Introducing Portfolio Income Protector
A fee-friendly optional lifetime income benefit available with Pacific Advisory Variable Annuity
Pacific Life is committed to providing financial professionals and their clients with a variety of options to create a retirement plan they can count on. Effective May 1, 2021, Pacific Life is pleased to announce a fee-friendly guaranteed mimimum withdrawal benefit (GMWB) designed to help clients accelerate the growth of their income potential while they prepare for retirement as well as provide consistent, protected lifetime income when they’re ready to retire. Available for an additional cost, Portfolio Income Protector offers:
Income Growth
- A 5% simple-interest credit is added annually to the protected payment base for up to 10 years or until the first withdrawal (excluding advisory fee withdrawals).
- Automatic resets lock in market performance. After a reset, annual credits are based on the new protected payment base for the remainder of the 10 years. Resets continue throughout the life of the contract.
- A variety of investment options are available to allocate clients’ portfolios according to their investment styles.
Income Certainty
- Provides a steady amount of protected lifetime income, beginning as early as age 59½.
Fee-Friendly Structure
- Allows financial professionals the ability to bill on the clients’ assets without creating a taxable event or impacting elements of the benefit rider.
| Portfolio Income Protector Facts | |||||||||||||
| Maximum Issue Age | 85 | ||||||||||||
Annual Charge |
The annual charge is a percentage of the protected payment base, deducted quarterly. Single Life Option: 1.25% Joint Life Option: 1.35% Charge is set at contract issue and will not change while the optional benefit is in effect. |
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| Lifetime Withdrawal Percentages | Lifetime withdrawal percentages are based on the age clients elect to begin withdrawals or the first withdrawal after a reset. Withdrawals for advisory fees do not affect lifetime withdrawal percentages.
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| 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 account value for the calendar year. Excess advisory fee withdrawals more than 1.50% are not allowed. | ||||||||||||
The withdrawal percentages, annual credit, and charges are subject to change. Portfolio Income Protector may be elected only at issue or within 60 days after the contract issue date. Please note: This rider will not be available after 60 days following the contract issue date.
Insurance products are issued by Pacifc 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.
For more information about Pacific Advisory Variable Annuity with Portfolio Income Protector, contact a managing director at PacificLifeAdvisory@PacificLife.com.
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.
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.
Portfolio Income Protector is named “Guaranteed Withdrawal Benefit XXV Rider – Single Life” and “Guaranteed Withdrawal Benefit XXV Rider – Joint Life” in the contract rider.
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.
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, and are available through licensed third parties.
Contract Form Series: 10-1040, ICC20:10-1040
Rider Series: 20-2050, ICC21:20-1050, 20-2051, ICC21:20-1051
State variations to contract form and rider series may apply.