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Independent Review of the Jackson National RateProtector Multi-Year Guaranteed Annuity

What will be covered in this annuity review?

In this annuity review, we will be going over the following details regarding the Jackson National RateProtector MYGA (Multi-Year Guarantee) Annuity:

  • Product typeIndependent Review of the Jackson National Life Perspectives ll / Lifeguard Freedom 7 Net Variable Annuity
  • Fees
  • Current rates
  • Realistic long-term return expectations
  • How this annuity is best 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.

Purchasing an annuity can be a major financial decision, as it can provide a way to fill in the income “gap” between your other retirement income and the expenses that you have. An annuity can also offer a way to ensure that you will have an ongoing income for the rest of your lifetime – regardless of how long you may need it.

Annuities can also allow you to increase your money on a tax-deferred basis – similar to an IRA or employer-sponsored retirement plan – yet without being subject to an annual maximum contribution.

So, it stands to reason that an annuity can cover several retirement planning and income bases – particularly if the annuity has some flexibility built in, such as the new single premium RateProtector multi-year guaranteed (MYGA) annuity from Jackson National.

Here you can have a rate guarantee period for three, five, or even seven years. There are also some added bells and whistles included in the Rate Protector annuity, like a terminal illness and extended care waivers, which let you access funds penalty-free in certain situations.

But, before you run out and purchase this – or any – annuity, it is important that you have a good understanding of exactly what to anticipate. Because sometimes, when something sounds “too good to be true” it usually is!

This is where the Annuity Gator can come in!

Annuity and Retirement Income Planning Information You Can Trust

If this the first time you have visited our website, please allow us to personally welcome you here. At Annuity Gator, we are a team of experienced annuity experts who focus on providing comprehensive yet unbiased annuity reviews online.

We’ve been at this for quite some time now, and far longer than our competitors – even though they would like you to believe otherwise. Because of this, we have come to be known as a trusted source of annuity information online. Over the past several years or so, however, many “copycat” websites have started to pop up on the Internet. So, while that can be somewhat confusing for consumers, we take it as somewhat of a compliment. After all, imitation is the highest form of flattery!

If you have been searching for more annuity information via the Internet, it is likely that you’ve come across a lot of conflicting details about these financial tools. This, however, is not surprising, because there are many different thoughts and opinions about these products – some good, and some not really good.

If you’d like to learn more about the Jackson National RateProtector MYGA annuity, though, you are in the right place. In fact, dare we say that this website is the only place online where you can see all of the key details that you need for making a well-informed decision. This is the case for the RateProtector or any other annuity that you may be considering.

Before diving in, though, we do want to state for the record that – even though we will point out both the pros and the cons of the RateProtector, overall we believe that annuities can be a key component in your retirement portfolio. That being said, though, while the right annuity can be beneficial, the wrong one can be quite costly.

So, if you’re ready to get started, let’s go!

Jackson National RateProtector MYGA Annuity at a Glance

Product NameRateProtector
IssuerJackson National
Type of ProductMulti-Year Guaranteed Annuity (MYGA)
S&P RatingAA-
Phone Number(877) 565-2968
Websitewww.jackson.com

Opening Thoughts on the Jackson National RateProtector MYGA Annuity

Jackson National Life Insurance Company has been in operation since 1961. Since its inception, this company – which began as a family-owned entity in Lansing, Michigan – has grown into a multi-billion dollar insurance carrier.

Just some of this insurer’s accolades for year-end 2018 include:

  • #1 seller of annuities in the U.S.
  • Ranked #1 in variable annuity sales in the U.S.
  • 16th largest seller of fixed-rate deferred annuities in the U.S.
  • 26th largest seller of fixed index annuities in the U.S.
  • 8th largest U.S. life insurance company ranked by total statutory assets
  • 16th largest U.S. life insurance company ranked by general account assets
  • 22nd largest U.S. life insurance company ranked by statutory surplus plus asset valuation reserve and interest maintenance reserve

You can check it out for yourself HERE.

The need for fixed/MYGA annuities – which are always backed by life insurance carriers – has been growing fairly steadily throughout the past few years, particularly as more of today’s workers are retiring without having the stability of a traditional “defined benefit” pension for future retirement income. But, by choosing the lifetime income stream on an annuity, you can essentially “replace” a defined benefit pension plan.

If you have a “defined contribution” retirement plan, such as a 401(K), then upon retirement, you will need to have an idea of what you want to do with the money you’ve saved in it – as well as a way to convert those dollars over into a stable and reliable income stream (ideally that will last for the remainder of your life – regardless of how long that may be).

One possibility would be a fixed or MYGA (Multi-Year Guaranteed) annuity. This is because these financial vehicles can provide you with a set return and safety of your principal (regardless of what happens in the stock market), as well as with a lifetime income that you can count on.

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 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 out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment 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 situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners.

For more information on how to compare annuities, and how to determine which one – if any – may be the best for you, click here to obtain our free annuity report.

How Jackson National Describes the RateProtector Multi-Year Guaranteed Annuity

Jackson National describes the RateProtector annuity as a multi-year fixed annuity that offers 3-, 5-, or 7-year interest rate guarantee options. This means that the interest rate you choose will be guaranteed until the end of the initial guaranteed option period. (Then, following the initial guaranteed option period, renewal interest rates will be guaranteed for one-year periods going forward).

There are a number of benefits that the RateProtector MYGA can provide, including:

  • Principal protection (no matter what occurs in the market)
  • Tax-deferred interest accumulation
  • A method for leaving a legacy for those you care about

During the “accumulation” period, the RateProtector annuity from Jackson National can help you to grow and protect your funds in two ways – including the offer of guaranteed interest rates, and via tax-advantaged growth.

This annuity also offers the options to access up to 100% of the contract’s value if you have been diagnosed with a terminal illness and/or if you are confined to a nursing home due to a medical necessity.

There is also a death benefit associated with this annuity whereby your entire accumulated contract value will be paid out to your named beneficiary (or beneficiaries).

To take a look at the Jackson National RateProtector Multi-Year Guaranteed Annuity, you can go HERE.

There are also additional product details that can be found on the Jackson National website. These can be accessed by going HERE.

How an Insurance or Financial Advisor Might “Pitch” this Annuity

If you are approaching retirement, it is possible that you are torn between going with financial vehicles that have more risk in order to increase your opportunity for growth, or instead, going with something “safer” so that you don’t lose any of your hard-earned principal in the event of a market “correction”.

With so many pre-retirees being concerned about not losing what they’ve already saved, having certain guarantees can be comforting – so if you have been presented the Jackson National RateProtector MYGA annuity, then the advisor you met with may have focused on the safety features that are affiliated with this product, along with the opportunity to earn a higher rate of return if your when rates rise in the future.
So, in many ways, this annuity can allow you to potentially increase the returns on your “safe money.”

Maybe…

There are a few “tradeoffs” that you need to be aware of, too, if you are leaning towards the RateProtector MYGA annuity from Jackson National. For instance, once the initial rate guarantee period has elapsed, the then-current rate will only be renewed from year to year.

And, since we have been in a historically low-interest rate period for quite some time now, you could end up locking up a large portion of your money for a long period of time (again) – which in turn means that you could be giving up the ability to take advantage of other financial opportunities that just might provide you with a better rate.

In addition, if you need to access funds from the annuity via the terminal illness waiver or the extended care waiver, there are a few hoops you may need to jump through, as well. For instance, the maximum amount that you can withdraw penalty-free (i.e., withdrawal charge free) for the terminal illness waiver is $250,000. And, the same holds true on the extended care waiver.

So, before you move forward with this annuity, make sure that you read over all of the “fine print,” so that there are no surprises if or when you need to get ahold of your money.

What About Any Fees on the Jackson National RateProtector MYGA Annuity

There are some fees that you could run in to with this annuity. First, if you access more than $250,000 for the terminal illness or the extended care waiver, you will have to pay a withdrawal charge.

In fact, if you take out more than 10% of the contract’s value during the “surrender period,” you will incur a fee. These fees run for a period of 3, 5, or 7 years, depending on the interest rate lock period you have chosen. (In other words, the surrender penalty will remain in place for the same amount of time as your interest rate guarantee).

Jackson National RateProtector MYGA Annuity Surrender Charges

Completed Year01234567+
3-year8%8%7%0%0%0%0%0%
5-year8%8%7%6%5%0%0%0%
7-year8%8%7%6%5%4%3%0%

In addition to being hit with a surrender penalty, if you make a withdrawal before you reach age 59 ½, you could also incur an additional 10% “early withdrawal” penalty from the IRS. So, given all of these possible penalties, you could end up netting out far less than you had hoped for if you need this money during the annuity’s surrender.

The Annuity Gator’s End Take on the Jackson National RateProtector Multi-Year Guaranteed Annuity

Where this annuity works best:

While this particular annuity may not be right for everyone, it could be a good option for those who are seeking the following:

  • Guaranteed growth (at least three years, five years, or seven years)
  • Protection of principal
  • Lifetime income in retirement

Where it works the worst:

This annuity may not be right for you if:

  • You want the opportunity to earn an even higher rate of return in order to keep better pace with future inflation
  • You want to access more than just 10% of the contract’s value each year during the surrender period
  • You do not plan to use the lifetime income feature

In Summary

If you’ve been considering how to position your savings so that you have a guaranteed income in retirement, there are several areas that you need to keep in mind. For instance, with an annuity, you really need to ensure that it provides you with the opportunity to earn a nice return – at least so that your money can meet or beat inflation – while at the same time keeping your funds safe in the event of a market downturn.

Likewise, if you are also looking for a future stream of guaranteed income in retirement, then you need to know how the annuity will pay out. With that in mind, if you are still leaning towards the RateProtector MYGA annuity from Jackson National, then you can rest assured that your money will be safe, no matter what goes on with the stock market, or even in the economy overall. You can also count on an ongoing income stream in the future, alleviating the concern about running out of money before you essentially “run out of time”.

However, while the Jackson National Rate Protector annuity can certainly offer you a wide range of nice features, the truth is that this product might still fall somewhat short, and quite honestly, there could be a better alternative out there for you. This is particularly the case if you have been looking for a way to keep your principal safe, yet still, have the opportunity to earn a higher amount of return.

In any case, the only way to really know how this (or any other) annuity may perform – based on your specific situation – is to have it tested. We can do this for you by running the numbers through our annuity calculator, and we can then provide you with a spreadsheet of the results. In order to receive this information, just simply contact us through our secure online form here and let us know.

Do You Have Any Additional Questions Regarding the RateProtector Annuity from Jackson National? Are There Any Other Annuities You Would Like Us to Review?

While we know that this annuity review was a tad bit on the longish side, we feel that providing “too much” information is much better than not enough. That being said, we appreciate you sticking with us through to the end.

We also realize that, because all investors’ situations can be quite different, there may have been some questions that went unanswered in this review. If this is the case and you still have any additional questions or concerns regarding the Jackson National RateProtector, please feel free to reach out to us HERE via our secure online contact form.

In addition, if you found this annuity review to be helpful, please forward it to anyone else that you feel might also benefit from it, as there is a lot of misconception out there about annuities and how they work.

Is there any other annuity you would like to see us review?

If so, we will get our team of annuity “geeks” right on it!

Best,

The Annuity Gator

P.S If you would like to read more of our Jackson National annuity reviews here are some links to check out:

Independent Review of the Jackson National RateProtector Multi-Year Guaranteed Annuity

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