Product alert: New life insurance, annuity offerings hit the shelves

Monday became a new product release day as three prominent life insurance companies unveiled their new offerings.

Jackson National Life Insurance Co. launched a pair of new fixed index annuities with an embedded guaranteed minimum withdrawal benefit. Jackson Income Assurance, a commission-based FIA, and Jackson Income Assurance Advisory, a fee-based FIA, each offer 7- and 10-year options, "giving consumers choices based on their individual needs and retirement timeline," the insurer announced in a news release.

Jackson announced several noteworthy product features with the Income Assurance products:

Embedded GMWB. The GMWB provides protected lifetime income with additional opportunities for GWB growth through deferral and step-ups. An 8% annual roll-up is credited daily (for a maximum of 10 years). Partial withdrawals during the deferral period can be made without sacrificing the roll-up as the GWB is proportionately reduced for withdrawals prior to the activation date. There is no deferral requirement to begin taking the guaranteed annual withdrawal amount.

GWB premium bonus: The 30% GWB premium bonus is immediately applied to the GWB on initial and additional premium received in the first year.

Multiple crediting methods based on S&P 500 Index returns.
Cap: Index return up to a stated cap rate if the index return is positive
Performance Trigger: Provides a stated performance trigger rate if the index return is flat or positive.

Free withdrawal amount. During the first contract year, 10% of initial and subsequent premiums paid may be taken free of withdrawal charges and market value adjustment. In subsequent years, 10% of the accumulation value determined at the beginning of the contract year may be taken free of withdrawal charges and MVA.

Advisory friendly. Taking the advisory fee from the contract does not negatively impact the living benefit in any way. Advisory fees do not result in a reduction of premium for the calculation of the death benefit, nor does it count toward the free withdrawal amount.

Entering the RILA market

Securian Financial entered the individual annuity market’s fastest-growing segment with the launch of AccumuLink Advance, a registered index-linked annuity.

Issued by Minnesota Life Insurance Co., a Securian subsidiary company, AccumuLink Advance "gives financial professionals a new, competitive choice for building retirement portfolios through a combination of downside protection and upside potential strategies," the company said in a news release.

“We are excited to enter the RILA market with a product we’re proud of and believe will be appealing to financial professionals and consumers alike,” said Andrea Piepho, Securian Financial second vice president of life and annuity product development. “Our RILA includes unique, competitive features that make it stand out from competitors.”

The new product is available in all states and the District of Columbia except North Carolina, New York and Oregon.

A term proposal

Prudential Financial joined the new-product parade with an expansion of its EssentialTerm Suite for policies of $250,000 face amount and above, "offering more consumers greater choice to match their individual needs and budgets," the insurer said in a news release.

Prudential’s EssentialTerm Suite features two enhanced term life solutions issued by Pruco Life Insurance Co. EssentialTerm Value is a "cost-effective option for consumers seeking temporary protection with the option to convert to a permanent policy as financial goals evolve," the release said. By converting to a permanent policy, consumers can benefit from lifelong coverage and additional benefits like cash-value growth.

EssentialTerm Plus offers a "more robust" conversion option for consumers who are focused on their long-term financial planning goals.

“At Prudential, we recognize the important role life insurance plays in safeguarding your life’s work, not only as death protection but for long-term planning,” said Rob Schaffer, Prudential’s head of product design and innovation, Individual Life Insurance. “The EssentialTerm Suite bridges short-term needs with opportunities for lasting value, empowering policyholders to convert to permanent life insurance as their lives evolve.”

Key features of the EssentialTerm Suite include:

Flexible term options. A choice of 10-, 15-, 20- or 30-year term durations, with guaranteed consistent premium payments throughout the selected term.

Conversion to permanent policies. The ability to convert to one of Prudential’s permanent life insurance policies, maintaining the same health underwriting classification. Additionally, a conversion credit is available within the first seven years to help reduce premiums during the transition.

Terminal illness rider. Automatically included, the rider allows access to a portion of the death benefit if the policyholder becomes terminally ill.

Optional riders. Customers can enhance the policy with additional riders, such as the waiver of premium in the event of disability, an accidental death benefit and convertible life insurance for a child.

The EssentialTerm Suite features "a quick and straightforward approval process," featuring online interviews that take approximately 20 minutes, the release said. It also qualifies for PruFast Track, Prudential’s accelerated underwriting process, which eliminates the need for medical exams and lab work. Additionally, applications can be tracked and managed through Prudential’s new Life Case Tracker.

This report compiled by InsuranceNewsNet staff.