Jackson National Life Insurance Company (Jackson) has recently announced the launch of Jackson Market Link Pro 4 (JMLP4) and Jackson Market Link Pro Advisory 4 (JMLPA4), further strengthening its Registered Index-Linked Annuity (RILA) product lineup. These new offerings mark an industry first by introducing the Dow Jones Industrial Average as a crediting index option within the RILA space, while also providing flexible premium payment features and a six-year rate lock guarantee.
As the principal operating subsidiary of Jackson Financial Inc. (NYSE: JXN), the newly launched JMLP4 (commission-based) and JMLPA4 (fee-based) products are designed to help clients grow their assets both before and during retirement. They offer varying levels of downside market protection, including an option for full principal protection.
Alison Reed, Executive Vice President of Jackson Distribution, stated: "By being the first in the RILA industry to offer the Dow Jones Industrial Average as a crediting option, providing clients the ability to add money to existing contracts, and guaranteeing a cap rate for the first six premium years, we are offering clients more investment strategy choices and confidence."
Key innovations of the JMLP4 and JMLPA4 include: the Dow Jones Index option (joining existing indices like the S&P 500, Russell 2000, and NASDAQ 100), flexible premium features (allowing clients to add money to existing contracts without reapplying), and a guaranteed cap rate crediting method (enabling clients to lock in the cap rate for the first six premium years).
Additionally, the products offer full or partial performance lock features, allowing clients to lock in interim values at any point during the index account option period. These funds are then transferred to a performance lock holding account, earning interest at the declared rate until the next premium allocation anniversary. Clients can also opt for a step-up rate feature, which provides higher growth potential for an additional cost.
Jackson has also recently increased the guaranteed withdrawal rates for its traditional variable annuity products and emphasized its leading position in the RILA market. Analysts suggest that the inclusion of the Dow Jones Industrial Average as a RILA crediting option signifies an expansion of such products beyond traditional broad-market indices towards more iconic market benchmarks, which is likely to attract a broader range of risk-tolerant investors.