Pacific Expedition® 2

A Deferred Fixed Annuity

 

Pacific Expedition 2 offers certainty through rates that are guaranteed for the entire withdrawal charge period and a purchase payment guarantee. There is no annual contract, mortality and expense, or administrative fees.

 
 

Client Profiles

 

Consider Pacific Expedition 2 for:

  • Conservative clients age 55 or older.
  • Savers interested in steady growth potential without market risk.
 
 

Key Features

 

Rates Guaranteed for the Initial Guaranteed Period

Choice of:

  • 3 years
  • 5 years
  • 7 years

Purchase Payment Guarantee

Upon a full withdrawal, your client will receive an amount at least equal to the total purchase payments, minus prior partial withdrawals including any withdrawal charges on those prior partial withdrawals. If no partial withdrawals are taken prior to the full withdrawal, then your client will always receive an amount at least equal to the total purchase payments.

 
 

Additional Information

 

Withdrawal Charges and Fees

The initial guaranteed periods correspond to the withdrawal charge schedule. Withdrawal charges apply only during the initial guaranteed period when the amounts taken are more than those discussed in the "Withdrawals without Charge" section below.

 

3 Years

Contract Year 1 2 3
Charge per Withdrawal
 8% 8% 7%


5 Years

Contract Year 1 2 3 4 5
Charge per Withdrawal
 8% 8% 7% 7% 6%


7 Years

Contract Year 1 2 3 4 5 6 7
Charge per Withdrawal
 8% 8% 7% 7% 6% 5% 4%

 


Withdrawals without Charge

Withdrawals are permitted 30 days after contract issue. In the first contract year, 10% of the total purchase payments may be withdrawn without charge. For each subsequent contract year, 10% of the contract value as of the prior contract anniversary may be withdrawn without charge.

In addition, withdrawal charges will be waived for:

  • Required minimum distribution (RMD) withdrawals (if calculated by Pacific Life).
  • Withdrawals after the first contract year if diagnosed with a terminal illness (life expectancy of 12 months or fewer). Not available in CA.
  • Withdrawals after the first 90 days if confined to an accredited nursing home for 30 days, as long as not confined when the contract is issued. Not available in CA.
  • Death benefit proceeds.
  • Annuity income payments (available one year after contract issue).

The interest rate credited on the initial purchase payment is guaranteed for the duration of the initial guaranteed period selected. Only one period may be selected per contract. After the initial guaranteed period 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 minimum guaranteed 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:

  • Less than $100,000
  • $100,000 and more

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.

Clients may convert the contract to annuity income payments one year after contract issue.

 

Annuity Income Options Available:

Period Certain Option

  • Up to 30 years1

 

Single Life Options

  • Life Only
  • Life with Period Certain (5–30 years1)
  • Life with Cash Refund
  • Life with Installment Refund2

 

Joint Life Options3

  • Joint Life with Period Certain (5-30 years1)
  • Joint Life with Cash Refund
  • Joint Life with Installment Refund2

 

Joint and Survivor Life Options3

  • Joint and Survivor Life Only

 

Income payments can be reduced to 50% or 67% of the current income payment upon the death of the primary annuitant.

 

Type
Fixed annuitization only.
Partial annuitization is not available.

 

Frequency
Monthly, quarterly, semiannually, annually

 

Minimum Annuity Income Payment Amount
$240 ($20 in New York)

 

Death Benefit

If death occurs before annuity income payments begin, a death benefit equal to the contract value is paid at the death of the first owner or the last annuitant.

Limited premium. All cash payments and 1035 exchange/transfer requests must be submitted with the application.

Minimum Purchase Payment: $25,000 (qualified and nonqualified)

Maximum Purchase Payments: $1 million; total purchase payments greater than $1 million require Pacific Life home-office approval in advance.

Maximum Annuitant/Owner Issue Age: 85

Maximum Annuitization Age: 95

 
 

Fixed Annuity Rates & Resources

 
Pacific Expedition 2 Client Guide
Pacific Expedition 2 Fact Sheet
Pacific Expedition 2 Fact Sheet for Oregon
Pacific Expedition 2 Rate Flyer - 3 Year
Pacific Expedition 2 Rate Flyer - 5 Year
Pacific Expedition 2 Rate Flyer - 7 Year
Pacific Expedition 2 State Approval Grid
Fixed Annuity Rates

All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.

1For qualified contracts, the maximum length of time for the Period Certain options may not exceed 10 years, if necessary, to comply with required minimum distribution (RMD) regulations for annuities stipulated in the Setting Every Community Up for Retirement Enhancement (SECURE) Act.

2Not available on qualified contracts.

3For qualified contracts, the Joint Life options require that the joint annuitant be a spouse or an individual older than or no more than 10 years younger than the primary annuitant.

Broker/dealer and state variations may apply. Contact your broker/dealer for availability.

Annuity withdrawals are taxable as ordinary income when distributed and may be subject to a 10% additional tax if withdrawn before age 59½. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.  If withdrawal charges are paid on partial withdrawals, the purchase payment guarantee will be decreased. 

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.

Pacific Expedition 2 (ICC20:30-1339-A), including the optional rider (ICC20:20-1339), are issued by Pacific Life. Contract form series and rider series may vary by state.

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.

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.

Unless otherwise noted, all aforementioned money managers, their distributors, and affiliates are unaffiliated with Pacific Life and Pacific Select Distributors, LLC.

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company or Pacific Life & Annuity Company. In New York, insurance products are only issued by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. 

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. 

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.

No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency

For financial professional use only. Not for use with the public.

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