can also make annuities that much more confusing – even for well-educated consumers.
With this in mind, you really need to take the additional steps that are needed to understand in full what you are buying before you make a commitment on a fixed annuity. This is particularly the case because you could be required to use a substantial portion of your overall retirement savings in order to purchase one. And, if you do happen to determine later that the annuity is not right for you – or that there is a better option available to you – it can be extremely expensive to get out of an annuity due to the surrender charges.
Annuity and Retirement Income Planning Information that You Can Trust
If you have not been to our website before, then we would like to personally welcome you here to AnnuityGator.com. We make up a team of experienced financial professionals that are focused on offering you in-depth and unbiased annuity reviews.
We have been offering these reviews online for many years – much longer than our competitors – and because of that, we have become a well-known and trusted source.
If you have been looking for annuity information online, it is likely that you may have come across a number of conflicting details. This, however, is not at all surprising, as there is a lot of information out there.
It is also possible that you recently attended a workshop or a seminar on annuities. During this event, the presenter may have offered you lunch or dinner, in return for providing you with details about a particular annuity that could be good for you. This may even be the catalyst that has brought you to our website today, in search of additional details.
There is actually a myriad of sites out in the world wide web that are focused on marketing annuities – and some of these will attempt to lure in visitors by making claims like:
- Lowest annuity fees
- Highest income payouts
- Guaranteed lifetime income
- Top Rated Annuity Companies
But, even though these claims may initially sound very enticing, it is essential that you verify that they are all true before you move forward with the purchase of an annuity – just as you would do before making any type of big-ticket purchase. This can be particularly crucial because, with an annuity, you may be using a large percentage of your hard earned savings.
So, if you truly want to know more about the Jackson National Life BonusMAX One annuity without having to wade through a plethora of fine print, then you are definitely in the right place. In fact, we dare say that our website is the only place where you can discover all of the key details about this annuity – which includes both the good and the bad. All of this information is essential for you to know, though, because it can help you with making the determination as to whether or not this annuity will be the best option for you.
Usually, when insurance sales people present fixed annuities, they will draw you a nice and rosy picture of how these products offer principal protection, as well as a future guaranteed income stream. However, in doing this, they may also tend to leave out certain details on the product’s potential drawbacks. This can make a big difference, though, in how the product performs – and how it may perform for you. Therefore, before you move forward and plunk a sizeable chunk of your savings into one of these products, be sure that you know the whole story.
In order to be perfectly clear here, we want to note that fixed annuities can offer several advantages – provided that they also fit in with your overall financial goals and needs. So, given that, you need to know what you will get with this annuity, as well as why you may be choosing it over a long list of other possible options.
This annuity review is here to assist you in understanding all of the details about the Jackson National Life Insurance Company’s BonusMAX annuity – and to help you decide whether it is the one for you.
So, if you are ready to dive in, let’s go!
Jackson National Life BonusMAX Annuity
|Product Name||BonusMAX One|
|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 One Annuity
Jackson National Life Insurance Company has been in the business of offering wealth creation and protection solutions ever since 1961. Even though the company began as a small family-owned business, over time Jackson National Life has grown into a multi-billion dollar organization.
Today, Jackson National is considered to be the second largest seller of annuities in the U.S. by LIMRA, the 8th largest U.S. life insurance company as ranked by total statutory assets, as well as the 16th largest U.S. life insurance company ranked by general account assets per SNL Financial.
Due to its strong and stable financial foundation, the company has earned high ratings from the major insurer rating agencies, including:
- 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.
Due in large part to the stock market’s volatility over the past decade or so, the demand for fixed annuities has grown a great deal, generally as a way for retirees and/or those who are nearing retirement to keep their assets safe.
However, because of the historically low-interest rates that the country has seen over the past several years, the return that you can get with a fixed annuity today is exceptionally low. In fact, generally, the return on a fixed annuity at the moment won’t even get you close to meeting or beating inflation – which could severely affect your long-term purchasing power in retirement.
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, contact us in order to obtain our free annuity report.
How Jackson National Life Insurance Company Describes the MAX One Fixed Annuity
According to the Jackson National Life Insurance Company brochure on the BonusMAX One annuity, this product is a flexible premium deferred fixed annuity that can provide you with the following benefits:
- Preservation of principal
- Competitive interest rates
- Your choice of interest rate guarantee periods
- Tax-deferred interest accumulation
- Options for guaranteed retirement income – including income for life
In taking a closer look at this annuity, the BonuxMAX One helps to preserve and to grow your savings in three primary ways. These include:
- First Year Bonus – The BonusMAX One annuity offers a first-year interest rate bonus in order to help with boosting your annuity’s accumulated value over time.
- Competitive Interest Rates – With the BonusMAX One, you may elect to have your initial interest rate, excluding the first year bonus, guaranteed for 1, 3, or 5 years.
- Tax Advantages – In this annuity, the interest in the account will accumulate free of current taxes, until you go to withdraw it.
There are other key features, too, that come with the Jackson National Life BonusMAX One annuity, such as the:
- Extended Care Benefit – If you – or the joint owner of the annuity – are confined to a nursing home due to medical necessity, or to the hospital, for 90 consecutive days, then you may be able to withdraw up to 100% of the accumulated contract value 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 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 One Annuity
Because the BonusMAX One is a deferred fixed annuity, it provides you with the protection of your principal over time, as well as a set amount of income – including a lifetime income option – in retirement.
If an insurance agent or other financial sales person has approached you about the BonusMAX One annuity, it is probable that he or she has focused primarily on the positive features of this product – but they may have left out some of the attributes that are considered to be drawbacks on the product.
As an educated consumer, you may even have noticed that financial and insurance companies will do a great job of ensuring that their products sound very enticing. For instance, by reading the above list of benefits on the Jackson National Life BonusMAX One annuity, you very well could have thought that this would be an ideal product for you.
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.
When taking a deeper dive into the “fine print” regarding this annuity, it may actually tell a differing story. For example, by reading over some of the footnotes in the product brochure, you will find the following more in-depth details:
- First Year Bonus – When reading the small print regarding the 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 – With regard to the annuity’s competitive interest rates, 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 – There may even be an issue with the tax related advantages that discussed in the product literature. This is because there are some states in the U.S. that will impose premium taxes – so be sure that you are aware of where your state stands here.
Also, with regard to the product’s terminal illness and extended care benefits, the amount that you can access will actually be limited to an aggregate of $250,000. Knowing this can show you that while these features are presented in a nice light, they also come with some limitations.
And, while the safety of your principal and guaranteed lifetime income in the future are certainly important, the truth is that you can find these features on any other fixed annuity too. And, if you can do that, along with the added benefit of the potential for a higher return, then it could very well be worth it to look more closely at some of the other options that are available.
The bottom line here, then, is that even though the Jackson National Life BonusMAX One annuity can offer some nice benefits after you have locked up a sizeable sum of your hard earned savings in it, it may be too late for you to change your mind if a better option were to come along.
So, if you are still not 100 percent convinced that the BonusMAX One annuity from Jackson National is right for you – and/or if you would like to obtain answers to any other questions that you may now have – then please feel free to reach out to us through our secure contact form here.
We understand how difficult it can sometimes be when trying to decide whether or not a certain financial product is right for you. But, knowing what you need to look for in an annuity is essential, as these products can require you to deposit a substantial portion of your overall retirement savings. If you would like to gain some additional insights regarding annuities and how they work, then just simply click here now in order to download our free report on what you need to know before purchasing an annuity.
What About the Fees on the Jackson National Life BonusMAX One Annuity?
On top of knowing how your money may perform in an annuity, it is also advantageous for you to get a good grasp on how – and how much – in fees that you may be charged for a given annuity product. Annuities can, and often do, charge fees – and these can occur during the product’s savings, or “accumulation”, period, as well as during the time that you are withdrawing your income down the road.
These fees can often times really add up, too, which can have a real impact on the amount of money that you are able to save in the annuity, and ultimately on the amount of income that you will receive in the future.
Some of the charges and fees that you will commonly find with a fixed annuity include a sales charge that goes to the person who sold the product to you, as well as certain contract and/or administrative fees. Plus, if you need or want to withdraw more than 10 percent of the annuity’s contract value in any given year during its “surrender period,” you will incur a surrender charge.
With the Jackson National Life Insurance Company’s BonusMAX One annuity, the surrender charges will last for nine years – which is a fairly long time, even in comparison to many other annuities in the marketplace. 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 One Annuity
Where it works best:
The Jackson National BonusMAX One annuity may work the best for those who are looking for the following features:
- Safety of principal
- Guaranteed lifetime income in retirement
- Guaranteed rate protection – at least for a short period of time after purchasing the annuity
- Initial bonus to help boost accumulation
Where it works the worst:
This annuity may not be a very good fit for you if you:
- Want access to most or all of your funds within the first several years (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
- In order to truly know how to compare the best annuity options for you, click here so that you can download our free annuity report.
There is a wide range of factors that you need to consider before you purchase an annuity. Today, there are nearly an endless selection of these products in the market – and you need to know which one, if any, will be right for you.
Overall, though, an annuity should always be considered to be a long-term financial endeavor – and because of that, it is essential that you feel right about how it will work to get your closer to your financial goals and needs. If you are thinking about going with a fixed annuity, you can be assured that your principal will remain safe and that you will receive a set amount of income in the future.
So, in the case of the Jackson National Life Insurance Company’s BonusMAX One product, there are some nice benefits to be had. However, this particular product can also fall somewhat short. And quite frankly, there could be some better alternatives out there for you. This is particularly the case if you are seeking lifetime income and safety of principal, along with the ability to obtain a higher return.
If it happens to be that you still have any more questions with regard to the BonusMAX One annuity, and/or if you would like some additional guidance in determining whether or not this annuity will be right for you, then please feel free to contact us directly via our secure contact form here.
Have Any More Questions on the Jackson National Life Insurance BonusMAX One Annuity? Did You Notice Any Mistakes?
We realize that this annuity review was fairly lengthy – so we thank you for sticking with us through it all. However, our thought is that we would much rather provide you with a bit “too much” information, than not enough. With that in mind, if you did find this review to be beneficial, please feel free to share it with other people who you believe also gain from it, as well.
Also, we know that, just like with most other financial products, details on annuities can – and often will – change. Therefore, if you did happen to notice any mistakes or information that needs updating, please let us know that, too, and we will get busy revising it as soon as possible.
If this review caused you to be more confused about how annuities work – or about how the Jackson National Life BonusMAX One annuity works – let us know that, too, as it will help us with future annuity reviews.
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