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What types of fixed annuities are available?
There are two types of deferred fixed annuities. Those purchased with a onetime premium are called single-premium deferred annuities. Annuities funded by ongoing contributions over a period of time are called flexible-premium deferred annuities.

What are the advantages of an annuity?
There are several, but the most important are:
Tax-deferred interest accumulation.* The interest earned on an annuity premium is not subject to current taxation until it's withdrawn from the Contract.* This allows for a potentially greater cash buildup than if income taxes were payable on accumulating interest as earned.
Competitive current interest. Current annuity interest rates generally are competitive with those from other fixed-interest vehicles.
Safety/guarantees. The value of your annuity is backed by the assets of the insurance company. And all fixed annuities offer a minimum interest rate guarantee.
Is the current interest rate the most important consideration in selecting an annuity?
No. Because an annuity is a long-term retirement vehicle, the initial interest rate is not nearly as important as the long-term rate of return. Of course, that's not easy to predict, as the rate will fluctuate over time with changes in economic conditions. But, to know what might happen in the future, it's worth looking at what has happened in the past.

In other words, how a company has treated its Contract holders in the past may be a good indication of how it may treat Contract holders in the future?
Exactly. Some companies offer a very attractive interest rate to entice new Contract holders. But they may not offer that rate for very long, or they may, without prior disclosure, credit a lower rate to subsequent contributions than they are crediting on premiums paid to newly issued annuities. So, before you buy an annuity:

Ask if premiums to existing flexible-premium deferred fixed annuities earn the same rate of interest as premiums to a newly issued annuity. If they don't, existing annuity owners may be subsidizing the company's new business efforts. JNL strives to treat all such annuity-owners equally when it comes to crediting interest.

What other things should I look for?
Avoid annuity Contracts that charge front-end Contract fees and sales loads, or excessive annual maintenance fees or charges. They reduce the amount of money that actually goes to work for you. The length of the surrender charge may be important for you, although annuities should be considered as a long-term retirement vehicle. Some companies, Jackson National® included, waive the surrender charge in the event of premature death or annuitization; see your Representative for details.

What's the difference between qualified and nonqualified annuities?
A qualified annuity is used to fund a tax-qualified retirement plan such as a traditional IRA or an HR-10. In most cases, premiums paid to a qualified annuity are tax-deductible. A nonqualified annuity is used to fund a cash accumulation program which does not qualify for a front-end tax deduction. But whether an annuity is qualified or nonqualified, its premiums always accumulate interest that is free of current income tax until withdrawn.*

Is there anything else I should know?
Only an annuity can provide you with an income you can never outlive, and the most tried-and-true annuities are available only through life insurance companies. By funding a deferred fixed annuity today, you lock in income guarantees for your future.

Remember, this brochure is designed only to provide a general overview of deferred fixed annuities. Interested persons are encouraged to consult their Representative, lawyer, accountant, or tax counsel for answers to questions regarding their specific situation.

Annuity Contracts have limitations and terms for continuing coverage. For costs and complete details of the coverage, call your Representative or the Company.

* If you are considering an annuity to fund your qualified plan, such as an IRA or 401(k), the tax-deferral feature of an annuity offers no additional value. Tax-deferral may not be available if the annuity is owned by a "non-natural person" such as a corporation or certain types of trusts.

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