Enhanced Income Select 2
Enhanced Income Select 2 is an optional living benefit, available for an additional cost, with features that help increase future income leading up to retirement. The optional benefit also provides the certainty of annual income for life with an added rollover feature for flexibility.
Enhanced Income Select 2 is not available in New York.
Client Profiles
Consider Enhanced Income Select 2 for pre-retirees who:
- Would like to maximize the income they receive in retirement.
- Want to grow their retirement income while waiting up to 10 years to begin taking income.
- Need flexibility for when and how to take income.
Highlights
Enhanced Income Select 2 available with Pacific Odyssey® variable annuity has features that provide the flexibility to help clients maximize their income in retirement.
Annual Credit
- A 7% annual credit is added to the protected payment base for up to 10 years assuming, no withdrawals are taken.
- Automatic annual resets lock in market gains. After a reset, annual credits are based on the new protected payment base for the remainder of the 10 years or until the first withdrawal is taken.
Enhanced Income
Clients receive an enhanced amount of income, beginning as early as age 59½, if the contract value is greater than zero. Guaranteed lifetime income of 3.25% is available if the contract value goes to zero.
The annual charge for Enhanced Income Select 2 is an annual percentage of the protected payment base (deducted quarterly).
Single Life Option: 1.25%
Joint Life Option: 1.45%
The charge is set at contract issue and will not change while the optional benefit is in effect. Refer to the latest rate sheet prospectus supplement at PacificLife.com for current charges.
Clients may take withdrawals at a percentage determined by the age at which they make their first withdrawal and whether they select Single Life or Joint Life.
Enhanced Income Percentage1
(Contract Has Value)
| Age at First Withdrawal (or first withdrawal after a reset) |
Single Life | Joint Life |
| 59½–64 | 5.55% | 5.05% |
| 65–69 | 8.30% | 7.80% |
| 70+ | 8.80% | 8.30% |
| Guaranteed Lifetime Income Percentage1 (Contract Value = $0) |
Single Life or Joint Life |
| 59½–64 | 3.25% |
| 65–69 | 3.25% |
| 70+ | 3.25% |
1As a percentage of the protected payment base.
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 amount. If an early withdrawal reduces the contract value to zero, Enhanced Income Select 2 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 enhanced income amount, the protected payment base will be reduced on a proportionate basis for the amount in excess of the enhanced income amount. If a withdrawal exceeds the enhanced income amount and reduces the contract value to zero, the optional benefit will terminate.
Maximum Issue Age: 85 (For Single Life, the contract can have only one owner, and the owner must be an annuitant except on contracts with non-natural owners. For Joint Life, both spouses must be age 85 or younger.)
Investment Options
Choose from a diverse set of benefit-eligible investment options including Portfolio Optimization Portfolios, Pacific Dynamix® Portfolios, and asset-allocation funds. Exclusions may apply.
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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.
Guarantees, including optional benefits, are subject to the issuing company's claims-paying ability and financial strength and do not protect the value of the variable investment options, which are subject to market risk.
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, 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. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.
Only one optional guaranteed minimum withdrawal benefit (GMWB) can be purchased on a variable annuity. A GMWB rider does not guarantee a rate of return or growth rate.
Enhanced Income Select 2 is named “Guaranteed Withdrawal Benefit XXIII Rider — Single Life” and “Guaranteed Withdrawal Benefit XXIII Rider - Joint Life” in the contract rider.
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 and an affiliate of Pacific Life & Annuity Company. Product availability and features may vary by state.
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.
Contract Form Series: 10-17800, 10-178OR
Rider Series: ICC20:20-1021, ICC20:20-1022
State variations to contract form series and rider series may apply.
For financial professional use only. Not for use with the public.
VAQ2022RIA-1023H