Lifetime Income

Through Guaranteed Lifetime Withdrawal Benefits


Give Clients the Confidence to Stay Invested

One of the keys to investment success is to buy low and sell high. Yet, driven by emotion, many investors react to the markets and do just the opposite.

With a variable annuity optional lifetime income benefit, available for an additional cost, your clients have reliable income, no matter how markets perform. In a downturn, it should give them confidence to stay the course!

We Make It Simple

  • We do not require managed-volatility investment options or asset-transfer programs.
  • We offer a wide variety of rider-eligible investment options.
  • Living benefits, except for Core Protect Plus, can be added after issue, subject to availability.
 

Comparison of Key Features

Enhanced Income Select

 

Higher income up to 8.0%

  • Age 59½ or older.
  • Looking to take higher income now.

Age at First Withdrawal
(or first withdrawal after a reset)

 

Enhance Income Percentage1
(Contract Has Value)

  Single Life Joint Life
59½ 5.6% 5.1%
65–69 7.6% 7.1%
70+ 8.0% 7.5%

 

Guaranteed Lifetime Income Percentage1
(Contract Value = 0)

  Single or Joint Life
70+ 3%

 

1 An enhanced amount of guaranteed income may be withdrawn annually, beginning as early as age 59½, as long as the contract value is greater than zero. The maximum Enhanced Income Percentage (as a percentage of the protected payment base) that can be withdrawn annually is based on the age when the first withdrawal is taken after age 59½ or after a reset takes place. If the contract value goes to zero, then the Guaranteed Lifetime Income Percentage is 3%.

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 amount. If an early withdrawal reduces the contract value to zero, Enhanced Income Select will terminate and clients will not receive the guaranteed lifetime income amount.

The protected amount receives pro rata treatment. If a withdrawal exceeds the protected payment amount, the protected amount will be reduced on a proportionate basis for the amount in excess of the protected payment amount. If a withdrawal exceeds the protected payment amount and reduces the contract value to zero, the optional benefit will terminate.

 
 

Core Protect Plus

 

7% annual credit for up to 5 years (if no withdrawals are taken)

  • Age 60 or older.
  • Looking to take income within the next five years.
  • Wanting guaranteed increases to their income amount while they wait to take withdrawals.

Age at First Withdrawal
 

Lifetime Income Percentage

  Single Life Joint Life
Prior to 65
0% 0%
65+
5% 4.5%

Prior to age 65 (based on the youngest spouse's age for Joint Life), any withdrawal amount will reduce the protected amount either by the amount of the withdrawal or on a proportionate basis, whichever results in the lower protected amount. If an early withdrawal reduces the contract value to zero, Core Protect Plus will terminate.

The protected amount receives pro rata treatment. If a withdrawal exceeds the protected payment amount, the protected amount will be reduced on a proportionate basis for the amount in excess of the protected amount. If a withdrawal exceeds the protected payment amount and reduces the contract value to zero, the optional benefit will terminate.

 

Core Income Advantage (CIA) Select

Traditional income up to 5.75%

  • Age 65 and older.
  • Looking to take income now.
  • In need of predictable, guaranteed lifetime income.

Withdrawal Percentages
 

  Single Life Joint Life
Prior
to 65
0% 0%
65+ 5.75%
for life
5.25%
for life

Prior to age 65, (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 amount. If an early withdrawal reduces the contract value to zero, Core Income Advantage Select will terminate and clients will not receive the guaranteed lifetime income amount.

The protected amount receives pro rata treatment. If a withdrawal exceeds the protected payment amount, the protected amount will be reduced on a proportionate basis for the amount in excess of the protected payment amount. If a withdrawal exceeds the protected payment amount and reduces the contract value to zero, the optional benefit will terminate.

 
 
Guarantees, including optional benefits, are subject to the issuing company's claims-paying ability and financial strength and do not protect the value of the variable investment options, which are subject to market risk.
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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.

Only one optional guaranteed minimum withdrawal benefit (GMWB) can be purchased on a variable annuity. The GMWB riders do not guarantee a rate of return or growth rate.

Not all optional benefits are available at all broker/dealer firms or in all states. Contact your broker/dealer or Pacific Life for more information

Rider Series: ICC13:20-1258, ICC13:20-1259, ICC16:20-1501, ICC16:20-1502, ICC18:20-1425, ICC18:20-1426 (subject to state variation)


 

Let's Talk!

Pacific Life has helped millions of people achieve their retirement goals for more than 150 years. Let's talk about how we can help you build the future your clients envision.

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