Consider Pacific Harbor for pre-retirees and retirees who:
Pacific Harbor provides steady growth while also creating additional wealth through the power of tax deferral. It offers clients:
Withdrawals and Withdrawal Charges
Withdrawals are permitted 30 days after contract issue. Pacific Harbor has no withdrawal charges; however, a market value adjustment (MVA) may apply.
Market Value Adjustments (MVA)
An MVA may apply for withdrawals during the Initial Guarantee Term that are in excess of 10% of the prior anniversary's contract value (10% of purchase payments in the first year). There is no MVA assessed on withdrawals made after the Initial Guarantee Term has expired. 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 5-Year U.S. Liquid Index here.
Withdrawals without MVA
In the first contract year, 10% of the total purchase payments may be withdrawn without an MVA. For each subsequent contract year, 10% of the contract value as of the prior contract anniversary may be withdrawn without an MVA.
In addition, the MVA will be waived for:
The interest rate credited on the initial purchase payment is guaranteed for the duration of the Initial Guarantee Term selected. Only one term may be selected per contract. After the Initial Guarantee Term expires, and on all subsequent contract anniversaries, a renewal rate will be declared by Pacific Life and is guaranteed for one contract year. The renewal rate will never be lower than the guaranteed minimum interest rate stated in the contract.
The initial interest rate credited will depend on the total of all purchase payments received at issue.
The breakpoints are:
If a purchase payment received after issue causes the amount of the total purchase payments (minus withdrawals) to exceed the current breakpoint, the crediting rate may be increased.
If death occurs before annuity income payments begin, a death benefit equal to the contract value is paid on the death of the first owner or the last annuitant.
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.
All cash payments and 1035 exchange/transfer requests must be submitted with the application. Subsequent payments are not allowed.
Maximum Annuitant/Owner Issue Age: 85
Maximum Annuitization Age: 95
1May be subject to a positive or negative market value adjustment (MVA).
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.
Pacific Harbor is not available in New York.
All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
Annuities are long-term contracts designed for retirement. 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 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.
No guaranteed rate will be less than the minimum guaranteed rate stated in the contract. Pacific Life determines, at its discretion, annual interest rates in excess of the stated minimum guarantee in the contract.
The Guaranteed Minimum Surrender Value (GMSV) applies to contracts upon full surrender, annuitization, or death. The GMSV is equal to 87.5% of purchase payments (minus any withdrawals), accumulated at a fixed interest rate.
Pacific Harbor Guaranteed Rate is named “Individual Limited Premium Deferred Annuity Contract with Market Value Adjustment Feature” in the contract.
Under current law, a nonqualified annuity that is owned by an individual is generally entitled to tax deferral. IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax deferred. Therefore, a deferred annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These features include lifetime income and death benefit options.
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.
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.
The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.
Contract Form Series: ICC21:30-1449
Endorsements: ICC21:15-1435
State variations to contract form series and endorsements may apply.
For financial professional use only. Not for use with the public.
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FAQ2362-1124-RIA
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