Pacific Life Continues Focus on Simplification for Variable Annuity Clients
Newport Beach, Calif. (June 15, 2010)-Pacific Life is continuing to define a commitment to simplified retirement strategies by announcing the launch of CoreIncome Advantage5, an optional benefit available with its variable annuities. Variable annuities are long-term investments designed for retirement. They are the only investment that provides lifetime income options, a guaranteed death benefit to protect beneficiaries, and the ability to transfer among investment options tax-free.
CoreIncome Advantage5 allows clients to withdraw up to 5% of the protected amount annually for life as long as the first withdrawal is taken at or after age 65. Last year, Pacific Life introduced its first lower-cost, simplified optional benefit, CoreIncome Advantage, a 4% withdrawal benefit.
"We believe in products people can understand," says Christine Tucker, vice president of marketing, Retirement Solutions Division. "We have been able to offer straightforward and lower-cost income strategies without sacrificing flexibility and choice in investment options. We can help achieve an overall lower cost to the annuity buyer, which results in potential greater long-term value. With our unique consultative wholesaling model, we are better positioned to bring a deeper depth and breadth of retirement strategies and product solutions to a financial professional's business."
CoreIncome Advantage5 is currently available for an additional charge of 0.60% of the protected amount, deducted quarterly (0.15%). CoreIncome Advantage is currently available for an additional charge of 0.30% of the protected amount, deducted quarterly (0.075%). Both require clients' contracts to be and remain 100% allocated according to the investment allocation requirements which include a broadly diversified selection of asset allocation portfolios and custom model solutions. After withdrawals begin, clients have the ability to lock in market gains through automatic annual step-ups. Clients will be subject to the charge in effect at the time of the step-up, with a maximum of 1.20% for CoreIncome Advantage5 and 1.00% for CoreIncome Advantage.
About Pacific Life
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life also counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit the About Pacific Life section of this web site.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of April 2010 is compiled by Pacific Life using the 2010 FORTUNE 500® list.
You should carefully consider a variable annuity's risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment objectives of the underlying investment options. This and other information about Pacific Life are provided in the product and the underlying fund prospectuses. These prospectuses are available from your registered representative or by calling (800) 722-4448. Read them carefully before investing.
The value of the variable investment options will fluctuate and, when redeemed, may be worth more or less than the original cost. Withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, a 3.8% tax on investment income may apply beginning in 2013. If withdrawals and other distributions are taken prior to age 59½, a 10% federal tax penalty may apply. A withdrawal charge also may apply. Withdrawals will reduce the value of the death benefit and any optional benefits.
IRAs and qualified plans-such as 401(k)s and 403(b)s-are already tax deferred. Therefore, an annuity should be used only to fund an IRA or qualified plan to benefit from the annuity's features other than tax deferral. These include lifetime income, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges.
Optional benefit withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. CoreIncome Advantage is named "Core Withdrawal Benefit Rider" in the contract rider. CoreIncome Advantage5 is named "Core Withdrawal Benefit II Rider" in the contract rider.
Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each company is solely responsible for the financial obligations accruing under the products it issues. Insurance product and rider guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not protect the value of the variable investment options.
Variable annuities issued by Pacific Life are available through licensed third-party broker/dealers and distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and are available through licensed third-party broker/dealers.