Jackson National Extends Equity Indexing to CDs.Jackson National Life Jackson National Life Insurance is a U.S. life assurance company that is a subsidiary of the UK based insurer, Prudential Plc. Founded in 1961, Jackson is headquartered in Lansing, Michigan, and has over a thousand employees in the region. Insurance Co., Lansing, Mich., a major provider of equity-indexed annuities equity-indexed annuity A contract with an insurance company that promises periodic payments keyed in a specified manner to a stock market index. Unlike variable annuities, equity-indexed annuities specify a guaranteed minimum return that is typically 3%. , has applied the concept to a certificate of deposit offered by its wholly owned banking subsidiary, Jackson Federal Bank. The bank offers MarketPath, a certificate of deposit insured by the Federal Deposit Insurance Corp., that links its rate of return to the performance of the S&P 500 stock index. Terms of five, seven and nine years with a minimum deposit of $5,000 are available. If the index is higher at the end of the term, the depositor is rewarded with a percentage of the gain. If the index is lower, Jackson National returns the initial deposit. Nearly 2,000 financial representatives have signed up to offer the product, said D. Tad (Telephone Answering Device) An answering machine. Lowrey, the bank's chairman, president and chief executive officer. A drawback DRAWBACK, com. law. An allowance made by the government to merchants on the reexportation of certain imported goods liable to duties, which, in some cases, consists of the whole; in others, of a part of the duties which had been paid upon the importation. to the product is that owners may receive less than their original investment if they need the money before the CD's maturity. |
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