Income Guard

Protects and Grows Income

Income Guard, an optional benefit available with a Pacific Protective Growth registered index-linked annuity, is designed for clients who want a steady stream of lifetime income and also need flexibility. It offers annual deferral credit for up to 10 years that can increase the total withdrawal percentage and automatic resets that increase the protected payment base. Income Guard also includes an income rollover feature allowing clients to carry over unused amounts into the next year's withdrawal, as well as the ability to change their initial income choice (Joint Life or Single Life) before starting withdrawals under the benefit.

Consider This for Clients Who:

  • Want to grow future income by waiting to take it for up to 10 years.

  • Value an opportunity for additional income increases through automatic resets if the contract value is up as of a contract annniversary.

  • Want the flexibility to change the income choice (Single Life or Joint Life) if their situations change.

  • May not need all their income every year and like having the ability to roll over unused amounts.

Features

Electing Income Guard and Issue Ages

  • Income Guard can be elected only when Pacific Protective Growth is purchased.

  • Issue ages are 45 to 85.

 

How Income Can Grow

  • Deferral credits are added to the withdrawal percentage each year that clients have not yet started to take income under the benefit, for up to 10 years. 

  • Automatic annual resets occur when the contract value is higher than the protected payment base on any contract anniversary. These resets apply for the life of the annuity contract.

 

Protected Lifetime Income

  • Clients can start lifetime income three years after they elect Income Guard or at age 59½, whichever comes later.

  • Clients may take withdrawals at a percentage determined by the age at which they purchased Pacific Protective Growth with Income Guard and whether they selected Single Life or Joint Life.

 

Withdrawal Percentages and Deferral Credits

To view our current withdrawal and deferral credit rates, please refer to the Income Guard fact sheet.

 

Income Rollover Feature

Once clients begin taking lifetime income, the income rollover feature allows them to roll over unused amounts from one contract year into the next. The income rollover amount will never be more than the protected payment amount.

 

Available Interest-Crediting Options

Eligible interest-crediting options include all the 1-year crediting strategies and the 1-year Fixed Account option. If Income Guard is elected, initial and renewal crediting strategy rates will typically be equal to the rates for those who do not elect Income Guard. However, the initial and renewal crediting strategy rates may be lower.

 

Excess and Early Withdrawals

All withdrawals under Income Guard reduce the contract value in the same manner as any other withdrawal. Excess withdrawals (those that exceed the maximum annual withdrawal limits) may reduce the benefit by an amount greater than the value withdrawn. Early withdrawals (those that occur before income under the benefit begins) may reduce the benefits provided by Income Guard, perhaps significantly, and/or could terminate the benefit. Withdrawals under Income Guard also may reduce the benefits provided by the death benefit. Additionally, withdrawals taken under Income Guard from the index-linked options will be subject to an interim value calculation if taken before the end of a term. If clients take a withdrawal before age 59½ or a withdrawal that is greater than the annual withdrawal amount, this may result in adverse consequences such as tax penalties, a permanent reduction in Income Guard benefits, the failure to receive lifetime withdrawals under Income Guard, or termination of Income Guard.

Resources

Income Guard: More Income Can be Worth the Wait
Income Guard Fact Sheet
Income Guard Brochure
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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 also may apply 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.

A registered index-linked annuity is an insurance contract and is subject to investment risk; its value will fluctuate and loss of principal is possible.

Income Guard is available for an additional cost.

Not all products or optional benefits are available at all states or firms.

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.

The crediting strategy or protection level are not applied until the end of the term. Before the end of a term, if the contract is surrendered or annuitized, a withdrawal is taken, or if the death benefit is paid, the transaction will reduce the interim value of your investment in that crediting option and could result in the loss of principal and previously credited contract earnings. Such losses could be as high as 100%. The interim value is the amount in the crediting option that is available for transactions that occur during the term, including full surrenders, withdrawals, free withdrawal amounts, and pre-authorized withdrawals, optional charges, guaranteed withdrawal amounts under the guaranteed lifetime withdrawal benefit, death benefit payments, and annuitization. The interim value could be less than the investment in the crediting strategy option even if the index is performing positively.

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. Product/material availability and features may vary by state.

Securities are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company.

Contract Form Series: 10-1900

Rider Series: 20-1925

State variations to contract form series and rider series may apply.

Pacific Life, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.

Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.

Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. 

Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company. 

The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.

No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency

For financial professional use only. Not for use with the public.

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