Built for low-cost tax deferral, Jackson's Elite Access Advisory II® can be a great resource for clients seeking an additional shelter for non-qualified assets.
The Market
Total U.S. annuity sales grew 26% year over year to $109.9 billion in the second quarter of 2024. With continued product innovation and the number of Americans turning 65, individuals are more interested in owning annuity products.1 Annuities are often purchased by investors to generate guaranteed lifetime income, but can provide additional benefits to potentially help increase retirement income, maximize tax-efficiency of assets, or ensure a legacy for loved ones.
Why DPL Likes Elite Access Advisory II®
Jackson’s Elite Access Advisory II has a unique cost structure that can be beneficial for clients mainly focused on accumulation. To further enable accumulation potential, the product has investment freedom — with more than 100 investment options — and an optional add-on guaranteed minimum accumulation benefit at 7 and 10-year terms which allows the portfolio to be tailored exactly to a client's specific risk tolerance. Jackson's Elite Access Advisory II can be a great resource for clients seeking additional tax-deferral for their non-qualified assets.
How to Think About Commission-Free VAs
When your client needs:
ANNUITY RESCUE+: For clients looking to move assets from their high-cost traditional annuity into a low-cost, Commission-Free product, a “1035 exchange” may be appropriate. Annuity Rescue+ may help clients achieve:
Low cost — if the goal is simply to achieve the lowest cost, DPL recommends using an investment-only variable annuity.
Guaranteed income — often clients purchase an annuity because they like the guaranteed income feature. Depending on your investment approach, DPL will find the product that is best suited for you and your client.
Tax-efficient withdrawal — if your client needs to begin taking income from an annuity, DPL can bring products and strategies to tax-efficiently withdraw funds.
Return of premium — utilizing a 1035 exchange into a solution with a return of premium benefit can be a thoughtful way of essentially “locking in gains,” as the amount of the new premium will include any gains from the previous annuity. DPL brings several very low-cost and innovative strategies.
TAX DEFERRED GROWTH: For high income earners, low-cost annuities can provide tax deferral during a client’s accumulation phase. With a tax-deferred savings or investment strategy, money that may otherwise go to pay current taxes remains invested in the portfolio for greater long-term growth potential.
GUARANTEED LIFETIME INCOME: While other product types are generally better options for guaranteed lifetime income, variable annuities can provide the greatest investment flexibility of the product types that offer this feature — potentially generating additional growth of the portfolio. It may be more appropriate to use a low-cost VA during the accumulation phase and then, when the client is ready to begin taking out guaranteed lifetime income, move into the best available income product or utilize an income rider.
Product information is provided by DPL. For more complete product information, please see www.jackson.com.
Product information sourced directly from: https://www.jackson.com
1LIMRA Second Quarter 2024 Annuity Sales
Variable annuities are contracts purchased from a life insurance company that are designed for long-term retirement goals and are subject to market risk, including loss of principal.
No investment strategy insures a profit or protects against losses in a down 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. In addition to surrender charges, withdrawals are subject to income tax.