Pacific Life Launches the Second in Its Core Series of Variable Annuity Optional Benefits
Newport Beach, CA (February 16, 2010)-Pacific Life has added a new guaranteed minimum withdrawal benefit for life to its suite of variable annuity optional benefits. CoreProtect Advantage is designed for those clients that want to protect their future retirement income.
When purchased with a Pacific Life variable annuity, clients can withdraw up to 5% annually of the protected amount for life as long as the first withdrawal is taken at or after age 65. Prior to the earlier of 10 years or the first withdrawal, the protected amount can increase through a 5% annual credit or a highest anniversary value feature. Although the 5% credit is not added to the contract value, it can help increase the amount available for future withdrawals.
"In developing a retirement strategy, clients may need to position a portion of their money to protect potential growth and provide guaranteed income, while managing expenses," says Christine Tucker, vice president of marketing, Annuities & Mutual Funds Division. "If a client's retirement goals are within the next 10 years, CoreProtect Advantage provides the opportunity to grow the protected amount while waiting to take withdrawals."
Last year, Pacific Life introduced CoreIncome Advantage, designed to provide a basic level of guaranteed retirement income at a lower cost. Now, CoreProtect Advantage enhances protection while still at a reasonable cost. This new addition is part of the company's plan to offer a suite of cost-efficient optional benefits.
CoreProtect Advantage is currently available for an additional charge of 1.05% of the protected amount, deducted quarterly (0.2625%) and requires clients' contracts to be and remain 100% allocated according to the investment allocation requirements. 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 1.50%.
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 2009 is compiled by Pacific Life using the 2009 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.
Variable annuities are long-term investments designed for retirement. 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. 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.
CoreProtect Advantage withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. CoreProtect Advantage is named "Guaranteed Withdrawal Benefit IV Rider" in the contract rider.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. 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. 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, and are available through licensed third-party broker/dealers.