Settlement Secured: Jackson Perspective L-Series Annuity & The “Guaranteed” Death Benefit Illusion

The Securities Lawyers at Halling & Cayo, S.C. are pleased to announce the successful settlement of a FINRA arbitration claim involving the sale of a Jackson Perspective L Series Fixed & Variable Annuity. The claim, filed on behalf of a retired investor, alleged that the financial advisor made material misrepresentations regarding the annuity’s death benefit and failed to disclose the high costs associated with the “L-Series” product.

If you were sold a Jackson Perspective L Series Annuity or were told that your annuity’s death benefit was “guaranteed” regardless of withdrawals, you may have a claim for recovery. Contact The Securities Lawyers today for a free consultation.

The Allegations: “Guaranteed” Death Benefits That Weren’t

The core of this dispute centered on the assurances given to the investor regarding the safety of her principal for her heirs. According to the Statement of Claim, the financial advisor represented that the premiums paid into the annuity would be maintained as a “guaranteed death benefit”.

Specifically, the investor alleged she was told that this death benefit was secure even if she took withdrawals from the account to supplement her retirement income. Relying on these promises, the investor purchased the annuity, believing she could access liquidity while preserving a legacy for her beneficiaries.

However, the reality of the product was starkly different. As the investor began taking distributions, she discovered that the withdrawals were reducing the death benefit dollar-for-dollar, essentially depleting the “guarantee” she thought she had secured. The investor alleged that this critical feature—that withdrawals would erode the death benefit—was never properly disclosed at the point of sale.

The Jackson L-Series Annuity: High Fees and Short Surrender Periods

The case also highlighted issues specific to the Jackson Perspective L Series Annuity. “L-Series” annuities are often marketed for their shorter surrender periods (typically 4 years) compared to standard B-share annuities (typically 7 years). However, this liquidity often comes at a steep price.

In this case, the investor alleged she was charged a mortality and expense fee of 1.45% annually, in addition to administrative charges and substantial fees for the “Guaranteed Minimum Withdrawal Benefit” (GMWB) rider. The claim argued that these excessive internal costs severely hampered the growth of the investment, making it virtually impossible for the account to generate a net return comparable to a standard market-weighted portfolio.

The Statement of Claim asserted that the recommendation to purchase such a costly product was unsuitable for a retiree with these specific liquidity needs and investment objectives.

The Outcome: Settlement Secured

After filing the claim and initiating FINRA arbitration proceedings, The Securities Lawyers at Halling & Cayo, S.C. were able to secure a settlement for the investor. While the specific terms of the settlement and the identity of the brokerage firm remain confidential, the resolution allowed the investor to recover a portion of the damages sustained from the alleged unsuitability and misrepresentation.

What Investors Should Know About Annuity Misrepresentations

Variable annuities are complex insurance products that are frequently misunderstood by investors—and sometimes misrepresented by advisors.

• Death Benefits are Rarely “Free”: Guarantees often come with high annual rider fees (often exceeding 1% on top of other fees).
• Withdrawals Can destroy Guarantees: Many GMWB or death benefit riders have strict withdrawal limits. Exceeding these limits, or sometimes simply taking any withdrawal, can reduce your death benefit significantly.
• “L-Series” Means Higher Costs: If you own an L-Series annuity, you are likely paying higher annual fees in exchange for a shorter surrender period. If you plan to hold the investment long-term, these extra fees can eat away at your returns unnecessarily.

Recovering Investment Losses

Brokerage firms have a legal duty to recommend only suitable investments and to accurately disclose all material facts about a product, including its risks and fees. When they fail to do so, investors have the right to seek recovery through FINRA arbitration.

If you have suffered losses in a Jackson Perspective L Series Annuity or believe your financial advisor misrepresented the terms of your death benefit, contact The Securities Lawyers at Halling & Cayo, S.C. today. We offer a free, no-obligation consultation to review your portfolio and discuss your potential legal claims.

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