Consider Pacific Index Advisory for pre-retirees and retirees who:
- Want a conservative investment approach.
- Are interested in growth potential without market risk.
Client Profiles
Highlights
Pacific Index Advisory is not available in New York.
Pacific Index Advisory combines the guarantees of a fixed annuity with growth potential linked to the performance of market-based indexes. It’s not a security, and money is not directly invested in the market. It offers:
- No loss of principal due to market performance—even during market downturns.
- Earned interest that is locked in as a result of positive index performance.
- Clients guaranteed rates until the end of the chosen term.
Withdrawal Charges and Fees
The initial guaranteed periods correspond to the withdrawal charge schedule. Withdrawal charges apply only during the initial guaranteed period when the amounts taken are more than those discussed in the "Withdrawals without Charge" section below.
5 Years
| Current Year of the Selected Guaranteed Period | 1 | 2 | 3 | 4 | 5 |
| Charge per Withdrawal | 7% | 6% | 5% | 4% | 3% |
7 Years
| Current Year of the Selected Guaranteed Period | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
| Charge per Withdrawal | 7% | 6% | 5% | 4% | 3% | 2% | 1% |
Market Value Adjustments (MVAs)
If either of the following occur during the withdrawal charge period, an MVA may apply (in addition to any applicable withdrawal charges):
- Withdrawals in excess of 10% of the prior anniversary’s contract value (10% of purchase payments in the first year).
- Annuitization of the contract value.
For more information about the MVA formula, please refer to the MVA endorsement that accompanies the contract. View daily index yields for the J.P. Morgan 10-Year U.S. Liquid Index here.
There is no MVA assessed on withdrawals made after the withdrawal charge period has expired. Please note, the MVA does not apply in CA.
Withdrawals without Charge
Withdrawals are permitted 30 days after contract issue. In the first contract year, the maximum that may be withdrawn without a charge is 10% of the total purchase payments. For each subsequent contract year, the maximum is 10% of the contract value as of the prior contract anniversary.
In addition, withdrawal charges and the MVA will be waived for:
- Required minimum distribution (RMD) withdrawals (only if calculated by Pacific Life).
- Withdrawals after the first contract year if diagnosed with a terminal illness (life expectancy of 12 months or fewer). Not available in CA.
- Withdrawals after 90 days of contract issue if confined to an accredited nursing home for 30 days or more, as long as the nursing-home confinement began after the contract was issued (except in CA and MA).
- Death benefit proceeds.
- Annuity income payments. (Available after the first contract year; an MVA may apply.)
Protected Lifetime Income
After the first contract year, you may elect to receive income payments that are guarnateed to last for life or a certain period.1 There are a variety of options available, including options that will guarantee income for two lives and options that will continue to make payments to a beneficiary after the death of the annuitant(s). Please see your financial professional and the contract for more information on electing to receive annuity income payments and the available annuity income options
Note: For Index-Linked Options, no interest is earned or credited on amounts withdrawn prior to the end of an index term.
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.
Initial Guaranteed Period
The initial guaranteed period determines:
- The interest rate that will be earned on the Fixed Account Option and potentially earned with the Performance-Triggered Index Option, as well as the time period the rates are guaranteed.
- The cap applied to the Point-to-Point Option and the time period the cap is guaranteed. A cap is the maximum amount of interest that can be earned for the index term.
- When clients will have access to the contract value without incurring a withdrawal charge or market value adjustment (MVA).
Fixed Account Option
- Each Fixed Account Option term is one contract year.
- Interest is credited daily.
- The initial rate is guaranteed for the length of the initial guaranteed period.
- After the initial guaranteed period expires, renewal rates are declared annually and will never be lower than the minimum guaranteed interest rate stated in the contract.
Index-Linked Options
Pacific Index Advisory offers a variety of Index-Linked Options:
- S&P 500® Index: 1-Year Point-to-Point Option (with cap)
- S&P 500® Index: 1-Year Performance-Triggered Index Option
- MSCI EAFE® (Europe, Australasia, and the Far East): 1-Year Point-to-Point Option (with cap)
- MSCI EAFE® (Europe, Australasia, and the Far East): 1-Year Performance-Triggered Index Option
No interest will be earned or credited to index-linked options on amounts withdrawn prior to the end of an index term.
Transfers
- Transfers are effective on a contract anniversary but can be requested up to 30 days after the contract anniversary.
- Clients may transfer the Fixed Account Option value and expired index terms to any available Index-Linked Option or the Fixed Account Option.
Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
Guaranteed rates and caps will never be set below the minimum or above the maximum stated in the contract. Pacific Life determines, at its discretion, guaranteed rates and caps in excess of the minimum or above the maximum guaranteed in the contract.
The indexes are not available for direct investment, and index performance does not include the reinvestment of dividends.
If death occurs before annuity income payments begin, a death benefit equal to the greater of the contract value or the Guaranteed Minimum Surrender Value is paid upon the death of the first owner or the last annuitant. Pro rata index-linked interest is credited to the contract value on the Notice Date (the date Pacific Life receives the death benefit claim in good order).
Premium: Limited premium. 1035 exchange/transfer requests must be submitted with the application and the funds received within 60 days after contract issue.
Please note: Additional cash purchase payments up to $100,000 are permitted within the first 60 days of contract issue. Interest will be credited proportionately based on the date the additional purchase payment is received and the index return from the date the additional purchase payment is received to the end of the index term. This period may be less than the time frames listed above.
Minimum Purchase Payment: $25,000 (qualified and nonqualified).
Maximum Purchase Payment: $1 million; total purchase payments greater than $1 million require Pacific Life home-office approval in advance.
Maximum Annuitant/Owner Issue Age: 85
Maximum Annuitization Age: 95
Fixed Annuity Rates
Optional Benefit
Pacific Index Advisory offers an optional death benefit that can help protect and enhance the legacy your clients leave to their beneficiaries.
Interest Enhanced Death Benefit (Not Available in CA)
Interest Enhanced Death Benefit can enhance the legacy your clients leave to loved ones by providing guaranteed growth of the Death Benefit Base, no matter how the market performs. The Death Benefit Base is guaranteed to grow by the amount of interest credited to the contract, plus an additional 2% roll-up, compounded annually, for 20 years, until age 85, or in some states, up to a maximum roll-up amount of 250% of total purchase payments (adjusted proportionately for withdrawals), whichever is earlier.
Fee: 0.40% of the Death Benefit Base deducted from the contract value annually.
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Annuities are long-term contracts designed for retirement.
Pacific Index Advisory is named “Limited Premium Deferred Fixed Annuity Contract with Index-Linked Interest Options in the contract. In some states, Interest Enhanced Death Benefit is named “Optional Death Benefit Rider” in the contract rider.
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.
Fixed indexed annuities are not securities and do not participate directly in the stock market or any index, so they are not investments.
Pacific Index Advisory guarantees rates and caps for the entire initial guaranteed period. It is important to note that indexed annuity contracts commonly allow the insurance company to change the cap rates on a periodic—such as annual—basis. Such changes could adversely affect your return. No single index crediting method will provide the highest interest credit in all market scenarios. The guaranteed minimum cap rates are established when the annuity is purchased and disclosed in the annuity contract. Read your contract carefully to determine what changes the insurance company may make to these features.
The Product and its MSCI EAFE® Index-Linked Options referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Products or any index on which such Products are based. The Policy Contract contains a more detailed description of the limited relationship MSCI has with Pacific Life Insurance Company and any related products.
The S&P 500® index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Pacific Life Insurance Company. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx®, and CDX® are trademarks of S&P Global, Inc., or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pacific Life Insurance Company. Pacific Life’s product is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® index.
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.
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 and do not protect the value of the variable investment options. They are not backed by the broker/dealer from which this annuity is purchased, 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.
The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
Contract Form Series: ICC17:30-1700
Rider Series: ICC17:20-1704, ICC15:20-1500, ICC17:20-1707, 20-1500ID, 20-1500
Endorsements: ICC16:15-1403
State variations to contract form series, rider series, and endorsements may apply.
For financial professional use only. Not for use with the public.
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency
FAQ1916RIA-0424H