Jackson Income Assurance℠ is a fixed index annuity (FIA) designed to provide growth potential, downside protection, and guaranteed lifetime income through an embedded living benefit.
The Market
First half of 2025, fixed index annuity sales reached $59.2 billion.1 Improved interest rates and product innovation around cap rates helped make these products more attractive to advisors and clients alike. FIAs remain a highly popular product for investors seeking market growth with complete principal protection and the option for guaranteed lifetime income. As more investors seek ways to combat market uncertainty, FIA popularity is only expected to increase.
Why DPL Likes Jackson Income Assurance℠
Like all FIAs, Jackson Income Assurance℠ provides tax-deferred growth potential with complete principal protection from market downturns. Funds are not directly invested in the market, but the variety of index and crediting method help advisors and clients take advantage of any market cycle.
Income Assurance℠ offers an embedded guaranteed minimum withdrawal benefit (GMWB) that sets it apart from other FIAs. This benefit provides regular income payments for life, no matter how the market performs or how long the client lives. The starting guaranteed annual withdrawal amount percentage (GAWA%) is determined by issue age, and generally grows each year income is not taken.
How to Think About Commission-Free FIAs
One advantage of utilizing FIAs is to leverage the scale of insurance carriers to deliver strong pricing in a packaged product, making it comparatively easy to implement, while also getting guaranteed downside market protection from the carrier.
When your client needs:
PRINCIPAL PROTECTION: With the principal protection from market risk provided by FIAs, they should be considered for clients nearing or in retirement to help mitigate sequence of returns risk.
FIXED INCOME: FIAs can be viewed as a fixed income replacement as client portfolios are de-risked from equities. They provide sequence of returns protection for those entering or in retirement, with an overall return above 6%, based on historic averages.2
GUARANTEED LIFETIME INCOME: FIAs can be used to generate guaranteed lifetime income with allocation flexibility and liquidity.3
1 LIMRA
2 Fixed Indexed Annuities as a Fixed Income Alternative for Near-Retirees, Wade Pfau
3 FIAs may be subject to surrender charges, market value adjustment, and taxation for early withdrawals
FINANCIAL PROFESSIONAL USE ONLY - NOT FOR USE WITH CONSUMERS
Fixed indexed annuities are contracts purchased from a life insurance company that are designed for long-term retirement goals.
While the interest rate credited to an indexed account is linked to the performance of an underlying index, premium payments made to a fixed index annuity are never directly invested in the stock market.
All guarantees are based on the financial strength and claims-paying ability of the issuing insurance company.
The purchase of an annuity within a retirement plan that already provides tax deferral under sections of the Internal Revenue Code results in no additional tax benefits. An annuity should be used to fund a qualified plan based upon the annuity’s features other than tax deferral. All annuity features, risks, limitations, and costs should be considered prior to recommending the purchase of an annuity within a tax-qualified retirement plan.