Below are frequently asked questions about Elite Access® and Jackson®. Click on a subject heading below to view questions and answers relating to your selection. For any further questions, please consult your advisor, the Elite Access Prospectus (in New York, please use the New York Elite Access Prospectus), or visit the Contact Us page.
1. What is Elite Access?
2. How has market uncertainty changed the investment landscape?
3. How does Elite Access go "Beyond Traditional Asset Allocation"?
4. Why should I add alternatives to my portfolio?
5. Where can I find a quick overview of Elite Access features and benefits?
6. What should I ask my advisor about Elite Access?
Elite Access is a variable annuity investment platform with underlying investments that actively seek to find growth and limit risk amid changing market conditions. By combining the added diversification1 of alternative investments with the quick-response capabilities of risk management and tactically managed strategies, Elite Access helps you to stay invested no matter what the market is doing. In addition, Elite Access is a tax-deferred2 investment that allows you to tap into the skilled analysis and guidance of some of the industry´s most respected experts—an opportunity previously available only to the most elite investors. Unlock the Elite Access Story.
In the past, it made sense to invest traditionally, buying and holding a strategic selection of stocks and bonds. The theory being that the diversification between them would limit volatility within your portfolio over a long period of time. However, in the new global economy, markets are more unpredictable than ever and asset classes that previously provided diversification are now less diverse.
To find out more about volatility, watch this video.
Elite Access offers you entry into the world of alternative assets that are generally less correlated to stocks+ and provide a greater level of diversification. Elite Access can also go beyond traditional investing by employing Alternative Assets and Strategies as well as expertly guided Risk Management and Tactical Strategies designed to negotiate market swings, quickly moving your assets in and out of the market or between asset classes to minimize risk while seeking growth.
Continued market volatility requires us to look for new ways to manage portfolios. Alternative investments offer a way to further diversify the assets in a portfolio to help address volatility risk and have historically demonstrated a lower correlation to stocks. Jackson has offered alternative investments from some of the top money managers in the industry since 2005.
To learn how alternatives may help diversify your portfolio, click here.
Elite Access Offers:
More than 100 investment options, including:
Ages and Amounts
Fees and Charges:4
Annual Contract Maintenance Charge
Annual Fund Operating Expenses5
Talk with your advisor to see if Elite Access makes sense for you. Here are some questions you might ask your advisor:
Because of the complexities of investing, Elite Access is only offered through licensed financial advisors and is not sold directly to the public. Contact your financial advisor to learn more about how Elite Access can give you the confidence to invest during uncertain times.
|1||Diversification does not assure a profit or protect against loss in a declining market.|
|2||Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or IRA, and may be found at a lower cost in other investment products. It also may not be available if the annuity is owned by a “non-natural person” such as a corporation or certain types of trusts.|
|3||There may be periods when Jackson restricts the amount of premium payments into, and the amount and frequency of transfers between, into and from, any fixed account option; to close any fixed account option; and to require transfers from a fixed account option. If the transfer restriction is imposed, then transfers from the 1-Year Fixed Account in the first contract year may not exceed one-third of the value of the fixed account; if the maximum transfer amount has been transferred in the previous contract year, in the following contract year transfers may not exceed one-half of the value of the fixed account. If the maximum transfer amount has been transferred in both of the two prior contract years, the remaining value of the fixed account may be transferred the next contract year. Transfers may not begin until 12 months after the last transfer. If the restrictions are imposed, you may elect automatic rebalancing, but the 1-Year Fixed Account may not be included in the allocation. The interest rate credited to the fixed accounts is backed by the claims-paying ability of Jackson National Life Insurance Company® or Jackson National Life Insurance Company of New York®. Withdrawals from a fixed account prior to the end of the fixed period may be subject to withdrawal charges and excess interest adjustments (interest rate adjustments in New York), where applicable, which may reduce the contract value. The 1- and 3-Year Fixed Account options are currently not available.|
|4||Annual asset-based charges include a mortality and expense charge of 0.85% and an administration charge of 0.15% as an annual percentage of the average daily net asset value of the variable investment options, plus a $50 ($30 in New York) annual contract maintenance charge, waived for contract anniversary values and surrender values of $50,000 or more. (Administration charge is waived if the contract value on the later of the issue date or the most recent contract quarterly anniversary is greater than or equal to $1 million.)|
|5||The range is based on the estimated expenses reflected for each of the portfolios in the current prospectus and subsequent prospectus supplements. Please see the prospectus to determine the charge associated with a specific investment option.|
|6||Withdrawals that exceed the free withdrawal may be subject to withdrawal charges and excess interest adjustments (interest rate adjustments in New York), where applicable, which may reduce the contract value. Although free withdrawals reduce the contract value, they do not reduce remaining premium. As a result, you will not receive the benefit of a free withdrawal if you take a full withdrawal. (Not applicable in Washington.)|
|7||Withdrawal charges are expressed as a percentage of premium payments and are based on the number of completed years since each premium payment. Upon a full or partial withdrawal taken on or after age 88 of the owner, withdrawal charge percentages applied will be less than those in the normal duration of the schedule. (Not applicable in New York.)|
|8||The optional liquidity benefit is available for an extra charge in addition to the ongoing fees and expenses of the variable annuity. If the liquidity option is elected, the 1-, 3-, 5- and 7-Year Fixed Account options are not available. It is important to note that the charges for this optional benefit are charged for the life of the contract.|
Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of the variable annuity and its underlying investment options. The current contract prospectus and underlying fund prospectuses, which are contained in the same document, provide this and other information. Please contact your representative or the Company to obtain the prospectuses. Please read the prospectuses carefully before investing or sending money.
Diversification does not assure a profit or protect against loss in a declining market. Portfolios that have a greater percentage of alternatives may have greater risks, especially those including arbitrage, currency, leveraging, and commodities. This additional risk can offset the benefit of diversification.
Alternative investment strategies such as leveraging, arbitrage and commodities investing are subject to greater risks and volatility than more traditional investment offerings. Although asset allocation among different asset categories generally limits risk and exposure to any one category, the risk remains that management may favor an asset category that performs poorly relative to the other asset categories. The subaccounts expect to invest in positions that emphasize alternatives or nontraditional asset classes or investment strategies and, as a result, are subject to the risk factors of those asset classes. Some of those risks include general economic risk, geopolitical risk, commodity-price volatility, counterparty and settlement risk, currency risk, derivatives risk, emerging markets risk, foreign securities risk, high-yield bond exposure, noninvestment-grade bond exposure commonly known as "junk bonds," index investing risk, industry concentration risk, leveraging risk, market risk, prepayment risk, liquidity risk, real estate investment risk, sector risk, short sales risk, temporary defensive positions, and large cash positions.
During a period of falling interest rates, the issuer may redeem a security by repaying it early, which may reduce the Fund's income if the proceeds are reinvested at lower interest rates.
The U.S. Commodity Futures Trading Commission (the "CFTC") and the exchanges are authorized to take extraordinary actions in the event of a market emergency, including the retroactive implementation of speculative position limits or higher margin requirements, establishment of daily limits, and the suspension of trading, which could adversely affect the Fund. Future regulatory developments may impact the Fund's ability to invest in commodity-linked derivatives.
Commodities investments and/or commodity-linked derivative instruments, especially if leveraged, may entail greater volatility from a variety of causes than traditional securities.
The value of commodity-linked derivatives will fluctuate based on changes in the underlying commodity or related index and may entail greater volatility from causes, including drought, floods, weather, livestock disease, embargoes, tariffs, and international economic, political, and regulatory developments. The fund may also be subject to counterparty risk due to the limited number of counterparties.
Commodity-linked notes involve substantial risks, including commodity risk, general derivatives risk, loss of interest and principal, lack of secondary market, and greater volatility that do not affect traditional securities.
Convertible securities have both debt and equity characteristics. Equities may have greater potential growth, but also higher volatility. The value of the convertible and debt securities may fall when interest rates rise. Longer duration securities may be more volatile and sensitive to interest rate changes than the underlying common stock.
Commercial banks and other institutions make corporate loans to companies that need capital to grow or restructure and generally pay interest at rates that change in response to changes to the London Interbank Offered Rate ("LIBOR") or the prime rates of U.S. banks. The market for corporate loans may be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods.
This portfolio could lose money if the issuer or guarantor of a fixed-income security, or the counterparty to a derivatives contract, repurchase agreement, or a loan of portfolio securities, is unable or unwilling to make timely principal and/or interest payments, or to otherwise honor its obligations.
The Fund invests in securities markets that are less developed than the U.S., which may expose the Fund to the process of clearing and settling trades, the holding of securities by local banks, agents, and depositories risks. The less developed a country's securities market is, the greater the likelihood of custody problems.
This portfolio invests in derivative instruments such as swaps, options, futures contracts, forward currency contracts, indexed and asset-backed securities, to be announced (TBAs) securities, interest rate swaps, credit default swaps, and certain exchange-traded funds that involve risks including liquidity, interest rate, market, currency, counterparty, credit and management risks, mispricing or improper valuation, low correlation with the underlying asset, rate, or index and could lose more than originally invested.
Investing in emerging markets may involve greater risks than investing in developed countries, including the possibility of industry concentration, nationalization, taxes and transaction costs, lower trading volumes, and less liquid securities, resulting in higher volatility.
The price of equity or equity-related securities will fluctuate and can decline and reduce the value of a portfolio investing in these securities.
When interest rates rise, certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these securities to fall. Rising interest rates tend to extend the duration of securities, making them more sensitive to interest rate changes and volatile.
Longer-term securities generally change more in response to interest rates than shorter-term securities.
Fixed income prices respond to changing economic environments, including interest rate changes and credit risk perceptions of individual issuers, which can negatively affect the price and income level.
This portfolio focuses on particular countries, regions, industries, and sectors and may be subject to greater risks of adverse developments in such areas.
Investments in foreign securities are subject to adverse fluctuations in foreign currency values, political, less publicly available information, social and economic developments, and possible imposition of foreign withholding taxes on income payable on the securities. They may be more volatile and less liquid than U.S. markets.
Successful use of futures and forwards is dependent upon the subadvisors' skill and experience with those instruments and include risks such as imperfect correlation, potentially unlimited losses, inability to predict movements or direction, counterparty default, and margin requirements resulting in a disadvantageous sale.
Forward foreign currency exchange contracts allow the Fund to establish a fixed rate of exchange for a future point in time and do not eliminate fluctuations in the value of non-U.S. securities, which can minimize returns.
A portfolio that invests in high-yield bonds, lower-rated bonds, and unrated securities are broadly referred to as "junk bonds" and are considered below "investment-grade" by national ratings agencies. They are subject to the increased risk of an issuer's inability to meet principal and interest payment obligations.
When interest rates increase, fixed-income securities generally will decline in value. Long-term fixed-income securities normally have more price volatility than short-term fixed-income securities. Some equity securities may also be sensitive to interest rate changes.
Bank loans, corporate loans, loan participations and assignments involve credit risk, interest rate risk, liquidity risk, and the general risks of being a lender.
The manager's investment techniques could fail to achieve the Fund's investment objective or negatively affect the Fund's investment performance. As with any investment in securities, variable annuities are subject to investment risks, including the possible loss of principal. Investor units will fluctuate with the performance of the underlying investments, and there may be a gain or loss upon redemption. All forms of securities may decline in value due to factors affecting the securities markets generally such as real or perceived adverse economic, political, or regulatory conditions, inflation, changes in interest or currency rates, or adverse investor sentiment. Adverse market conditions may be prolonged and may not have the same impact on all types of securities. The values of securities may fall due to factors affecting a particular issuer, industry, or the securities market as a whole.
The price of securities of mid-capitalization companies tends to fluctuate more widely and erratically than those of larger, more established companies.
The Fund is considered nondiversified and may invest in a limited number of issuers. With a smaller number of different issuers, there is more risk than holding a larger number of issuers, since any changes may cause greater fluctuation of total return and share price of a nondiversified portfolio.
This investment may be closely linked to the performance of the real estate markets and may rise and fall more than the value of shares of a fund invested in a broader range of companies.
A Fund may invest a portion of its assets in securities issued by companies located in Russia. The Russian securities market is relatively new and subject to significant risks, including a lack of central oversight, fraud, or negligence. The Fund intends to mitigate these risks to the extent possible but may not be able to do so.
Investing in smaller, newer companies generally involves greater risks than investing in larger, more established ones and are subject to more abrupt or erratic market movements than larger, more established companies or market averages.
These investments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity's debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. There is no legal process to collect all or part of the principal or interest due.
A Fund may invest in "structured notes," linked to the performance of securities or commodities. Commodity linked notes provide long and/or short exposure to the investment returns of "real assets" (i.e., assets that have tangible properties such as oil, gold, and silver) without investing directly in physical commodities. The notes performance is determined by the price movement of the commodities underlying the note and subject to the credit risk of the issuing party. If the issuer of the note defaults, the Fund may not be able to close out its investment without incurring losses.
The Subsidiary is not registered under the 1940 Act and not subject to all the investor protections of the 1940 Act. The Fund wholly owns and controls the Subsidiary making it unlikely that the Subsidiary will take action contrary to the interests of the Fund and its shareholders. Future regulatory developments may impact the Fund's ability to operate as described in the prospectus and SAI.
Swap agreements have default risk with the counterparty and risk that the Fund will not be able to meet its obligations to pay the other party to the agreement.
The fund restricts its investment in commodities and commodity-linked derivatives to 10% of gross income to qualify as a RIC under Subchapter M as detailed in the SAI. Future regulatory developments may impact the Fund's ability to invest in commodity-linked derivatives.
An exchange-traded fund ("ETF") may fail to accurately track the market segment or index it is meant to track or trade at a discount to its net asset value "NAV". Shareholders of the Fund will bear their proportionate share of the ETF fees in addition to their fund fees.
The Adviser is an indirect wholly-owned subsidiary of Prudential plc, a publicly traded company incorporated in the United Kingdom and is not affiliated in any manner with Prudential Financial Inc., a company whose principal place of business is in the United States of America. Through its ownership structure, the Adviser has a number of global financial industry affiliated entities, and as a result, may be prohibited or limited in effecting transactions in certain securities which may increase expenses and limit performance.
Investments in securities that are difficult to purchase or sell (illiquid or thinly-traded securities) may reduce returns if the Fund is unable to sell the securities at advantageous times or prices. Illiquid securities may also be difficult to value.
Privately placed securities are subject to resale restrictions and may be illiquid or difficult to value or sell.
Performance depends on the changes in market and economic conditions in the selection and percentages of allocations among Underlying Funds.
Trading options, futures contracts and other derivative financial instruments, and some over-the-counter securities entails credit and settlement risk on the counterparties.
The Portfolio's net asset value could decline as a result of changes in the exchange rates between foreign currencies and the U.S. dollar. Certain countries may impose restrictions that block principal and interest payments to investors outside the country.
The value of an ETN may be influenced by time to maturity, level of supply and demand, volatility and lack of liquidity in the underlying securities' markets, interest rates, issuer's credit rating, and economic, legal, political, or geographic events that affect the referenced index. Notes issued by ETNs are unsecured debt of the issuer.
The investment companies (subaccounts) offered in Elite Access are registered as investment companies under the Investment Company Act of 1940, as amended (“1940 Act”), and their shares are registered under the Securities Act of 1933, as amended. There are many differences among 1940 Act registered subaccounts and unregistered hedge funds, including but not limited to liquidity, restrictions on leverage and diversification, fund reporting and transparency, fees, and availability.
The standard death benefit is equal to contract value on the date of the claim and does not include any additional guarantees.
The latest income date allowed is age 95, which is the required age to annuitize or take a lump sum. Please see the prospectus for important information regarding the annuitization of a contract.
Elite Access Fixed and Variable Annuity (VA650, VA660) is issued by Jackson National Life Insurance Company® (Home Office: Lansing, Michigan) and in New York (VA650NY, VA660NY) by Jackson National Life Insurance Company of New York® (Home Office: Purchase, New York). Variable annuities are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. This product has limitations and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other variable annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information.
Jackson is the marketing name for Jackson National Life Insurance Company and Jackson National Life Insurance Company of New York.
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Jackson National Life Insurance Company
1 Corporate Way
Lansing, MI 48951