Jackson Releases First Fee-Based FIA With No Surrender Charge
March 20, 2018 by Cyril Tuohy
Jackson National released the first fee-based fixed indexed annuity (FIA) that does not carry a surrender charge, the company announced Monday.
Surrender charges penalize contract holders for turning their contracts in early, a feature some analysts say is a stumbling block to penetrating the fee-based registered investment advisor market and boosting sales through broker-dealers.
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Article excerpt: “If that is the only hang-up, the Jackson National MarketProtector Advisory may be a game changer,” said annuity market analyst Sheryl J. Moore, president and CEO of Moore Market Intelligence and Wink Inc., publisher of Wink’s Sales & Market Report.
“Fee-based indexed annuity sales contracted for 0.42 percent of 4Q 2017 sales, but this could open that up in a big way,” she said.
Plenty of FIAs have been launched in the past without a surrender charge, but those have all been commission-based FIAs.
Horace Mann is the only other company that offers an FIA with no surrender charge and it is commission-based, Moore said.
MarketProtector Advisory is the first fee-based FIA with no surrender charge, she said.
