Income Guard
Protects and Grows Income
Income Guard, an optional benefit available with a Pacific Protective Growth registered index-linked annuity, is designed for clients who want a steady stream of lifetime income and also need flexibility. Income Guard grows, protects, and ensures income can last for life, or for the lives of both spouses. Clients can change their initial income choice (Single Life or Joint Life) before starting withdrawals under the benefit. They can also roll over unused withdrawal amounts into the next year's withdrawal.
Consider This for Clients Who:
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Want to grow future income by waiting to take it for up to 10 years.
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Value an opportunity for additional income increases through automatic resets if the contract value is higher than the protected payment base as of a contract anniversary.
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Want the flexibility to change the income choice (Single Life or Joint Life) before they begin taking income if their situations change1.
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May not need all their income every year and like having the ability to roll over unused withdrawal amounts.
Features
Electing Income Guard and Issue Ages
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Income Guard can be elected only when Pacific Protective Growth is purchased.
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Issue ages are 45 to 85.
How Income Can Grow
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Deferral credits are added to the withdrawal percentage each year that clients have not yet started to take lifetime income under the benefit, for up to 10 years.
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Automatic annual resets occur when the contract value is higher than the protected payment base on any contract anniversary. These resets apply for the life of the annuity contract.
Protected Lifetime Income
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Clients can begin taking lifetime income as soon as age 59½ (based on the youngest spouse for Joint Life).
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Clients may take withdrawals at a percentage determined by the age at which they purchased Pacific Protective Growth with Income Guard, whether they chose Single Life or Joint Life, and the number of years they waited before starting lifetime withdrawals.
Withdrawal Percentages and Deferral Credits
To view our current withdrawal and deferral credit rates, please refer to the Income Guard fact sheet.
Income Rollover Feature
Once clients begin taking lifetime income, they can roll over unused withdrawal amounts from one contract year into the next. The income rollover amount will never be more than the protected payment amount.
Available Interest-Crediting Options
Eligible interest-crediting options include all the 1-year crediting strategies and the 1-year Fixed Account option. If Income Guard is elected, initial and renewal crediting strategy rates will typically be equal to the rates for those who do not elect Income Guard. However, the initial and renewal crediting strategy rates may be lower.
Excess and Early Withdrawals
All withdrawals under Income Guard reduce the contract value in the same manner as any other withdrawal. Excess withdrawals (those that exceed the maximum annual withdrawal limits) may reduce the benefit by an amount greater than the value withdrawn. Early withdrawals (those that occur before income under the benefit begins) may reduce the benefits provided by Income Guard, perhaps significantly, and/or could terminate the benefit. Withdrawals under Income Guard also may reduce the benefits provided by the death benefit. Additionally, withdrawals taken under Income Guard from the index-linked options will be subject to an interim value calculation and adjustment if taken before the end of a term. If clients take a withdrawal before age 59½ or a withdrawal that is greater than the annual withdrawal amount, this may result in adverse consequences such as tax penalties, a permanent reduction in Income Guard benefits, the failure to receive lifetime withdrawals under Income Guard, or termination of Income Guard.
Resources
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1Restrictions apply. See the prospectus for more information.
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IMPORTANT DISCLOSURES
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.
An investment in a crediting strategy is subject to risks, including the possible loss of all or a significant portion of your principal investment and any credited contract earnings. This loss could be greater if you take a withdrawal or surrender your contract due to the imposition of withdrawal charges, a market value adjustment, if applicable, and possible negative tax consequences.
In the absence of an owner making an election prior to the end of an index term, any contract value in an expiring 6-year term for an index-linked option will remain in its current allocation for the next 6-year term if the index-linked option is available and the market value adjusted (MVA) term is renewed. If we do not receive transfer instructions prior to the end of an expiring 1-year term, index-linked options will remain in their current allocations for the next term if the index-linked option is available. For both 1- and 6-year terms, the new term is subject to the crediting strategy rates declared for that term, which may be different than the crediting strategy rates in the expiring term. For current and historical crediting strategy rates, please contact your financial professional or visit PacificLifeRates.com.
A registered index-linked annuity is an insurance contract and is subject to investment risk; its value will fluctuate and loss of principal is possible.
Income Guard is available for an additional cost.
Not all products or optional benefits are available at all states or firms.
This material must be preceded or accompanied by the product prospectus, which contains information about the contract’s features, risks, limitations, charges, and expenses. Investors should read the prospectus, which is available by visiting PacificLife.com/Prospectuses, and consider its information carefully before investing.
The crediting strategy or protection level are not applied until the end of the term. Before the end of a term, if the contract is surrendered or annuitized, a withdrawal is taken, or if the death benefit is paid, the transaction will reduce the interim value of your investment in that crediting option and could result in the loss of principal and previously credited contract earnings. Such losses could be as high as 100%. The interim value is the amount in the crediting option that is available for transactions that occur during the term, including full surrenders, withdrawals, free withdrawal amounts, and pre-authorized withdrawals, optional charges, guaranteed withdrawal amounts under the guaranteed lifetime withdrawal benefit, death benefit payments, and annuitization. The interim value could be less than the investment in the crediting strategy option even if the index is performing positively.
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. They are not backed by the independent third party from which this annuity is purchased, including the broker-dealer, 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.
Securities are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company.
Contract Form Series: 10-1900
Rider Series: 20-1925
State variations to contract form series and rider series may apply.