For clients who want to maximize income and need flexibility, Enhanced Income Select 2 offers an annual credit, enhanced income starting as early as age 59½, the ability to start and stop withdrawals, and an Income Rollover feature that allows clients to carry over remaining unused amounts into the next year's withdrawal.
Annual Credit
- A 7% simple-interest annual credit added to the protected payment base for up to 10 years assuming no withdrawals are taken.
- Automatic annual resets to lock in market gains. After a reset, annual credits are based on the new protected payment base for the remainder of the 10 years or until the first withdrawal is taken.
- If a withdrawal is taken, including a required minimum distribution (RMD), the annual credit ends.
Enhanced Income
- An enhanced amount of income, beginning as early as age 59½, if the contract value is greater than zero. Guaranteed lifetime income of 3% if the contract value goes to zero.
- Clients may take withdrawals at a percentage determined by the age at which they make their first withdrawal and whether they select Single Life or Joint Life.
| Age at First Withdrawal (or First Withdrawal After a Reset) |
Enhanced Income Percentage1 (Contract Has Value) |
Guaranteed Lifetime Income Percentage1 (Contract Value = $0) |
|
|---|---|---|---|
| Single Life | Joint Life | ||
| 59½–64 | 5.25% | 4.75% | 3.0% |
| 65–69 | 8.00% |
7.50% | 3.0% |
| 70+ | 8.50% |
8.00% | 3.0% |
1As a percentage of the protected payment base.
Income Rollover Feature
To provide clients with more flexibility in retirement, this feature allows them to carry over unused withdrawals into the next year. Once withdrawals begin, the income rollover amount is calculated at the start of each contract year. It is equal to any remaining enhanced income amount from the previous contract year. Withdrawals reduce the income rollover amount before the enhanced income amount. The income rollover amount is not adjusted by additional purchase payments or resets and will not apply if greater than the contract value.
Restrictions apply. See the prospectus for details.
Early Withdrawals
Prior to age 59½ (based on the youngest spouse’s age for Joint Life), any withdrawal amount will reduce the protected payment base by either the amount of the withdrawal or on a proportionate basis, whichever results in the lower protected payment base. If an early withdrawal reduces the contract value to zero, Enhanced Income Select 2 will terminate and clients will not receive the guaranteed lifetime income amount.
Excess Withdrawals
The protected payment base receives pro rata treatment. If a withdrawal exceeds the enhanced income amount, the protected payment base will be reduced on a proportionate basis for the amount in excess of the enhanced income amount. If a withdrawal exceeds the enhanced income amount and reduces the contract value to zero, the optional benefit will terminate.
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Enhanced Income Select 2 Brochure
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Enhanced Income Select 2 Fact Sheet
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Enhanced Income Select 2 Fact Sheet - Pacific Quest
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Enhanced Income Select 2 and Future Income Generator Pricing Sheet
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Life in Motion. Income to Match. Using the Income Rollover Feature of Enhanced Income Select 2
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When Do You Need the Most Income?
Guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.
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 are provided in the product and underlying fund prospectuses. These prospectuses should be read carefully before investing.
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 tax may apply. A withdrawal charge also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.
Enhanced Income Select 2 is named "Guaranteed Withdrawal Benefit XXIII Rider--Single Life" and "Guaranteed Withdrawal Benefit XXIII Rider--Joint Life" in the contract rider.
Only one guaranteed minimum withdrawal benefit (GMWB) can be purchased on a variable annuity.
Living benefits are available for an additional cost. Not all benefits are available at all broker/dealer firms or in all states. Contact your broker/dealer or Pacific Life for more information.
Contract Form Series: ICC20:10-1020, 10-17800, 10-178OR (state variations may apply)
Rider Series: ICC20:20-1021, ICC20:20-1022 (state variations may apply)
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
For financial professional use only. Not for use with the public.