An Expert Opinion
Last year, Jefferson National Life Insurance Co. in Dallas introduced a variable annuity that imposes no commissions or surrender fees, and charges a flat insurance fee of $20 a month regardless of the annuity's size. By comparison, the average variable annuity charges an insurance fee of about 1.38% according to investment researcher Morningstar, Inc. On a $100,000 contract, that is the difference between paying $240 a year or $1,380.—Wall Street Journal, May 15, 2006.
Monument Advisor. How can an idea this sharp be so flat?
Say hello to the first variable annuity with a flat insurance fee. That means it doesn't increase as your account grows. $20 a month.* $240 a year. Guaranteed, Forever.1
Like to see how much bigger and faster your retirement assets grow when they're not bogged down by high fees and ongoing taxes? Easy. Put Monument Advisor under the microscope. Here's what jumps out at you:
- NO hidden fees. Just one easy-to-grasp flat insurance fee of $20 per month,* regardless of how much you invest—or how much your annuity grows.2 And, this low fee is guaranteed to stay the same forever.
- NO other insurance charges. No asset-based insurance charges. No upfront sales charges. No surrender charges.3 All you pay are the investment management fees that apply to the underlying fund portfolio.
- NO sales commission paid. No sales commissions means that advisors can recommend this product without the conflict of interest associated with most commissioned product sales.
- UNPARALLELED number of investment options. Just think, over 200+ funds from more than 20+ top, independent money managers, covering all asset classes.
- GREATER tax-deferred growth potential. It stands to reason. Assets can grow faster when fees are low and taxes are deferred.
- BEST IN CLASS online investing platform. This lets you customize your asset allocation and manage it smoothly and confidently over time.
Hypothetical Cumulative Fee Comparison: Monument Advisor vs. Typical Annuities. The typical annuity insurance fee is 1.35%.4 Asset size at year 0 is $250K. Assumed hypothetical annual growth rate for this illustration is 8%. This is purely hypothetical and does not reflect the growth rate of any annuity. Monument Advisor does not provide living benefits, death benefits or additional riders.
Compare your current variable annuity fees with Monument Advisor and see how much you may save with our handy Annuity Comparison Calculator.
Here's a tip: Even if you already own a variable annuity, check to see whether you will benefit from transferring your variable annuity assets to Monument Advisor—tax free. (Before exchanging your annuity—review your existing contract to determine if any penalties, surrender charges or loss of benefits will apply.)
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For a $25,000 contract, Monument Advisor's flat insurance fee of $20 per month is lower than 91% of all other variable annuity insurance charges. For a $100,000 contract, the $20 flat insurance fee is the industry's absolute lowest variable annuity insurance charge. Source: MORNINGSTAR, 12/31/2005.
* Jefferson National's Monument Advisor has a $20 flat insurance fee on more than 97% of our underlying funds. Certain funds also have a transaction fee ranging from 19.99 to 49.99 per transaction, depending on the number of transactions per year. See the prospectus for details. Like other variable annuities, the customer pays fees of the underlying funds selected plus the fees of any advisor hired.
1 Before switching to Monument Advisor, please review the policy and prospectus to identify any penalties, surrender charges or loss of benefits that may pertain to your existing variable annuity contract. Monument Advisor does not provide enhanced living benefits, withdrawal benefits, or guaranteed death benefits. Variable annuities involve risk, including the possible loss of principal. The value of the variable accounts will fluctuate, and when redeemed, your contract may be worth more or less than the original investment. Until distributed, the Death Benefit amount in the investment portfolios is subject to investment risk. Please consult with a tax advisor for any potential tax consequences for switching from one variable annuity to another. Please note this is not an endorsement to switch from your current annuity to the Monument Advisor variable annuity. You should review your particular situation to determine which variable annuity is appropriate for your needs.
2 Minimum deposit of $25,000. Deposits in excess of $10 million are subject to company approval.
3 The IRS may charge a 10% tax penalty on any withdrawal made before age 59½.
4 Source: Morningstar (12/06).
An investor should carefully consider the investment objectives, risks, charges and expenses of the investment before investing or sending money. For a prospectus containing this and additional information, please contact your financial professional. Read it carefully before investing. The summary of product features is not intended to be all-inclusive. Restrictions may apply. The contracts have exclusions and limitations, and may not be available in all states or at all times.
Variable annuities are investments subject to market fluctuation and risk, including possible loss of principal. Your units, when you make a withdrawal or surrender, may be worth more or less than your original investment.
Variable annuities are long-term investments to help you meet retirement and other long-range goals. Withdrawal of tax-deferred accumulations are subject to ordinary income tax. Withdrawals made prior to age 59 ½ may incur a 10% IRS tax penalty. Jefferson National does not offer tax advice. Annuities are not deposits or obligations of, or guaranteed by any bank, nor are they FDIC insured.
Monument Advisor is issued by Jefferson National Life Insurance Company (Dallas, TX) and distributed by Jefferson National Securities Corporation, FINRA member. Policy series JNL-2300-1, JNL-2300-2.
Form #: JEF-index-20080513