SUPPLEMENT TO PROSPECTUS DATED OCTOBER 16, 1995
FOR JACKSON NATIONAL SEPARATE ACCOUNT - I
THE PERSPECTIVE FIXED AND VARIABLE ANNUITY
ISSUED BY
JACKSON NATIONAL LIFE INSURANCE COMPANY
The following definitions replace those of "Annuitant", "Latest Annuity Date"
and "Owner" contained in the Definitions section on Page 4.
ANNUITANT. The natural person on whose life the annuity benefit for this
Contract is based.
LATEST ANNUITY DATE. The date on which the Owner attains age 90 under a
Non-Qualified Plan Contract or age 70 1/2 under a Qualified Plan Contract,
unless otherwise approved by the Company.
OWNER ("YOU," "YOUR"). The person or entity named in the application
who is entitled to exercise all rights and privileges under this Contract.
Usually, but not always, the Owner is also the Annuitant. The Owner is
responsible for taxes, regardless of who receives annuity benefits. IF JOINT
OWNERS ARE NAMED, THE JOINT OWNER MUST BE A SPOUSE. Joint Owners share
ownership in all respects.
On Page 15, the "Death of Annuitant", "Death of Owner" and "Amount of Death
Benefit" sections are deleted and the following is added:
<PAGE>
DEATH BENEFIT
DEATH OF CONTRACT OWNER BEFORE THE ANNUITY DATE: Upon Your death, or any
Joint Contract Owner, before the Annuity Date, the death benefit will be paid
to the Beneficiary(ies) designated by You. Upon the death of a Joint Contract
Owner, the surviving Joint Contract Owner, if any, will be treated as the
primary Beneficiary. Any other Beneficiary designation on record at the time
of death will be treated as a contingent Beneficiary.
DEATH BENEFIT AMOUNT BEFORE THE ANNUITY DATE: The standard death
benefit is equal to the greater of:
1. the Contract Value at the end of the Valuation Period during which
due proof of death and an election of the type of payment to the Beneficiary
is received by the Company, at the Home Office, or
2. the total Premiums paid prior to the death of the Owner, minus
the sum of:
a) the total withdrawals and any Withdrawal Charges assessed;
and
b) premium taxes incurred.
In addition, where permitted by state law, the Company will provide an
enhanced death benefit. The Enhanced Death Benefit is determined by (A)
re-computing the standard Death Benefit by accumulating all amounts under (2)
above annually at 5% (4% if the Owner was age 70 or older on the Issue Date)
to the date of death, and (B) paying the greater of the amount so determined
and the following amount, which is deemed to be $0 if the Owner dies prior to
the seventh Contract Year:
the Contract Value at the seventh Contract Year, plus any Premiums paid
since that time and prior to death, minus the sum of:
a) total withdrawals and any Withdrawal Charges assessed since
such seventh Contract Year; and
b) premium taxes incurred since the seventh Contract Year,
all accumulated annually at 5% (4% if the Owner was age 70 or older
on the Issue Date) to the date of death.
The enhanced death benefit shall never exceed 250% of all Premiums paid
to the contract, reduced by the amount of any withdrawals.
NOTE: The portion of the Mortality and Expense Risk Charge attributable
to the enhanced death benefit will be assessed against Separate Account
allocations pursuant to all Contracts issued, whether or not applicable state
laws permits the Contract to offer the enhanced death benefit.
DEATH BENEFIT OPTIONS BEFORE THE ANNUITY DATE: In the event of Your
death or any Joint Contract Owner before the Annuity Date, a Beneficiary
must request that the death benefit be paid under one of the Death Benefit
Options below. In addition, if the Beneficiary is the spouse of the Contract
<PAGE>
Owner, he or she may elect to continue the Contract at the then Contract
Value in his or her own name and exercise all the Contract Owner's rights under
the Contract. The following are the Death Benefit Options:
Option 1 - lump sum payment of the death benefit; or
Option 2 - the payment of the entire death benefit within 5 years of
the date of the death of the Contract Owner or any Joint
Contract Owner; or
Option 3 - payment of the death benefit under an Annuity Option over
the lifetime of the Beneficiary or over a period not
extending beyond the life expectancy of the Beneficiary
with distribution beginning within one year of the date
of Your death or any Joint Contract Owner.
Any portion of the death benefit not applied under Option 3 within one
year of the date of a Contract Owners' death, must be distributed within five
years of the date of death.
If a lump sum payment is requested, the amount will be paid within seven
(7) days of receipt of proof of death and the election, unless the Suspension
or Deferral of Payments Provision is in effect.
Payment to the Beneficiary, other than in a single sum, may only be
elected during the sixty-day period beginning with the date of receipt of
proof of death.
Payment to the Beneficiary, other than in a single sum, may only be
elected during the sixty-day period beginning with the date of receipt of
proof of death.
DEATH OF CONTRACT OWNER AFTER THE ANNUITY DATE: If you, or any Joint
Contract Owner, dies after the Annuity Date, and you are not an Annuitant, any
remaining payments under the Annuity Option elected will continue at least as
rapidly as under the method of distribution in effect at such Contract Owner's
death. Upon your death after the Annuity Date, the Beneficiary becomes the
Contract Owner.
DEATH OF ANNUITANT: Upon the death of an Annuitant, who is not a
Contract Owner, before the Annuity Date, you may designate a new Annuitant,
subject to our underwriting rules then in effect. If no designation is made
within 30 days of the death of the Annuitant, you will become the Annuitant.
If the Contract Owner is a non-natural person, the death of the Annuitant
will be treated as the death of the Contract Owner and a new Annuitant may not
be designated.
Upon the death of the Annuitant after the Annuity Date, the death benefit,
if any, will be as specified in the Annuity Option elected. Death benefits
will be paid at least as rapidly as under the method of distribution in effect
at the Annuitant's death.
<PAGE>
On Page 17, the fourth paragraph under "Separate Account Accumulation
Unit Value" is deleted and the following is added:
The Accumulation Unit Value of a Portfolio for any Valuation Period is
calculated by subtracting (2) from (1) and dividing the result by (3) where:
1) is the total value at the end of the given Valuation Period of the assets
attributable to the Accumulation Units of the Portfolio minus the total
liabilities;
2) is the cumulative unpaid charge for assumptions of Mortality and Expense
Risk Charge, and for Administration Charge; and
3) is the number of Accumulation Units outstanding at the end of the given
Valuation Period.
On Page 18, the first paragraph under the "Distribution of Contracts" section
is rewritten as follows:
DISTRIBUTION OF CONTRACTS
Contracts are sold by registered representatives of broker-dealers who
are licensed insurance agents of the Company, either individually or through
an incorporated insurance agency. Commissions may vary, but are not
anticipated to exceed 8.00% of any Premium (including any promotional and sales
incentives). Under certain circumstances, certain sellers of the Contracts
may be paid persistency incentives which will take into account, among other
things, the length of time Premiums have been held under a Contract, and
Contract Values. A persistency incentive is not anticipated to exceed 1.50%,
on an annual basis, of the Contract Values considered in connection with the
incentive. All such commissions and incentives are paid by the Company.
On Page 21, the "Administration" section is modified by the addition of
the following:
MARKET TIMING AND ASSET ALLOCATION SERVICES
Certain third parties offer market timing and asset allocation services
in connection with the Contracts. In certain situations, the Company will
honor transfer instructions from such third parties provided such market timing
and asset allocation services comply with the Company's administrative
systems, rules and procedures, which may be modified by the Company at any time.
PLEASE NOTE that fees and charges assessed for such market timing and asset
allocation services are separate and distinct from the Contract fees and
charges set forth herein. The Company neither recommends nor discourages such
market timing and asset allocation services.
On Page 24, the third paragraph under the "Advertising" section is modified by
the addition of the following:
Additionally, non-standardized total return may be for periods other than
those required to be presented or may otherwise differ from standardized total
return.
<PAGE>
Supplement dated January 1, 1996.
<PAGE>
