ANNUITY REVIEWS DATABASE

Independent Review of the Jackson National MarketProtector Advisory 5-Year Annuity

What will you learn about in this annuity review?

In this review, we will be going over the following information about the Jackson National MarketProtector Advisory 5-Year Annuity:

  • Annuity type
  • How the annuity works
    Jackson National Life Market Protector 10 Year
  • How an advisor might “pitch” this annuity to you
  • Benefits and drawbacks
  • Fees
  • Where this annuity may or may not work very well

Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.

For more than 50 years, Jackson National has been in the business of helping individuals, couples, and families grow and protect wealth. As one of America’s top annuity providers, Jackson has a focus on educating people about how annuities work, and how they may – or may not – be right for everyone.

The company ended the 2019 year with more than $22 billion in total sales and deposits, with fixed indexed annuities making up approximately $3.8 billion of that, and fixed annuities coming in with an additional $1.2 billion. In total, Jackson held nearly $298 billion in total IFRS assets.

Jackson National has accumulated some nice achievements, too, particularly in the life insurance and annuity arena, including the ranking of the:

  •  #1 seller of annuities in the U.S. during 2019
  •  #1 ranking in variable annuity sales in the U.S. during 2019
  •  #12 largest seller of fixed-rate deferred annuities in the U.S. during 2019
  •  #7 largest seller of fixed indexed annuities in the U.S. during 2019

The company also holds a high ranking position in terms of asset rankings, being the:

  •  7th largest U.S. life insurance company (as ranked by total statutory assets).
  •  15th largest U.S. life insurance company (as ranked by general account assets).
  •  21st largest U.S. life insurance company (as ranked by statutory surplus plus asset valuation reserve and interest maintenance reserve).

Given that fixed indexed annuities have become a financial solution of choice for many retirees and those who are approaching retirement, many insurance carriers have been adding to their index annuity product lineup. This, however, may or may not be an advantage because sometimes having “too many” choices can make things even more confusing.

A fixed indexed annuity is oftentimes touted as the “best of all worlds,” because they allow their owners a way to secure a positive return in good times, and to hang on to their principal value during market downturns.

But it is essential to know all of the in-depth details about a fixed indexed annuity you are considering before you move ahead with depositing a large chunk of your money into one – as it can be difficult, and costly, for you to get out if you later realize that it really isn’t the best option for you.

You can access our annuity buyers guide HERE for more information on how fixed index annuities work, and to help you determine whether or not this type of annuity would be right for you and your specific objectives.

How Jackson National Describes the MarketProtector Advisory 5-Year Annuity

In early 2018, Jackson National Life Insurance company launched two new fixed annuities with index-linked growth. These were the MarketProtector and the MarketProtector Advisory. Each of these come in a 5-year and a 7-year option.

They both also offer some similar key features, such as:

  • Indexes – These annuities track the S&P 500 and the MSCI EAFE, which are two broad-based indices that allow consumers to grow their interest. These 100% equity indexes can be independently tracked, and they have historical data available to illustrate past performance. (Although, past performance is never an indicator of future results).
  • Credit Methodologies – The income that is received from the MarketProtector annuities from Jackson National can increase by allocating index gains via two crediting methods – annual reset point to point performance trigger, and annual reset point to point. Both of these options can help investors earn interest in a variety of market conditions.
  • Indexed Option Periods – There is no withdrawal charge for the MarketProtector Advisory annuity. (With this annuity, however, advisor compensation is fee-based).
  • IncomeAccelerator – IncomeAccelerator is an optional add-on benefit that offers the ability to obtain a protected lifetime income stream. This added benefit is available for an additional charge to investors who are between the ages of 50 and 80 at the time of purchase.

For the full annuity review of the Jackson National Life MarketProtector 5-year Annuity, go HERE.

To see the full annuity review of the Jackson National Life MarketProtector 7-year Annuity, go HERE

Jackson National also offers a MarketProtector 10-year Annuity. You can access that review HERE.

Is the Jackson National MarketProtector Advisory 5 Annuity Right for You?

While there are many factors that need to be taken into consideration when you are buying an annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do.

With regard to the MarketProtector Advisory 5 fixed index annuity from Jackson National Life Insurance Company, you can rest assured that you will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall a bit short – and there quite frankly could very well be something else out there that is a better fit for you.

If you have any additional questions on this, or other income-related products, we are here to help. We can also run side by side annuity comparisons in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.

This is an independent product review, not a recommendation to buy or sell an annuity. Jackson National has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This review is meant to be an independent review at the request of readers so that they may see our perspective when breaking down the positives and negatives of this particular annuity. Prior to purchasing any type of investment or insurance product, it is important that you do your own due diligence and that you consult a properly licensed professional if you should have any specific questions that relate to your individual circumstances. All names, marks, and materials that were used for this review are the property of their respective owners.

How Jackson National Describes the MarketProtector Advisory 5 Annuity

Jackson National does a great job of providing numerous resources regarding their annuities. In fact, you can find a lot of updated rate and index information, as well as more in-depth information on how the return on this annuity may be credited, based on your personal choices.

But in a nutshell, the MarketProtector from Jackson is described as a fixed indexed annuity that allows you to combine the advantages of a traditional fixed annuity – such as safety – with the potential for additional interest, which is linked to the return of a chosen index (or even more than one index). In the case of the MarketProtector annuity, you can allocate funds to the S&P 500 index and/or the MSCI EAFE index.

You can choose an indexed option for five years. (Although Jackson National also offers the MarketProtector 7 and 10, in which the indexed period corresponds with your choice of either seven or ten years).

It is important to note, though, that the longer your indexed period is, the longer the surrender charge will also be – meaning that you could be penalized with a surrender charge if you withdraw more than 10% of the contract’s value within that given time period. So just keep in mind that if you get a little more, you also have to give a little more!

There are actually three different crediting methods that you can choose from with the Jackson National MarketProtector Advisory 5-Year annuity. These include:

  •  Annual Reset Point to Point Cap
  •  Annual Reset Point to Point Participation Rate with Spread
  •  Annual Reset Point to Point Performance Trigger

In all of these cases, there are some definite pros and cons, depending on what exactly it is you want the annuity to do for you. In general, here are some guidelines provided by Jackson National with regard to the MarketProtector annuity’s crediting methods:

Crediting MethodAnnual Reset Point to Point CapAnnual Reset Point to Point Participation Rate with SpreadAnnual Reset Point to Point Performance Trigger
Ideal Market EnvironmentRisingBullFlat
How It WorksReceive the percentage increase in an index up to the annual capReceive the partial percentage of an index minus an annual spreadReceive the crediting rate with a flat or positive return in an index
Contract Value ProtectionYesYesYes

In any case, though, just be aware that there is some give and take with any of the annuity crediting methods. So, you could consider the “drawbacks” to be tradeoffs for the various advantages you want to attain.

You can find more info on the Jackson National MarketProtector annuity’s crediting methods by going HERE.

Certainly, one of the other reasons people purchase annuities is to lock in an income in retirement. This is possible to do for a certain number of years, or even for the remainder of your life (and another person’s life, if applicable), regardless of how long it is needed. This alone can remove a great deal of stress in retirement.

There is an add-on income rider available (for an additional cost). The IncomeAccelerator provides guaranteed income every year for the rest of your life. It also offers several ways for you to grow your income, including options that let you decide how much you would like to bring in.

For instance, you can set your income baseline by deciding when to sign up for IncomeAcceletator. This establishes your starting Lifetime Annual Income Payment, or LAIP percentage. This is then the percentage of the annuity contract value that you can withdraw when you are ready to take income.

The age at which you elect the IncomeAccelerator will also determine your “Annual Deferral Credit” percentage. These credits represent additional amounts that combine with the LAIP percentage each year that you defer income payments. Once you have started taking your Lifetime Annual Income Payment, you also have the potential for annual “step-ups,” which will automatically lock in gains for the lifetime of the annuity contract.

To see the IncomeAccelerator brochure in its entirety, you can go HERE.

There are a few more “bells and whistles” that can be found on the MarketProtector Advisory 5 annuity from Jackson National, including a(n):

  •  Extended Care Waiver
  •  Terminal Illness Waiver
  •  Death Benefit

For instance, with the extended care waiver, if you (or your joint owner, if applicable) are confined to a nursing home or a hospital for a medically necessary purpose for 90 or more consecutive days, then you may withdraw up to 100% of the annuity’s account value without incurring a surrender charge (even if the annuity is still in the surrender charge period).

Note, though, that this is just a one-time withdrawal, so if you choose this option down the road, just know that you won’t be able to take any additional withdrawals from the annuity without incurring a penalty.

With regard to the terminal illness waiver, if you become diagnosed with a medical condition that is expected to result in death within 12 months, you may withdraw up to 100% of the contract’s value without penalty. However, similar to the extended care waiver, your terminal illness withdrawal is also just a one-time deal.

Nobody wants to lose money. So, if you pass away before you’ve received income from the Jackson National MarketProtector Advisory 5 annuity, your loved ones can receive a lifetime income check that can help them to fare better financially in case of the unexpected.

There is oftentimes confusion over which annuity benefits can kick in when. But seeing your options laid out similar to a scorecard can help. With that in mind, you can view the Jackson National MarketProtector consumer brochure HERE.

It can also be helpful to get any additional questions answered, as well as to determine whether or not an annuity might be right for you, by talking to a third-party objective annuity specialist. So, feel free to contact us either by phone or online and set up a time to chat.

We can also provide side-by-side annuity comparisons for you – right on the spot – so you can see the difference between an annuity you’re considering, or even an annuity you’ve already purchased – up against other possibilities.

How a Financial Advisor Might Present the MarketProtector Advisory Annuity to You

Fixed indexed annuities like the MarketProtector Advisory 5 from Jackson National can provide a nice list of benefits. But they can also contain a great deal of “moving parts,” as well as fine print that can oftentimes lead to even more confusion. This is true for both consumers and some financial professionals.

Typically, even though insurance and financial advisors truly want to help their clients, they will gloss over some pertinent information – either because they don’t fully understand how the product works (and are afraid that they’ll be asked a question that they can’t answer) – or because they want you to see the nice rosy picture without all of the corresponding thorns.

If you’ve been presented the Jackson National MarketProtector Advisory 5 annuity by your current advisor, or through one that you met at an educational lunch or dinner seminar – it is probable that he or she pointed out the fact that you can maintain protection of your principal in any type of market. (This alone could be enticing after suffering large market losses during the 2008 recession and/or the 2020 Coronavirus pandemic).

You also have the opportunity for market-linked growth. But, depending on the crediting strategy you choose, this annuity may use an annual index rate cap, which is another way of saying that there is a maximum amount of return you can earn each year – even if the underlying index(es) have a stellar performance.

There may also be limited return due to the use of a participation rate. In this case, if the annuity has a participation rate of 80%, your account will only be credited with 80% of what the underlying index returned for a given time period. So, in this instance, if the tracked index returns 6% in a given period, an 80% participation rate would only provide you with a 4.8% return on your account. (80% of 6% = 4.8%).

The advisor may also have highlighted the fact that you can count on an income stream for life. And this, too, could have peaked your attention, because running out of money in retirement is a fear that is high on all retirees’ lists these days.

With that in mind, the guaranteed income concept of the MarketProtector annuity is another area where an insurance or financial advisor might focus when presenting this annuity to clients or prospects.

But here again, an advisor who is being paid via a commission for selling you an annuity may or may not take the time to show you examples of how it could work (so that you know what to anticipate going forward). They may also not have the ability to show you a comparison of how an annuity like the Jackson National MarketProtector fares against other annuities.

But Annuity Gator can!

To check out the Jackson National MarketProtector consumer brochure, go HERE.

What About Fees on the Jackson National MarketProtector Advisory 5 Annuity?

Fees with any type of investment can drag down your overall return. The same holds true with annuities. In the case of the MarketProtector Advisory 5 annuity from Jackson National, there are a few areas you need to be mindful of.

For instance, adding the IncomeAccelerator income benefit can cost you an annual charge of 1.25%. If you and another individual are both covered by the rider, the annual charge jumps to 1.40%.

There are also surrender charges that could be incurred if you access more than 10% of your annuity contract balance within the first five years of owning it. (If you choose the MarketProtector 7 or 10 annuity, the surrender charge period can differ).

Jackson National MarketProtector Annuity Surrender Charge Schedule

Completed Years012345678910+
5-Year Option9%8.25%7.25%6.5%5.5%0%0%0%0%0%0%
7-Year Option9%8.25%7.25%6.5%5.5%4.5%3.75%0%0%0%0%
10-Year option*9%8.25%7.25%6.5%5.5%4.5%
3.75%2.75%1.75%.75%0%

There Annuity Gator’s End Take on the Jackson National MarketProtector Advisory 5 Annuity

Where this annuity might fit the best:

Although this indexed annuity offers many nice benefits, it will typically work the best for those who are seeking the following attributes:

  •  Safety of principal
  •  Tax-deferred growth
  •  The opportunity for additional, index-linked growth, which can provide a higher return than a regular fixed annuity
  •  Guaranteed income for life

Who may not necessarily benefit from owning this annuity:

Conversely, there are some areas where this particular annuity may not be the best option. That may be for people who:

  •  Will need access to their funds within the annuity’s surrender charge period
  •  Do not intend to use the lifetime income feature

If you are still considering the purchase of the MarketProtector Advisory 5 annuity from Jackson National, but you’re currently on the proverbial fence regarding whether or not it will be right for you, we can help you to “test” it, based on your specific scenario, at no cost or obligation.

Just let us know if this is something that you are interested in doing, and we’ll get on the case right away!

In Summary

While there are many factors that need to be taken into consideration when you are buying an annuity, one of the biggest concerns is making sure that the annuity is truly right for what you want – and need – it to do.

With regard to the MarketProtector fixed index annuity from Jackson National Life Insurance Company, you can rest assured that you will have an income for life. But at the same time, depending on your other goals and needs, this product may still fall a bit short – and there quite frankly could very well be something else out there that is a better fit for you.

If you have any additional questions on this, or other income-related products, we are here to help. We can also run side by side annuity comparisons in order to determine how various annuities might perform. So please feel free to contact us directly via our secure online contact form here.

Do You Have Any Additional Questions About this Annuity? Did You Happen to Notice Any Mistakes on this Annuity Review?

We realize that this annuity review may have run a bit long. But quite frankly, we would much rather that you have “too much” information on this annuity than to not have enough. So, if you found this annuity review to be beneficial, please feel free to pass it on and to share it with other people who could also find value in it. (And, if you found it to be confusing, please also let us know that, too.)

In addition, we are aware that information regarding annuities can, and often does, change. So, if you happened to notice anything in this review that should be updated or revised, let us know and we will be happy to make the necessary edits.

Are there any other annuities that you would like to learn more about?

If so, just give us a shout and let us know, and our team will get to working on them right away.

Best,

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:

Jackson National MarketProtector Advisory 5

 

 

 

 

 

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