Newport Beach, CA. (August 4, 2005) – Pacific Life’s Pacific Indexed Accumulator adds an equity indexed universal life insurance policy to the company’s life insurance product offerings. Featuring credited interest based in part on the positive performance of the S&P 500® Index1 (excluding dividends), Pacific Indexed Accumulator (PIA) combines higher crediting rate potential without direct participation in the equity market.
“In today’s interest and market environment, Pacific Indexed Accumulator appeals to clients who want the potential of earning higher interest in their policy cash values but want to limit the impact of negative returns to 0%,” commented Alyce Peterson, vice president of marketing services for the Life Insurance Division of Pacific Life. “It has the affect of ‘smoothing the waves’ of volatility.” Adding equity indexed universal life to the popular Pacific Life product line provides one more choice from a quality carrier. Pacific Life has an established reputation for valuing its policyowners with its variable and universal life insurance products.”
Equity index universal life insurance (EIUL) is a traditional universal life insurance policy offering an index feature. Policy cash value can be transferred from a fixed account that offers traditional fixed interest rates, to an indexed account. The indexed account uses an outside index like the S&P 500® in the calculation of interest credits. While the impact of negative index returns is limited by a growth floor (typically 0%), the maximum interest crediting rate for an EIUL policy is limited by a growth cap. As a universal life insurance product, EIUL offers death benefits, flexible premiums, and tax deferred accumulation of cash value.
Key features of Pacific Indexed Accumulator include:
- Crediting rates that are based in part on the positive performance of the S&P 500® (excluding dividends)
- Crediting rates that never fall below 0% in any given year when the S&P 500® posts negative returns with the assurance of a five-year cumulative guaranteed rate of 2% per year
- Conventional Fixed Account
- Three Death Benefit Options
- Short-Term No Lapse Guarantee Rider
- No Policy Maturity Date
According to Peterson, Pacific Indexed Accumulator can be used for family financial protection, as well as retirement, estate and business planning.
Founded in 1868, Pacific Life provides life insurance products, individual annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as clients2 and is a member of Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities.
1 The S&P 500 (Standard & Poor's Composite Stock Price Index) is composed of 500 common stocks representing major U.S. industry sectors. If the S&P 500 is discontinued or if we are unable to use it for reasons beyond our control, we will substitute a successor index of our choosing (subject to the approval of the state insurance authorities).
"Standard & Poor's®," “S&P®,”"S&P 500®," "Standard & Poor's 500," and "500" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Pacific Life Insurance Company. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of purchasing the Product.
Non-guaranteed elements are not guaranteed by definition. As such, Pacific Life reserves the right to change or modify any non-guaranteed element. This right to change non-guaranteed elements is not limited to a specific time or reason.
2 Data compiled by Pacific Life using the FORTUNE 500 list as of April 2005
Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features may vary by state.