Newport Beach, Calif. – February 12, 2008 – Pacific Life Insurance Company has added a new optional benefit to its suite of variable annuities. Foundation10, a guaranteed minimum withdrawal benefit for life, provides an annual 10% credit for up to 10 years, increasing the protected amount available for future withdrawals. It can be ideal for clients who are within 10 years of retiring, in a hurry to meet retirement income goals, and need additional resources for lifetime income.
“Clients need more than a strategy. With Foundation10, what you put into your variable annuity in the first contract year becomes your protected amount, which is guaranteed to double in 10 years. You also have the opportunity for additional growth through market gains,” says Kathleen McWard, vice president of marketing, Annuities & Mutual Funds Division. “Up to 5% of the protected amount can be withdrawn annually for the rest of your life, as long as you take your first withdrawal on or after age 59½.”
Foundation10 ensures clients can:
- Double First Year’s Protected Amount in 10 Years
- Trap Market Gains through Step-Ups
- Guarantee 5% Withdrawals for Life
Foundation10 is an optional benefit available with Pacific Life variable annuities at an additional cost and requires clients to be fully allocated to a diversified Portfolio Optimization model. The 10% credit is available for up to 10 years, provided no withdrawals are taken and increases the protected amount that can be withdrawn in later years, but it is not added to the contract value.
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.1 Pacific Life counts more than half of the 50 largest U.S. companies as clients2 and is a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities.
1 Product features and availability vary by state.
2 Data compiled by Pacific Life using the FORTUNE 500Ò list as of April 2007.
Guarantees are subject to Pacific Life’s claims-paying ability and do not protect the value of the variable investment options.
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 in the product and underlying fund prospectuses available from your registered representative or by calling (800) 722-4448. Read the prospectuses 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 may also apply. Withdrawals will reduce the value of the death benefit and any optional benefits.
Foundation 10 withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. Foundation 10 is named "Guaranteed Withdrawal Benefit II" in the contract rider.
Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York.
Variable annuities 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.
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