FIXED ANNUITY WITH INDEX-LINKED INTEREST

Transcription

1 FIXED ANNUITY WITH INDEX-LINKED INTEREST JACKSON AscenderPlus select JACKSON AscenderPlus select with LifePay SM with LifePay SM Not for use in Iowa. Not FDIC/NCUA insured May lose value Not bank/cu guaranteed Not a deposit Not insured by any federal agency

2 Create Your Retirement Story Managing risk while realizing growth is an important part of building a long-term plan. Low interest rates and the need to outpace inflation can be challenges to retirement saving. Finding a retirement product that can overcome those challenges while providing lasting income is an important step in building your overall retirement strategy. A Jackson AscenderPlus Select Fixed Annuity with Index-Linked Interest may be able to help. Fixed annuities with index-linked interest combine the protection of a fixed annuity with the potential growth of additional interest that is linked to the return of an index. An index is a measurement based on a selection of stocks. While a fixed annuity with index-linked interest does not invest directly in an index, it uses the selected index to measure the additional interest that may be credited to your contract. A Jackson AscenderPlus Select fixed annuity with index-linked interest provides you with: tax-deferred * earnings, which allows your money to continue to grow tax free until it is withdrawn flexible income options, including lifetime income through LifePay SM, a Lifetime Income Rider guarantees, including a guaranteed death benefit, that help protect you and your loved ones Jackson Financial Strength Ratings A+ (Superior) A.M. Best financial strength rating, the second highest of 16 rating categories AA (Very Strong) Fitch Insurer financial strength rating, the third highest of 19 rating categories AA (Very Strong) Standard & Poor s Insurer financial strength rating, the third highest of 21 rating categories A1 (Good) Moody s Investors Service, Inc. Insurance financial strength rating, the fifth highest of 21 rating categories What is a fixed annuity with index-linked interest? Fixed annuities with index-linked interest are long-term, tax-deferred vehicles designed for retirement. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn prior to age 59½. LifePay is an optional income rider that is available for an additional charge. 1 * Tax deferral offers no additional value if an annuity is used to fund a qualified plan, such as a 401(k) or an IRA, and may not be available if the annuity is owned by a non-natural person such as a corporation or certain types of trusts. Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company. Ratings current as of 03/31/15.

3 growth, income, and Protection Build a retirement plan that fits your unique goals. Growth: Select Your Index and Crediting Method The opportunity for tax-deferred growth through additional interest that is linked to the performance of an index gives you even more retirement income potential. Choose from three different index options and crediting methods to decide which combination, or combinations, work best for you to measure and calculate additional interest. Income: Choose a Flexible Option to Fit Your Needs You have access to your money in a number of ways and under several circumstances. Whether you have a medical related emergency, are required to take required minimum distributions (RMDs), or are ready to begin taking retirement income, you have choices that give you the flexibility you may need. Protection: Guarantees You Can Count On The protection of a guaranteed minimum value 1 gives you the ability to either maintain or increase your initial premium, while a guaranteed death benefit helps provide for loved ones. Having a foundation that you know will be there when you need it allows you to focus on growing your future retirement income. Contract Highlights Issue ages 0-85 $10,000 minimum initial premium ($5,000 for qualified retirement accounts). $25,000 if the LifePay optional lifetime income rider is elected at issue. $500 minimum additional premium. (For qualified and nonqualified. Only allowed in the first contract year.) Indexed Option periods 2 available: 5-, 7-, or 10-year (Subject to availability. Contact your representative for more information.) 2

4 GROWTH Index Options For Growth Opportunities Select one, two, or all three index options to measure the additional interest you receive. Having choices as to how you grow your retirement income allows you to create a plan that suits your goals. With Jackson AscenderPlus Select, not only can you pick from three index option periods 2 (5-, 7-, or 10- years, subject to availability), but you also have three choices of indexes. You may allocate your premium in full to any index, or you may elect to divide it in whole percentages among all three. Choose a U.S. market focus with the S&P 500 Index or Strategic4 Index SM, or diversify your growth potential with the Multi-Strategy Index, which is a selection of U.S. and international stocks. The Multi-Strategy and Strategic4 Indexes are measurements of stock performance created by Jackson to add opportunity for greater diversification. All three indexes are unmanaged, do not include the payment or reinvestment of dividends in the calculation of performance, and are not available for direct investment. The S&P 500 Index 3 For growth opportunities that are centered mostly on the U.S. market, you may want to consider the S&P 500 Index. The S&P 500 Index is a market capitalization-weighted index of 500 stocks selected by the S&P Dow Jones Indices U.S. Investment Committee. The S&P 500 focuses on the large-cap sector of the market, and companies in the S&P 500 are considered leading companies in leading industries. Widely regarded as a single gauge of the U.S. equities market, this index includes companies in leading industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also used as a proxy for the total U.S. market. Multi-Strategy Index If you are looking for growth opportunities that provide more international exposure, consider the Multi-Strategy Index. The Multi-Strategy Index is a proprietary index created by and for the sole use of Jackson. The index is constructed by applying five pre-determined selection criteria and contains approximately 160 stocks. On or about January 1st, the index is reconstituted and an initial weight of approximately 20% is applied to each of the five criteria. By design, the five criteria are constructed to minimize company overlap. The index includes stocks from large, mid-sized, and smaller U.S. and international companies, based on market capitalization. This index seeks broad diversification across its five distinct strategies to help ensure a consistent management style. Strategic4 Index The Strategic4 Index is made up of companies in the S&P 500 and can provide a more centered approach to growth. It is also a proprietary index created by and for the sole use of Jackson. The index is constructed by applying four pre-determined selection criteria. On or about January 1st, the index is reconstituted and an initial weight of approximately 25% is applied to each of the four criteria. This index seeks broad diversification across its four distinct strategies to help ensure a consistent management style. 3 Values for the indexes will be calculated on each Index Determination Date (IDD) (typically every Friday, or the next business day if markets are closed on Friday), and index values will be published weekly at Multi-Strategy and Strategic4 Indexes calculated by Thomson Reuters. Information supplied by Thomson Reuters.

5 Growth Multi-Strategy Index Composition The Multi-Strategy Index is constructed using the following five selection criteria: Approximate Initial Weightings Principal Investment Strategies Industry Leaders Criteria 20% Large-Cap Criteria 20% Companies are selected once annually Small-Cap Criteria 20% Disciplined process is repeated each year Global Criteria 20% Weightings are rebalanced annually Value Criteria 20% Selection approach of the underlying strategies Industry Leaders Criteria (10 companies) The 30 companies in the Dow Jones Industrial Average SM are ranked by dividend yield. Equal amounts of the 10 companies with the highest dividend yields are selected. Large-Cap Criteria (10 companies) The 500 companies in the S&P 500 Index are ranked by market capitalization. (Market capitalization, or market cap, is determined by multiplying the number of shares outstanding by the share price.) The 250 companies with the largest market caps are then ranked by the ratio of market cap to sales (known as the price-to-sales ratio). The 125 companies with the lowest price-to-sales ratios are then ranked by share price appreciation in the last year. Equal amounts of the 10 companies with the greatest share price appreciation in the last year are selected. Small-Cap Criteria (100 companies) Companies with applicable market capitalizations that meet the average daily dollar trading volume requirements are selected from the New York Stock Exchange, American Stock Exchange and Nasdaq. (Market capitalization, or market cap, is determined by multiplying the number of shares outstanding by the share price.) Exclude limited partnerships, American Depository Receipts of foreign companies, and mineral and oil royalty trusts. Exclude companies whose shares have appreciated in price by more than 75% in the last year. Retain companies with positive sales growth in each of the last three years. Retain companies with positive earnings in the last year. The 100 companies with the greatest share price appreciation in the last year are selected in proportion to their market capitalization. Global Criteria (15 companies) All the companies in the Dow Jones Industrial Average, the United Kingdom s Financial Times Industrial Ordinary Share Index and Hong Kong s Hang Seng Index are ranked by dividend yield. The 10 companies with the highest dividend yields from each of the three indexes are identified. Of those 10, equal amounts of the five companies with the lowest share prices from each of the three indexes are selected. Value Criteria (25 companies) All companies that pay dividends and trade on the New York Stock Exchange are ranked by market capitalization. (Market capitalization, or market cap, is determined by multiplying the number of shares outstanding by the share price.) Exclude all financial, transportation and utility companies, limited partnerships, the 30 companies in the Dow Jones Industrial Average and American Depository Receipts of foreign companies. The 400 companies with the highest market capitalization are retained. The 75 companies with the highest dividend yields are retained. Of those, equal amounts of the 25 companies with the lowest dividend yields are selected. Strategic4 Index Composition The Strategic4 Index is constructed using the following four selection criteria: Approximate Initial Weightings Principal Investment Strategies Quality Value 25% Companies are selected once annually Quality Cash Flow 25% Diversified Yield 25% Disciplined process is repeated each year Weightings are rebalanced annually Shareholder Yield 25% Selection approach of the underlying strategies Quality Value (30 companies) The 500 companies in the S&P 500 are reviewed; stocks of companies viewed as investment grade are included. Companies are ranked by return on invested capital (ROIC). The top companies with the strongest ROIC are then ranked by price-to-book ratios. Equal amount of the 30 companies with the strongest ROIC and best price-to-book ratios are selected. Quality Cash Flow (30 companies) The 500 companies in the S&P 500 are reviewed; only companies with positive free cash flow are included. Equal amounts of the 30 companies with the highest free cash flow yields are selected. Diversified Yield (30 companies) The 500 companies in the S&P 500 are reviewed; stocks that have an attractive dividend yield and strong capital structures are included. Equal amounts of the 30 companies with stocks representing the top 3 dividend yielding stocks in each sector are selected. Shareholder Yield (30 companies) The 500 companies in the S&P 500 are reviewed. Equal amounts of the 30 companies that generate positive cash flow and provide high total yield to investors are selected. 4

6 GROWTH CREDITING METHODS to HELP You earn more Choose your crediting method(s) to calculate the additional interest you receive. Now that you have the index, or indexes, you want, you can select a crediting method to calculate your growth. When interest is earned in your contract, it is calculated and locked in each Indexed Option Year using a crediting method. Jackson offers three crediting methods to help you earn interest in a variety of market conditions. You may select any one of these methods, or any combination of two or three, and you can change your selection at the end of each Indexed Option Year. Your representative can help you determine which combination of crediting methods is best for your situation. Annual Reset Point-to-Point This crediting method compares the index value at the beginning of each year with the value at the end. Whenever the ending value is higher, the percentage increase, multiplied by the Index Participation Rate (IPR) *, is credited to your contract, up to the Point-to-Point Annual Cap (PPAC). If the ending value is lower, no interest will be credited but no interest will be lost either. The PPAC will never be less than 1.25% regardless of the index selected. Surging Market. Annual Reset Point-to-Point tends to do better when the selected index declines early in the period, but then rebounds later in the year or in moderate but steadily increasing periods. Hypothetical Example Index Value Initial Index Value Receive the percentage increase, up to the Point-to-Point Annual Cap. End of Year 1 5

7 Growth Annual Reset Monthly Averaging With this crediting method, each year the 12 monthly anniversary index values are averaged and compared to the beginning index value. Whenever the ending average value is higher, the percentage increase, multiplied by the IPR *, up to the Monthly Average Annual Cap (MAAC) is credited to your contract. If the ending average value is lower, no interest will be credited but no interest will be lost either. The MAAC will never be less than 1.25%, regardless of the index selected. Volatile Market. Annual Reset Monthly Averaging tends to do better in volatile environments, particularly when the selected index increases early in the year but then declines later in the year. If most of the index gains come in one or a few months late in a year, the effect of monthly averaging would moderate the amount of interest earned. Hypothetical Example Index Value Initial Index Value Receive the percentage increase using an average of the 12 monthly index values, up to the Monthly Average Annual Cap. End of Year 1 Annual Reset Monthly Sum This crediting method adds monthly percentage increases, multiplied by the IPR * (up to the Monthly Cap), with monthly percentage decreases for each of the 12 months. The final sum of the monthly percentages, if positive, is credited to your contract. If the calculation is negative, no interest will be credited but no interest will be lost either. The Monthly Cap will never be less than 0.10% regardless of index selection. Bull Market. Annual Reset Monthly Sum tends to do better in a bullish environment. Because there is no Cap on monthly decreases, one or more bad months could limit or even wipe away gains for the period. Hypothetical Example Monthly Index Change (%) Initial Index Value Receive the sum of the monthly percentage index increases (up to the Monthly Cap) and decreases. End of Year 1 * The Index Participation Rate (IPR) is declared at the beginning of the indexed option period and is guaranteed for the life of the contract. The IPR may vary by index, Indexed Option Period, and crediting method. 6

8 GROWTH Working Together Your selected index(es) and crediting method(s) work together to build your retirement income. Below is an example using the S&P 500 and the Annual Reset Point-to-Point crediting method. Keep in mind that you have the flexibility to select any or all of the indexes and crediting methods when you open your contract. Hypothetical 10-Year FIA Performance based on the Historical Return of the S&P 500 Index Investment: $100,000 (100% linked to the S&P 500 Index); Index Participation Rate (IPR): 100%; 10-year Indexed Option Period (no withdrawals taken); Annual Cap: 5.50% (Guaranteed minimum 1.25%); Crediting Method: Annual Reset Point-to-Point crediting method compares the index value at the beginning of each year with the value at the end. Gains are locked in and protected from loss in down market years In years the market goes up, you lock in gains, giving your Accumulation Value a boost. Accumulation Value $147,475 $110,448 $100, % Minimum Cap Start Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Cumulative Return S&P 500 Index Annual Return Annual Reset Point-to-Point Cap 8.55% 11.12% -2.08% % 28.60% 11.05% 1.38% 14.19% 25.16% 10.99% 72.39% 5.50% 5.50% 0.00% 0.00% 5.50% 5.50% 1.38% 5.50% 5.50% 5.50% 47.48% Interest Credited $5,500 $5,803 $0 $0 $6,122 $6,458 $1,710 $6,908 $7,287 $7,688 $47,475 The assumptions in this illustration, based on the S&P 500 Index, from , are purely hypothetical and are not in any way guaranteed or intended to represent the past or future performance of any product. This illustration may not reflect current Jackson Interest Caps. 7

9 explore the possibilities 8

10 Income LifePay income that will last as long as you do Longevity protection with lifetime income and opportunities for additional growth. Retirement starts a new stage in life. Many people are living longer, healthier lives, which brings new challenges. Living longer means that you need your retirement income to stretch further and last longer. LifePay, an optional Lifetime Income Rider available for an additional charge, provides guaranteed income each year for as long as you live. This optional rider also provides the opportunity to grow your income while giving you the flexibility of starting or stopping payments to fit your unique needs. LifePay can be canceled at the end of your Indexed Option Period. Guaranteed Growth LifePay provides two ways in which your lifetime income benefit base (LIBB) can grow. The LIBB is the balance from which you take income. One way for your LIBB to grow is through a roll up. During the roll up period, in years with no withdrawals and when the additional interest is less than 5%, a roll up is added to your LIBB. The roll up period is the shorter of ten years following the LifePay election date or the indexed option anniversary immediately following the owner s 80th birthday. 4 A second way to grow your LIBB is through a step-up. If your index option(s) perform well, step-ups will automatically lock in gains. This occurs on each indexed option anniversary for the life of your contract. LifePay Quick Facts Issue ages Lifetime income lock-in age: 45. May be elected at issue or on any Indexed Option Anniversary. $25,000 minimum initial premium if elected at contract issue. If elected after issue, the Accumulated Value must equal $25,000. $500 minimum additional premium. (Only allowed in the first contract year.) Indexed Option periods available: 7- or 10-year only. (Subject to availability. Contact your representative for more information.) Annual charge: 0.50% for single life option, 0.80% for joint life option. 7 Lifetime Income When you reach retirement and are ready to begin taking withdrawals, LifePay guarantees income every year for as long as you live. The lifetime income payment (LIP) you receive is a percentage of the LIBB and will be between 3% and 7.5% annually, based on your age at the time of your first withdrawal. 5 While the percentage you receive will never increase after withdrawals begin, the amount you receive may increase, through the roll ups and annual step-ups. And remember, you have the flexibility to start and stop withdrawals as your needs change. Keep in mind that withdrawing more than your allowed percentage annually may result in future guaranteed amounts being reduced. Joint Life Option LifePay also comes with a joint life option, which provides lifetime income payments for you and a second covered life. 6 All of the underlying features of LifePay are the same; you will receive a 5% roll up in years with no withdrawals during the roll up period and annual step-ups. The lifetime income payments will be based on the younger covered life s age at the time of the first withdrawal. Payment percentages will be the same as on the single life option. Lifetime Income Payment (LIP) 5 Age Ranges LIP % % % % % % % % % 9

11 Income How it works Roll Up Each year during the roll up period that you do not take a withdrawal, you are eligible to receive a roll up. The roll up is 5% of your lifetime income benefit base (LIBB). For example, if you begin with a LIBB of $100,000 and do not take a withdrawal, on the contract anniversary 5%, or in this case $5,000, will be added to your LIBB, giving you a new LIBB of $105,000. Initial Premium Annual Roll up LIBB Contract Value Year End Step-Up Another way your LIBB can grow is through a step-up. In years in which you do not receive a roll up and your contract value grows higher than your LIBB, you will receive a step-up. Step-ups can occur every indexed option anniversary for the life of the contract. Initial Premium Annual Step-Up LIBB Contract Value Year End Putting It Together In years without a withdrawal, you may increase your LIBB with a roll up. In years in which the contract value grows higher than the LIBB, you may receive a step-up. In subsequent years, roll ups and step-ups build upon each other, giving you an even higher annual withdrawal amount. In years without a withdrawal, you may increase your LIBB with a roll up. When your contract does well, lock in gains with annual step-ups. Roll ups are added to the previous stepped-up amount giving you even more income. LIBB Initial Premium Contract Value Age: These hypothetical examples are for illustrative purposes only and are not representative of the future performance of any particular product. Past performance is no guarantee of future results. Step-ups and the 5% roll up are applied on an annual basis, if applicable, to your LIBB and you receive the greater of the two, not both. 10

12 Income Additional Income options If your needs change at any time during your contract, there are multiple ways to access your money. Jackson AscenderPlus Select offers options that allow early withdrawals without penalty. For any other withdrawals prior to the end of your selected Indexed Option Period, withdrawal charges may apply. Earnings are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn prior to age 59½. Partial withdrawals will reduce all contract values accordingly, and at least $2,000 must remain in the account to keep the contract active. Free 10% Withdrawals Each year, you may withdraw up to 10% of your Accumulation Value free of withdrawal charges. If a single withdrawal exceeds 10% of the Accumulation Value, the entire amount will be subject to withdrawal charges. If a series of withdrawals results in a total withdrawal in excess of 10% in a single year, then the withdrawal that pushes the total over 10% and all subsequent withdrawals in that year will be subject to withdrawal charges. The free withdrawal is not cumulative from year to year. If LifePay is elected, withdrawals under the 10% free withdrawal provision but in excess of the lifetime income payment allowed will result in future guaranteed lifetime income payments being reduced. Required Minimum Distributions (RMDs) After age 70½, the owner-required RMD for this contract may be taken from your qualified Jackson AscenderPlus Select contract free of withdrawal charges, even if the amount exceeds the 10% free withdrawal provision. 8 Income Stream Options When you are ready to begin a stream of income, you have several options available. Anytime after the 5th contract year, you may elect to convert your Jackson AscenderPlus Select Contract Value into a stream of income including an option for lifetime income without paying withdrawal charges. 9 The options available under your contract are: Life annuity income Joint and survivor annuity income Life annuity income with 120 or 240 monthly payments Annuity Income for period certain The Maturity Date allowed under the contract is the owner s age 95, which is the required age to annuitize or take a lump sum. Withdrawal Charges If you take full or partial withdrawals exceeding contract limits prior to the end of your Indexed Option Period, they may be subject to withdrawal charges as shown in the following table. Withdrawal charges are based on years since contract issue and will not apply after the expiration of the Indexed Option Period. Contract Year Withdrawal Charges All states except CA (Ages 0-85) CA only (Ages 0-85) % 8.25% % 7.25% % 6.50% % 5.50% % 4.50% % 3.75% % 2.75% % 1.75% % 0.75% % 0.00% % 0.00% 11

13 Protection Keep retirement ASSETS for when you need THEM MOST The guarantees you need to help shield against market downturns can help provide for unexpected life events. Fixed Option Having an option that earns interest at a rate never less than the guaranteed minimum interest rate can help you to preserve and even grow your initial premium. 10 When you open a Jackson AscenderPlus Select contract, 100% of your premium begins to earn interest in the fixed account. On the first Friday after the contract is issued, that premium, including any interest earned, is transferred into the Indexed Option(s) of your choice. 11 However, you may choose to leave all or a portion of your premium in the fixed account. * You also have the option to move premium back into the fixed account on the Indexed Option Anniversaries. Guaranteed Minimum Value Your Jackson AscenderPlus Select contract provides protection through the Guaranteed Minimum Value. 1 Maximum Value $120,952 This ensures that at the end of the Indexed Option Period, your value will never be less than your initial premium (assuming you have not taken any withdrawals). Initial Premium $100,000 3% Growth Accumulation Value $100,000 The chart (on the right) shows that with a 1% guarantee on 90% of your initial premium, the guaranteed minimum value only reaches $99,146 at the end of the contract s 10-year Indexed Option Period. However, because Jackson s AscenderPlus Select guarantees the contract s ending value is never less than the initial premium (assuming no withdrawals or optional rider charges), you would receive no less than $100,000. $90,000 Initial Value 1% Growth End of 10-Year Indexed Option period $99,146 Guaranteed Minimum Value The Guaranteed Minimum Value earns between 1%-3% annual growth, declared at contract issue, on 90% of your initial premium adjusted for withdrawals. Special Benefit Value The Special Benefit Value on your Jackson AscenderPlus Select contract is another way you are protected. This value increases the minimum guarantee to address unforeseen circumstances. The Special Benefit Value is available in the event of your death, terminal illness, or confinement to a nursing home or hospital. (Please see the next page for further description of these benefits and their limitations.) The Special Benefit Value is available during the Indexed Option Period, if the LIR is not elected, or for the life of the contract, if the LIR is elected. Maximum Value $134,392 3% Growth Initial Premium $100,000 1% Growth $110,462 Minimum Value End of 10-Year Index Option Period * Jackson reserves the right to restrict or prohibit new business, subsequent premium, or transfers to the Fixed Option. Assuming no index growth and no withdrawals or optional rider charges during the indexed option period. The Special Benefit Value earns between 1%-3% annual growth, declared at contract issue, on 100% of your initial premium adjusted for withdrawals. 12

14 Protection Protection Life isn t always predictable. Jackson AscenderPlus Select provides access to your funds, without penalty, in certain circumstances. Terminal Illness Benefit 12 You or your joint owner will become eligible for this benefit beginning in the second contract year. If you or your joint owner is diagnosed with a terminal illness expected to result in death within 12 months, you can access without charge the greater of the Contract Value or the Special Benefit Value. The Terminal Illness Benefit is subject to a maximum withdrawal of $250,000. Extended Care Benefit 13 You or your joint owner will become eligible for this benefit beginning in the second contract year. If you or your joint owner is confined to a nursing home or hospital for 90 consecutive days by medical necessity, you may access up to 100% of the greater of the Contract Value or the Special Benefit Value free of withdrawal charges. The Extended Care Benefit is subject to a maximum withdrawal of $250,000. Guaranteed Death Benefit In the event of your death, your beneficiaries will receive the greater of the Contract Value or the Special Benefit Value. They may elect a lump sum payment or a guaranteed life income. If you prefer, you may specify your beneficiaries payout option in advance. (Preselected Death Benefit is available for nonqualified and IRA contracts only.) 13

15 Jackson AscenderPlus Select means growth, income, and protection all in one fixed annuity with index-linked interest. Contact your representative today!

16 1 The Guaranteed Minimum Value is credited daily, and is the minimum amount you will receive if the Accumulation Value is less. 2 You should give careful consideration to your individual situation, needs and goals before purchasing Jackson AscenderPlus Select. Age and liquidity needs are particularly important when considering Indexed Option Periods of longer duration, which may not be appropriate for everyone. The availability of each Indexed Option Period is subject to change. Restrictions may apply to Indexed Option Periods. 3 The S&P 500 Index is a product of S&P Dow Jones Indices LLC ( SPDJI ), and has been licensed for use by Jackson National Life Insurance Company ( Jackson ). Standard & Poor s, S&P and S&P 500 are registered trademarks of Standard & Poor s Financial Services LLC ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Jackson. Jackson AscenderPlus Select is not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. 4 The annual roll up is applied in years no withdrawals are taken during the roll up period. At election, the roll up base is equal to the lifetime income benefit base (LIBB). At step-up (if the LIBB increases upon step-up), the roll up base is set equal to the greater of the LIBB following the step-up or the roll up base prior to the step-up. If a partial withdrawal made during the indexed option year exceeds the greater of the lifetime income payment (LIP) or the required minimum distribution (RMD), the roll up base is set to the lesser of the LIBB following the partial withdrawal or the roll up base prior to the partial withdrawal; otherwise, no adjustment is made. The roll up base is increased by the amount of any subsequent premium payments, available in the first contract year only, less any applicable taxes, subject to a maximum of $5 million. The roll up period begins on the initiation date. The roll up period ends on the earlier of (a) the 10th indexed option anniversary following the initiation date or (b) the date on which the contract value falls to zero, or (c) the indexed option anniversary immediately following the owner s 80th birthday. Each time the roll up is applied, the LIBB equals the LIBB prior to application of the roll up plus 5% of the roll up base, subject to a maximum of $5 million. The LIP is recalculated and is equal to the greater of the LIP percentage multiplied by the new LIBB or the LIP prior to the roll up. 5 The LIP percentage is determined at the earlier of: a) the time of the first withdrawal after the initiation date, b) the date the contract value reduces to zero, c) the date the LIR is continued by the spousal beneficiary, or d) upon election of the life income of the LIP income option. The LIP percentage is based on the owner s (or older joint owner s) attained age. All withdrawals, including systematic withdrawals, required minimum distributions (RMDs) and free withdrawals, apply to the total amount withdrawn in an indexed option year. The RMD withdrawal must be for this contract only and the owner must specify that the withdrawal is an RMD. Impact of excess withdrawals: If at the time of withdrawal the sum of all withdrawals taken in an indexed option year is greater than the LIP or RMD, the dollar-for-dollar portion is equal to the greater of (a) LIP or the RMD less all prior partial withdrawals made in the current indexed option year or (b) zero. The LIBB is equal to the greater of (a) the LIBB prior to the partial withdrawal less the dollar-for-dollar portion reduced for the excess withdrawal amount in the same proportion as the contract value is reduced or (b) zero. The LIP is reduced for the excess withdrawal amount in the same proportion as the contract value. Rules may vary upon spousal continuation or if the for-life guarantee is not in effect. Withdrawals under LifePay are assumed to be the total amount deducted from the contract value, including any withdrawal charges and other charges or adjustments. Withdrawals in excess of free withdrawals may be subject to a withdrawal charge. Election of 72(t)/72(q) distributions may not be appropriate on contracts with a living benefit. Withdrawals taken under IRC 72(t)/72(q) are not considered required minimum distributions for purposes of preserving the guarantees under the LIR. 72(t)/72(q) distributions under a LIR will have the same effect as any withdrawal or excess withdrawal. 6 LifePay with joint option is available on both qualified and nonqualified contracts. For qualified contracts, the annuitant and the sole primary spousal beneficiary, or annuitant and contingent annuitant on qualified custodial contracts, are defined as covered lives, and the owner and annuitant must be the same person. For nonqualified contracts, the joint owners are defined as the covered lives. Only a covered life may continue the for-life guarantee upon spousal continuation. The benefit is based on the younger covered life. At election, both covered lives must be between ages 45 and The total annual charges are calculated as a percentage of the LIBB and deducted annually after interest is credited on the indexed option anniversary. Jackson reserves the right to prospectively increase the charge after the fifth indexed option anniversary subject to a maximum annual charge of 1.00% (1.60% for joint life option). If the charge percentage is increased, a notice will be sent to the owner prior to the indexed option anniversary. If the owner opts to terminate LifePay, election must be received prior to the next indexed option anniversary following the charge increase notice. 8 The RMD withdrawal value is based on the Contract Value plus the value of any additional benefits or the Special Benefit Value, whichever is greater. If a withdrawal taken before the end of your chosen Indexed Option Period exceeds the greater of the RMD requirement or the 10% free withdrawal benefit, the full amount withdrawn will be subject to withdrawal charges. 9 Conversion to a stream of income prior to the 6th contract year is permitted, but will be subject to all applicable charges. 10 The guaranteed minimum interest rate will be declared each calendar year and will fall between 1%-3%. Once a contract is issued, the guaranteed minimum interest rate will not change. 11 If the New York Stock Exchange is closed on any Friday, the balance will be transferred on the next business day. 12 State variations may apply. Diagnosis must be made by a U.S.-licensed physician. The Company reserves the right to order a second exam, at its own cost, by a physician of its own choice. All contract values will be reduced proportionately based on the amount withdrawn. A payment under the Terminal Illness Benefit is payable only once, regardless of the subsequent occurrence of the same or a different condition. 13 Not available in California; state variations may apply. All contract values will be reduced proportionately based on the amount withdrawn. A payment under the Extended Care Benefit is payable only once, regardless of any subsequent confinement. The Company reserves the right to require proof of confinement. Jackson AscenderPlus Select Modified Single Premium Deferred Fixed Annuity With Index-Linked Interest (contract form numbers ICC15 FIA150, FIA150) is issued by Jackson National Life Insurance Company (Home Office: Lansing, Michigan) and distributed by Jackson National Life Distributors LLC. Not available in all states and state variations may apply. This product is a fixed annuity that does not participate in any stock or equity investments and has limitations and restrictions, including withdrawal charges. During the Indexed Option Period the annuity s cash withdrawal value may be less than the initial premium. Additional premium is permitted in the first contract year. For costs and complete details, contact your representative or the Company. The design of this annuity contract emphasizes the protection of credited interest rather than the maximization of interest rate crediting. Jackson issues other annuities with similar features, benefits, limitations and charges. Discuss them with your representative or contact Jackson for more information. Fixed annuities with index-linked interest may not be suitable for everyone. The amount available for a full withdrawal prior to the end of the Indexed Option Period will be equal to the greater of the Accumulation Value, less withdrawal charges, or the Guaranteed Minimum Value. Withdrawal charges are based on years since issue and state of issue as a percentage of the Accumulation Value. All charges will be waived after the expiration of the Indexed Option Period selected. If you cancel the contract within 10 days of receipt (or the period required in your state), Jackson will refund 100% of your premium adjusted for any withdrawals. The Multi-Strategy and Strategic4 indexes are proprietary indexes of stock performance created by Jackson to add the opportunity for greater diversity. The underlying stocks are selected according to five different strategies (for the Multi-Strategy index) or four different strategies (for the Strategic4 Index), which are reapplied every year in January based on their predetermined selection criteria. All indexes are unmanaged and not available for direct investment. The payment of dividends is not reflected in the index return. Dow Jones and the Dow Jones branded indexes identified herein are trade and/or service marks of CME Group Index Services LLC ( CME Indexed ), its affiliates, and/or licensors, as the case may be, and have been licensed for use by Jackson National Life Insurance Company. The product(s) referenced is/are not sponsored, endorsed, sold or promoted by CME Indexes, its affiliates, and/or licensors, or their respective affiliates, and such parties make no representations or warranties, express or implied, regarding the advisability of trading in the product(s). American Stock Exchange, Dow Jones Industrial Average SM, Financial Times, Hang Seng Index, NASDAQ, New York Stock Exchange and NYSE are trademarks of their respective owners. These trademarks are not affiliated with Jackson National Life Insurance Company and the entities represented by these trademarks do not sponsor, endorse, sell or promote this product, nor do they make any representation regarding the advisability of purchasing this product. Strategic4 Index is not sponsored, endorsed, sold or promoted by S&P or its third-party licensors. Neither S&P no its third-party licensors make any representation regarding the advisability of purchasing Jackson AscenderPlus Select with Strategic4 Index. S&P and its third party licensors do not take the needs of Jackson or the owners of Jackson AscenderPlus Select with Strategic4 Index into consideration when preparing or providing its Services. Individuals should ultimately rely on their own judgement and/or the judgement of a financial advisor when making decisions. S&P AND ITS THIRD-PARTY LICENSORS DISCLAIM ANY AND ALL EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE SERVICES AND ITS USE BY LICENSEE IN CONNECTION WITH STRATEGIC4 INDEX, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. Neither S&P nor its third-party licensors guarantee the accuracy, adequacy, completeness or availability of any information provided by S&P to Jackson in connection with the development, marketing or promotion of Jackson AscenderPlus Select with Strategic4 Index nor are shall they be responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. In no event shall S&P or its third-party licensors be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or profit and opportunity costs) in connection with Jackson AscenderPlus Select with Strategic4 Index. Guarantees are backed by the claims-paying ability of Jackson National Life Insurance Company. Not for use in Iowa. JMI /15 JMI /15