Optional Liquidity Feature

Average: 5 (1 vote)

There is, in fact, an optional liquidity rider that can be attached to the Elite Access variable annuity from Jackson National.

This is a pretty interesting feature.  Not sure that it exists anywhere else and should receive wider coverage as it could help silence many of the variable annuity critics who harp on withdrawal charges and costs.

The Liquidity Option is explained in the prospectus.

Pretty simple actually.

The contract owner can elect to purchase the Liquidity Option.

If they do so, the 5 year surrender fee schedule is waived.

The quid pro quo is an annual fee in exchange for this waiver.

25 basis points per year is added to the costs.

As Jackson explains in their prospectus:

"the 0.25% is on an annual basis of the Daily Contract Value...regardless of whether you take any withdrawals.  Charges are deducted daily as part of the calculation of the value of the Accumulation Units.  We stop deducting this charge on the date you annuitize."



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