variable annuities

is the cost of your clients living benefit Variable annuities are long-term,

costing more than you think? tax-deferred investments designed

for retirement, involve investment
risks and may lose value. Earnings
Hidden costs can have a significant impact on a clients overall returns, so its important to understand how charges are assessed on optional are taxable as ordinary income when
living benefits. The following hypothetical scenario shows the difference Client A and Client B pay in fees over time even though the annual distributed and may be subject to
a 10% additional tax if withdrawn
living benefit charge is the same. Client A is charged on the highest value the Guaranteed Withdrawal Balance (protected balance) reaches
before age 59.
over the life of the contract, called the high water mark. Client B is charged on a protected balance that is adjusted for withdrawals. Both
Optional living benefits are available
clients begin with an initial investment of $100,000, are charged an annual fee of 1.25%, and immediately begin taking $5,000 each year.* for an extra charge in addition to
$1,250 each year
the ongoing fees and expenses of
the variable annuity.
$100,000
$1,250 High Water Mark
$1,188
$1,125 Client A pays the same $1,250 fee
$80,000 $1,063 every year because the charge is Client A Fee
$1,000 based on the high water mark. Client B Fee
$938
$875
Protected Balance

$60,000 $813
$750
$688
$625 After 20 years, Client A has paid
$40,000 $563 $25,000 in fees, almost double
$500
the $13,125 Client B paid. Over
$438
Client Bs fee decreases $375
time, this difference can also
$20,000 as the protected balance declines. $313 add up in missed opportunity
$250 for market gains for Client A.
$188
$125
$0 $63
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Years

This hypothetical example is for illustrative purposes only and is not representative of the future performance of any particular product. Past performance is no guarantee of future results. Assumes a 65-year-old invests $100,000 in a variable
annuity and elects a living benefit with an annual benefit-based charge of 1.25%. Growth in the contract is assumed to be 0%.
* All withdrawals, including systematic withdrawals, required minimum distributions (RMDs) and free withdrawals, apply to the total amount withdrawn in a contract year. The RMD withdrawal must be for this contract only and the owner must specify
that the withdrawal is an RMD.
Please see reverse for important additional information. 100000
For representative use only. Not for public distribution.

Not FDIC/NCUA insured May lose value Not bank/CUguaranteed Not a deposit Not insured by any federal agency
80000
 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 important information. Please contact your Internal Wholesaler to obtain the prospectuses. Please read the prospectuses
carefully before investing or sending money.
This material was prepared to support the promotion and marketing of Jackson variable annuities. Jackson, its distributors and their respective
representatives do not provide tax, accounting or legal advice. Any tax statements contained herein were not intended or written to be used, and
cannot be used, for the purpose of avoiding U.S. federal, state or local tax penalties. Clients should consult their own independent advisors as to any
tax, accounting, or legal statements made herein.
T he latest income date allowed on variable annuity contracts 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.
We reserve the right to refuse any subsequent premium payments, subject to state applicability.
Impact of excess withdrawals: If at the time of withdrawal the sum of all withdrawals taken in a contract year is greater than the guaranteed annual withdrawal amount (GAWA) or the RMD, or greater than the GAWA/RMD
plus earnings-sensitive adjustment for the LifeGuard Freedom 6 Net benefits, the payment will be recalculated and possibly reduced. Rules vary by GMWB.
Withdrawals taken under IRC 72(t)/72(q) are not considered RMDs for purposes of preserving the guarantees under the GMWB. 72(t)/72(q) distributions under a GMWB will have the same effect as any withdrawal or excess withdrawal.
The minimum death benefit and withdrawal guarantees, as well as any fixed account crediting rates or annuity payout rates, are backed by the claims-paying ability of Jackson National Life Insurance Company or Jackson
National Life Insurance Company of New York. They are not backed by the broker/dealer from which this annuity contract is purchased, by the insurance agency from which this annuity contract is purchased or any affiliates of
those entities, and none makes any representations or guarantees regarding the claims-paying ability of Jackson National Life Insurance Company or Jackson National Life Insurance Company of New York.
Variable annuities (VA620, VA630, VA770) are issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and in New York (VA620NY 09/12) by Jackson National Life Insurance Company of New York
(Home Office: Purchase, New York). Variable products are distributed by Jackson National Life Distributors LLC, member FINRA. May not be available in all states and state variations may apply. These products have limitations
and restrictions, including withdrawal charges and excess interest adjustments (interest rate adjustments in New York) where applicable. Jackson issues other 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.

Firm and state variations may apply.

For representative use only.
Not for public distribution.

CMV3061 09/16 www.jackson.com