Pacific Expedition®

A Deferred Fixed Annuity

Pacific Expedition offers interest-rate guarantees and an option for your clients to potentially raise their guaranteed interest rate. There are no annual contract, mortality & expense, or administrative fees.


Client Profiles

Consider Pacific Expedition for:

  • Conservative pre-retirees and retirees.
  • Savers interested in steady growth potential without market risk.
  • Clients who are interested in an option to participate in rising interest rates.

Key Features

Rates Guaranteed for the Initial Guaranteed Period

Choice of:

  • 5 years
  • 7 years

Purchase Payment Guarantee

Upon a full withdrawal, your client will receive an amount at least equal to:

  • 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.

Credit Enhancement

A credit is immediately applied to the contract value. It is a percentage of the purchase payment and may vary by the initial guaranteed period selected.

Optional RateAdvantage Feature

RateAdvantage is an optional feature that provides a one-time opportunity, during the initial guaranteed period, to increase the initial guaranteed interest rate if newly declared rates are higher.

  • Must be elected at contract issue.
  • Initial guaranteed interest rates will be lower for contracts with the RateAdvantage feature elected.
  • If RateAdvantage is elected, clients can exercise the feature if newly declared rates (rates on new contracts for the same guaranteed period with RateAdvantage elected) are higher on a contract anniversary during the initial guaranteed period than the initial guaranteed interest rate set at contract issue.
  • The feature can be exercised once during the initial guaranteed period and it must be within 60 days of a contract anniversary. The new rate will be effective for the remainder of the initial guaranteed period.
  • The amount of the rate increase will be subject to a maximum each year, which will increase each contract year. Maximum rate increases are specified in the contract at issue.
  • The rate will automatically increase if newly declared rates are higher and the feature has not been exercised as of the last contract anniversary prior to the end of the initial guaranteed period.

 


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.


5 Years

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


7 Years

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

 

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 interest rate credited will depend on the total of all purchase payments received (minus withdrawals).

The breakpoints are:

  • $25,000–$99,999
  • $100,000 and more

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

Annuity Income Options Available

  • Life Only.
  • Life with Period Certain (5–30 years1).
  • Joint and Survivor Life.
  • Period Certain Only (up to 30 years1).

Type
Fixed annuitization only
Partial annuitization is not available

Frequency
Monthly, quarterly, semiannually, annually

Minimum Annuity Income Payment Amount
$250 ($20 in New York)

Premium: Limited premium. All cash purchase payments must be submitted with the application. 1035 exchange/transfer requests must be submitted with the application and the funds must be received within 90 days after contract issue.

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

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

Maximum Annuitant/Owner Issue Age: 88

Maximum Annuitization Age: 95


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 be less than 30 years, if necessary, to comply with required minimum distribution (RMD) regulations for annuities.

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.

The credit enhancement is not counted as a purchase payment, will not be returned under the free-look provision, and is treated as earnings for tax purposes when distributed.

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 (30-1229, 30-1229-R, including state variations) are issued by Pacific Life. 

For Use With Clients
 
FINANCIAL PROFESSIONALS

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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.

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. 

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. Variable and fixed annuity products are available through licensed third parties.

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