A registered index-linked annuity offers clients interest-crediting options tied to a market index for pursuing growth while also providing a level of protection against loss.
Pacific Protective Growth
A Registered Index-Linked Annuity
Pacific Protective Growth Can Provide Clients:
Growth
Index-linked options can help grow the investment based on the performance of indexes that are combined with crediting strategies for determining interest crediting.
A Fixed Account option also is available that grows at a fixed rate of interest set by Pacific Life. Interest is credited daily over a one-year period.
The power of tax deferral works to potentially help grow the investment faster because taxes are not due until a withdrawal is taken.
Protection
Depending on the crediting options selected, clients can choose levels of protection, which apply at the end of a term, to help cover a portion of index losses during market downturns.
- A buffer reduces the potential loss during a term by a specific percentage.
- A floor sets the maximum amount a client can lose during a term.
In a steep index loss situation, the risk of substantial losses to the account value is higher on a buffer than a floor where the rates are identical.
Income
Income Guard,1 an optional benefit:
- Helps clients grow future retirement income through annual deferral credits and automatic resets that can increase the payment base.
- Locks in steady income clients can count on for life, even if the contract value goes to zero.
- Creates flexibility through an Income Rollover feature.
Wealth Transfer
Return-of-Purchase-Payments Death Benefit is included for clients up to age 80 at issue (based on the age of the oldest owner or annuitant). This locks in a minimum2 amount that can be passed down to the next generation or to a charity.
- For clients ages 81–85 at issue, the standard death benefit is the contract value.
- Clients ages 81–85 can purchase the return-of-purchase-payments death benefit for an additional cost of 0.30%.
1Clients must adhere to the parameters of the Income Guard benefit. Early withdrawals will reduce the protected payment base and the amount clients can withdraw under the benefit each year. Excess withdrawals will reduce and possibly terminate the benefits provided by Income Guard.
2Return of purchase payments amount is adjusted for withdrawals.
Key Details
For complete product details, view the Pacific Protective Growth Fact Sheet →
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Purchase Payment
Qualified and Nonqualified
$25,000
For aggregate purchase payments totaling more than $1 million, contact Pacific Life for approval.
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Charges & Fees
No explicit fees to the client1 (withdrawal charges may apply).
1Explicit fees are generally base contract fees related to administration and mortality & expense risk. These fees are not charged on the product but instead are factored into crediting strategy rates. Other expenses and adjustments may apply, such as withdrawal charge, market value adjustment, and interim value adjustment.
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Access to Money
Contract Year |
Charge per |
|---|---|
| 1 | 7% |
| 2 | 7% |
| 3 | 6% |
| 4 | 5% |
| 5 | 4% |
| 6 | 3% |
Rates & Resources
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- A specific client scenario.
- Getting appointed.
- Running an illustration or using the Pacific Protective Growth calculator (if nonappointed).
- Any other questions you might have.
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Use our interactive calculator to demonstrate how Pacific Protective Growth may be able to help clients reach their financial goals.
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24-591
RLQ2062-1224
IMPORTANT DISCLOSURES
Annuities are long-term contracts designed for retirement. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal income tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value and the value of the death benefit, and also may reduce the value of any optional benefits.
An investment in a crediting strategy is subject to risks, including the possible loss of all or a significant portion of your principal investment and any credited contract earnings. This loss could be greater if you take a withdrawal or surrender your contract due to the imposition of withdrawal charges, a market value adjustment, if applicable, and possible negative tax consequences.
The Income Guard optional benefit is available for an additional cost.
This material must be preceded or accompanied by the product prospectus, which contains information about the contract’s features, risks, limitations, charges, and expenses. Investors should read the prospectus, which is available by visiting PacificLife.com/Prospectuses, and consider its information carefully before investing.
On the Fixed Account option, the initial rate is declared at contract issue and guaranteed for one year. A renewal interest rate will be declared on each contract anniversary. The renewal interest rate will never be lower than the minimum guaranteed interest rate stated in the contract. Pacific Life determines, at its discretion, declared and renewal interest rates in excess of the minimum guaranteed in the contract.
Under current law, a nonqualified annuity that is owned by an individual is generally entitled to tax deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax deferred. Therefore, a deferred annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These features include lifetime income and death benefit options.
Insurance product and rider guarantees, including optional benefits and any fixed crediting rates or annuity payout rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. They are not backed by the independent third party from which this annuity is purchased, including the broker/dealer, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Pacific Life Insurance Company is licensed to issue insurance products in all states except New York.
Securities are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company. Product/material availability and features may vary by state.
Contract Form Series: 10-1900
Rider Form Series: 20-1925, 20-1132