Introducing Pacific Advisory Variable Annuity
 

A fee-based annuity built for Registered Investment Advisors
 

 

Beginning February 19, 2021, Pacific Life will offer Pacific Advisory Variable Annuity, an investment-only variable annuity tailored for the way RIAs do business. Pacific Advisory Variable Annuity highlights include: No withdrawal charges; refreshingly transparent pricing; high quality investment options; and an optional, advisory fee-friendly Return of Investment death benefit available for an additional cost.
 

 

Pacific Advisory Variable Annuity Facts
Minimum Purchase Payments $25,000 (nonqualified and qualified)
Age Guidelines Maximum Annuitant/Owner Age: 90
Maximum Annuitization Age: 100
Charges and Fees

The cost-conscious fee structure is a percentage per year of each subaccount’s assets, deducted daily.

Total VA Cost1: 0.45% + Investment Options

  • Mortality and Expense Risk Fee: 0.15%
  • Platform Fee: 0.15% (Allows the investment options to be offered under the contract)
  • Administrative Fee: 0.15%
  • Annual Contract Fee: None
  • Withdrawal Charge Schedule: None
Investment Options

Net Portfolio Expense Range: 0.03%–1.00%

Our investment options are designed to align with RIA investment strategies and feature choices from some of today's top money managers.

  • Choose from more than 80 individual investment options for a well-diversified portfolio.
  • For a turnkey approach to diversification, choose from more than 20 professionally managed asset allocation portfolios.
Withdrawals

There are no fees or withdrawal charges for scheduled or one-time withdrawals.

Withdrawals for Advisory Fees

Owners can authorize their investment advisor to withdraw advisory fees directly from the contract. Recent Private Letter Rulings (PLR) allow advisory fee withdrawals, paid from nonqualified contracts, to not be treated as taxable distributions and will not be reported if the fee withdrawal does not exceed an annual rate of 1.50% of the account value2 during the calendar year. The PLR does not address qualified contracts.

  • Withdrawals from the contract to pay advisory fees reduces the account value by the withdrawal amount.
  • Withdrawals for advisory fees may impact guarantees under the contract and the benefits provided by optional death benefit riders.
Death Benefits

Standard Death Benefit Fee: None
The standard death benefit is equal to the account value.

Optional Return of Investment Death Benefit Fee: 0.15%
This benefit offers the greater of:

  • The account value.
  • The total of all purchase payments into the contract, adjusted for withdrawals3.

The Return of Investment death benefit is available only at contract issue for owners and annuitants age 85 or younger.

 


For more information about Pacific Life advisory annuities, email PacificLifeAdvisory@PacificLife.com.


 

 

1Total VA Cost does not include optional benefit costs or advisory fees.
 

2The account value is the annuity contract value.
 

3Advisory fee withdrawals will not be considered a withdrawal if the amount of advisory fees withdrawn is equal to or less than 1.50% of the total account value for the calendar year. Advisory fee withdrawals that exceed an annual rate of 1.50% of the account value during the calendar year may reduce the death benefit amount by more than the actual excess withdrawal amount.
 

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 are provided in the product and underlying fund prospectuses. These prospectuses should be read carefully before investing.

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.

The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original cost.

Variable annuities are long-term investments designed for retirement. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For non-qualified 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 tax may apply. A withdrawal charge also may apply. Withdrawals will reduce the contract value and may reduce the value of the death benefits and any optional benefits.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. 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. 1Total VA Cost does not include optional benefit costs or advisory fees.
 

Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA) and an affiliate of Pacific Life & Annuity Company. Fixed and variable annuities are available through licensed, independent third parties.
 

 

Contract Form Series: ICC20:10-1040
 

Rider Series: ICC20:20-1040
 

State variations to contract form and rider series may apply
 

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