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Annuity Facts

Fixed Annuity Facts

If you want a reliable, steady income stream with the option to leave a legacy for your loved ones, a fixed annuity may suit your financial needs. Fixed annuities are tax-deferred* retirement vehicles issued by insurance companies that grow at a guaranteed rate and offer you the opportunity to turn some or all of your savings into guaranteed income payments for life, or for a set period.

Most fixed annuities have two phases: the accumulation phase, during which your investments have the potential to grow tax-deferred and the distribution phase (also known as annuitization), during which you receive income payments or a lump-sum payment. You also have the opportunity to leave a legacy that allows your assets to pass on to beneficiaries. Fixed annuities' benefits and features vary, so it's important to work with a financial professional to choose a fixed annuity that suits your individual objectives.

This material is intended for educational purposes and does not contain information about specific Jackson products.

*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 not be available if the annuity is owned by a "non-natural person" such as a corporation or certain types of trusts.


What is an Annuity? An annuity is a long-term, tax-deferred vehicle designed for retirement. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before
age 59½.

Fixed Growth

Fixed annuities earn a guaranteed rate of return over the life of the contract, and offer contract owners the predictability of a guaranteed income stream and a way to grow assets without exposure to market volatility.

Guarantees are backed by the claims-paying ability of the issuing insurance company.

Hypothetical phases of a fixed annuity infographic for deferred fixed annuities.

Interest Rate

Fixed annuity interest rates are set by the issuing company, based on the underlying investments it holds. Most issuing companies offer a guaranteed rate for a set period, usually for one or more contract years, and can adjust the renewal rate thereafter. Fixed annuities feature a guaranteed minimum interest rate.

Tax Advantages

During the accumulation phase of a fixed annuity contract, interest credited to your nonqualified contract is tax deferred. Fixed annuities have no contribution limits.

Benefits

Many fixed annuities offer optional benefits, which may include guaranteed lifetime income, the opportunity to make annual penalty-free withdrawals of a certain portion of the contract, an accelerated withdrawal benefit for certain health conditions, a terminal illness benefit, and an extended care benefit. Fixed annuities offer a standard death benefit of a lump sum payment or withdrawals under an income option of the full value of the contract at time of death.

Distributions

During the distribution phase of the contract, a fixed annuity can be converted into a series of income payments for your entire lifetime, over a set time period — or one lump-sum payment. If you begin taking withdrawal payments before age 59½, your withdrawals may be subject to additional taxes.

Fixed Annuities
Mountains

For a more conservative investing approach, consider a Jackson fixed annuity (FA).

Retirement Planning
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Whether you’re saving, retiring or ready to consider a legacy — Jackson can help.

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Partner with a professional to help pursue your long-term financial goals.

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 "non-natural person" such as a corporation or certain types of trusts.

Guarantees are backed by the issuing insurance company and do not apply to a variable annuity's separate account or its underlying investments.

Jackson and its affiliates do not provide legal, tax or estate-planning advice. For questions about a specific situation, please consult a qualified advisor.

Fixed 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). Subsequent premium may be restricted in some states. These products may not be available in all states and state variations may apply. These contracts have limitations and restrictions, including withdrawal charges and possible excess interest adjustments. 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®.

• Not FDIC/NCUA insured • Not bank/CU guaranteed • May lose value •
Not a deposit • Not insured by any federal agency

CMF16253 08/16

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Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951