Fixed index annuities

What is a fixed index annuity?

Whether you’re looking for principal protection in down markets, the possibility of growing tax-deferred assets for retirement income, or planning on leaving a legacy, a fixed index annuity can help with these goals. While providing tax deferral, they also give you the opportunity to participate in a portion of the growth that may be realized by a market index such as the S&P 500 or MSCI EAFE. Your choice of index determines additional interest that may be credited to your account while maintaining the safety of your principal, as interest is credited based on the performance of an index without being directly invested in the market itself. One or more crediting methods also allow you to remain flexible when changes to your priorities arise. Picking from a number of different index option periods let you customize a plan based on your specific retirement timeline. Additionally, some add-on benefits* can provide guaranteed lifetime income.

What is a Fixed Index Annuity?

Fixed Index Annuities are long-term, tax-deferred vehicles designed for retirement, combining the advantages of a traditional fixed annuity with the potential for additional interest linked to the return of an index. Earnings are taxable as ordinary income when distributed. Individuals may be subject to a 10% additional tax for withdrawals before age 59½ unless an exception to the tax is met. Fixed index annuities are also referred to as fixed annuities with index-linked interest in the contract. Add-on living benefits are available for an extra charge and may be subject to conditions and limitations and there is no guarantee that an annuity with an add-on living benefit, will provide sufficient supplemental retirement income.

What fixed index annuities offer

Potential for asset growth and principal protection

Choose from a variety of crediting methods for growth potential, while still protecting your principal from volatile markets.

Create guaranteed income

An add-on living benefit may help protect your income and solve for the essentials in retirement.

Leave a lasting legacy

Take the opportunity to provide for your loved ones or a charity of your choice through a death benefit.

*Add-on benefits that provide income for the length of a designated life and/or lives may be available for an additional charge. The amount of income that these benefits may provide can vary depending on age, when income is taken, and how many lives are covered when the benefit is elected. The cost of these benefits may negatively impact the contract's cash value.

Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a legal entity such as a corporation or certain types of trusts.

Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York and do not apply to the principal amount or investment performance of a variable annuity’s separate account or its underlying investments. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York.

Before investing, investors should carefully consider the investment objectives, risks, charges, and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other important information. Please contact your financial professional or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.

This material on this website is prepared to support the promotion and marketing of Jackson annuities. Jackson, its distributors and their respective representatives do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used and cannot be used for the purpose of avoiding U.S. federal, state, or local tax penalties. Tax laws are complicated and subject to change.  Tax results may depend on each taxpayer’s individual set of facts and circumstances.  Clients should rely on their own independent advisors as to any tax, accounting, or legal statements made herein.

Fixed index annuities are issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and distributed by Jackson National Life Distributors LLC. Not available in all states and state variations may apply. Depending on the product, an additional premium may be permitted in the first contract year. These products are fixed annuities that do not participate in any stock or equity investments. Limitations and restrictions apply, including withdrawal charges, recapture charges, or market value adjustments (MVA) on some products. Recapture charges and MVA may not apply in all states. During the Indexed Option Period, the annuity's cash withdrawal value may be less than the initial premium. For costs and complete details, contact your representative or the Company.

All indexes are unmanaged and not available for direct investment. The payment of dividends is not reflected in the index return.

The design of these annuity contracts emphasizes the protection of credited interest rather than the maximization of interest rate crediting. Jackson issues other annuities with similar features, benefits, limitations, minimum Caps/Rates, and charges. Similar products with different features, limitations and with either higher or lower Caps/Rates may be available through other broker-dealers. Fixed annuities with index-linked interest may not be suitable for everyone. 

The latest maturity date or income date allowed under an annuity contract is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a variable annuity contract.

Annuities are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York, by Jackson National Life Insurance Company of New York (Home Office: Purchase, New York).  Annuities are distributed by Jackson National Life Distributors LLC, member FINRA. These contracts have limitations and restrictions. Jackson issues other annuities with similar features, benefits, limitations, and charges. Contact Jackson for more information.

Jackson® is the marketing name for Jackson National Life Insurance Company® and Jackson National Life Insurance Company of New York®