NEWPORT BEACH, Calif., June 23, 2009—Pacific Life has added a new optional benefit to its suite of variable annuities. CoreIncome Advantage, a guaranteed minimum withdrawal benefit for life, provides predictable retirement income regardless of market ups and downs. Up to 4% of the protected amount can be withdrawn annually for life as long as the first withdrawal is taken at or after age 65.
“Today’s complex world calls for solutions to protect and secure clients’ retirement. We offer a wide range of simple, yet innovative products and features designed for retirement income success,” says Christine Tucker, vice president of marketing, Annuities & Mutual Funds Division. “CoreIncome Advantage provides a guaranteed stream of income through withdrawals without worrying about market volatility. And, when used with our newly launched Pacific Dynamix portfolios, it can help create a cost-efficient retirement strategy.”
CoreIncome Advantage is an optional benefit available with Pacific Life variable annuities for an additional cost of 0.40%, deducted quarterly (0.10%) and requires clients to be fully allocated to an eligible investment allocation. Clients have the opportunity to lock in market gains through step-ups and potentially increase the amount available for future withdrawals.
Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. With more than half of the 100 largest U.S. companies as its clients, Pacific Life is also a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities. For additional company information, including current financial strength ratings, visit the About Pacific Life section of this Web site.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of April 2009 is compiled by Pacific Life using the 2009 FORTUNE 500® list.
You should carefully consider a variable annuity’s risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment objectives of the underlying investment options. This and other information about Pacific Life are provided in the product and underlying fund prospectuses. These prospectuses are available from your registered representative or by calling the (800) 722-4448. Read them carefully before investing.
Variable annuities are long-term investments designed for retirement. The value of the variable investment options will fluctuate and, when redeemed, may be worth more or less than the original cost. Withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. If withdrawals and other distributions are taken prior to age 59½, a 10% federal tax penalty may apply. A withdrawal charge also may apply. Withdrawals will reduce the value of the death benefit and any optional benefits.
IRAs and qualified plans—such as 401(k)s and 403(b)s—are already tax-deferred. Therefore, an annuity should be used only to fund an IRA or qualified plan to benefit from the annuity’s features other than tax deferral. These include lifetime income, death benefit options, and the ability to transfer among investment options without sales or withdrawal charges.
CoreIncome Advantage withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. CoreIncome Advantage is named “Core Withdrawal Benefit” in the contract rider.
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 company is solely responsible for the financial obligations accruing under the products it issues. Product and rider guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not protect the value of the variable investment options.
Variable annuities issued by Pacific Life and mutual funds issued by Pacific Life Funds are available through licensed third-party broker/dealers and distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third-party broker/dealers.
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