Newport Beach, Calif. (Nov. 28, 2007) - Living to 100 and beyond adds a new dimension to retirement planning — the reality that many Americans will outlive their money. Clients using variable universal life insurance (VUL) from Pacific Life Insurance Company for death benefit protection and potential supplemental retirement income can address this concern by purchasing the Guaranteed Minimum Distribution II Rider (Form #R07GMD) to guarantee the distributions from their policy.
Available with select Pacific Life VUL policies, the Guaranteed Minimum Distribution II Rider (GMD II) when exercised and in effect offers:
- Guaranteed annual distributions based on the policy’s accumulated value
- Powerful reset feature to potentially increase distributions
- No-lapse guarantee while the rider is in effect
“Retirement tops the list of Americans’ financial concerns, especially now that people are realizing they could live to age 100,” said Alyce Peterson, vice president of marketing services for the company’s Life Insurance Division. “A VUL policy can establish an additional and potentially substantial source of income, plus policyowners have the death benefit protection they want for their family or business.”
Peterson further explained that certain distributions from a VUL policy in the form of policy withdrawals and loans1 are not subject to the same restrictions as qualified plans and are generally income-tax free.2
GMD II must be purchased when the policy is issued for an additional charge and the insured must be 65 or younger. A number of conditions must be met to exercise the rider, such as age, policy duration and face amount to accumulated value ratios.
About Pacific Life
Founded in 1868, Pacific Life provides life insurance products, annuities and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans.3 Pacific Life counts more than half of the 50 largest U.S. companies as clients4.
1 Policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.
2 Tax-free income assumes: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death; (3) withdrawals taken during the first 15 policy years do not occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a Modified Endowment Contract. See IRC §§7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.
3 Product features and availability vary by state.
4 Data compiled by Pacific Life using the FORTUNE 500® list as of April 2007.
Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features vary by state. Product and rider guarantees are backed by the financial strength and claims-paying ability of Pacific Life.
Variable insurance products issued by Pacific Life Insurance Company are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life and are available through licensed third party broker-dealers.
For more detailed information about Pacific Life’s variable life insurance products and the underlying funds, including charges, expenses and limitations, contact your registered representative or call Pacific Life at (800) 800-7681 for current product and underlying funds prospectuses. Read the prospectuses carefully before investing or sending money.