Income Growth. Income Certainty. Fee Friendly.
Clients can ramp up income potential during the approach to retirement and enjoy consistent protected lifetime income payments when they get there.
Portfolio Income Protector
Income Growth. Income Certainty. Fee Friendly.
Client Profiles
Consider Portfolio Income Protector for pre-retirees and retirees who:
- Need guaranteed growth for income purposes.
- Are concerned about outliving their assets.
- Require a consistent amount of supplemental, protected lifetime income.
Highlights
If you determine that your client will have an income gap in retirement, Portfolio Income Protector is an optional living benefit available with Pacific Advisory Variable Annuity that’s designed to help clients increase future income in the years leading up to retirement, in all market conditions, followed by a lifetime of protected income when they're ready.
Income Growth
On each contract anniversary, the protected payment base, which is the value from which income is calculated, can grow by the greater of the following:
- If markets perform well, automatic resets lock in gains for income purposes. Resets continue throughout the life of the contract.
- If markets are underperforming and no withdrawals are taken, a 5% simple-interest credit is added to the protected payment base for up to 10 years.
- After a reset occurs, any future annual credits are calculated on the higher protected payment base.
Income Certainty
Clients can count on a steady amount of protected lifetime income, beginning as early as age 59½.
Fee-Friendly Structure
You have the ability to manage and bill on your clients' annuities without impacting the features and benefits of Portfolio Income Protector.
The annual charge for Portfolio Income Protector is a percentage of the protected payment base (deducted quarterly).
Single Life Option: 1.25%
Joint Life Option: 1.35%
Charges are set at contract issue and will not change while the optional benefit is in effect.
Lifetime withdrawal percentages are based on the age clients elect to begin withdrawals1 or the first withdrawal after a reset. Withdrawals for advisory fees do not affect lifetime withdrawal percentages.
The below lifetime withdrawal percentages are applicable for all states except New York. For New York lifetime withdrawal percentages, please reach out to your Pacific Life managing director or review the Pacific Advisory Variable Annuity prospectus.
| Lifetime Withdrawal Percentages | ||
| Age at First Withdrawal (or first withdrawal after a reset) |
Single Life | Joint Life |
| 59½–64 | 5.25% | 4.75% |
| 65–74 | 5.50% | 5.00% |
| 75+ | 5.75% | 5.25% |
Joint Life lifetime withdrawal percentages are based on the younger spouse’s age.
Withdrawals for Advisory Fees
Withdrawals for advisory fees do not stop the annual credit and will not affect the protected payment base for income purposes. Advisory fee withdrawals are limited to 1.50% of the annuity contract's cash value for the calendar year. Advisory fee withdrawals greater than 1.50% are not allowed.
Early Withdrawals
Prior to age 59½ (based on the younger spouse’s age for Joint Life), any withdrawal amount will reduce the protected payment base by either the amount of the withdrawal or on a proportionate basis, whichever results in the lower protected payment base. The withdrawal also may be subject to an additional 10% federal tax. If an early withdrawal reduces the account value2 to zero, the benefit will terminate, and clients will not receive the guaranteed lifetime income amount.
Excess Withdrawals
The protected payment base receives pro rata treatment. If a withdrawal exceeds the protected payment amount, the protected payment base will be reduced on a proportionate basis for the amount in excess of the protected payment amount. If a withdrawal exceeds the protected payment amount and reduces the account value to zero, the optional benefit will terminate.
RMD Friendly
If required minimum distributions (RMDs)3 are greater than the optional benefit percentage limits, Pacific Life will honor the RMD withdrawal, and future income benefits and the protected payment base will not reduce.
1Any withdrawals will reduce your account value. Optional benefit withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. Payments received prior to converting the contract to annuity payouts are treated as withdrawals and may be subject to withdrawal charges, ordinary income taxes, a possible 3.8% federal tax on net investment income for nonqualified money, and if prior to age 59½, an additional 10% federal tax. At the maximum annuity date, upon choosing a Life Only fixed annuity payout option (or Joint Life and Survivor Life Only fixed annuity payout option), you will receive the greater of a payment based on your account value or the protected payment amount as an annuity payment.
2The account value is the annuity contract value.
3If RMD amounts are not calculated and withdrawn under the Pacific Life RMD program and the withdrawal amounts are greater than the optional benefit percentage limits, future income benefits and the protected payment base may be reduced. If there is any change to the Internal Revenue Code or Treasury regulations related to RMDs, Pacific Life reserves the right to modify or eliminate the treatment of RMD withdrawals, but only to the extent necessary to comply with the change to the rules. The annual credits end if a withdrawal is taken, including an RMD withdrawal.
Maximum Issue Age: 85
Investment Options
Choose from a diverse set of benefit-eligible investment options. Please note: The entire account value must be allocated among the benefit-eligible investment options or the benefit will terminate.
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All guarantees, including optional benefits, are subject to the claims-paying ability and financial strength of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.
Pacific Life, its affiliates, their 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.
Investors should carefully consider a variable annuity’s risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment goals of the underlying investment options. This and other information about Pacific Life variable annuities are provided in the product and underlying fund prospectuses. These prospectuses should be read carefully before investing.
Annuity withdrawals and other distributions of taxable amounts will be subject to ordinary income tax. Optional benefit withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. 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. Withdrawals will reduce the account value and also may reduce the value of any optional benefits.
For newly issued contracts, the annual charge for Portfolio Income Protector may be subject to a maximum of 2.50% Single Life Option and 2.75% Joint Life Option.
Portfolio Income Protector is named “Guaranteed Withdrawal Benefit XXV Rider – Single Life” and “Guaranteed Withdrawal Benefit XXV Rider – Joint Life” in the contract rider. Only one optional guaranteed minimum withdrawal benefit (GMWB) can be purchased on a variable annuity.
Insurance products are issued by Pacific Life Insurance Company in all states except New York. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Annuity products are not FDIC insured, may lose value, and are not guaranteed by any bank.
Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company. Product availability and features may vary by state.
The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
Contract Form Series: ICC20:10-1040
Rider Series: ICC21:20-1050, ICC21:20-1051
State variations to contract form series and rider series may apply.
For financial professional use only. Not for use with the public.
VAP2141RIA-0923H