A Convenient Service for Owners of Life Insurance Policies from Pacific Life
The Automated Income Option (AIO):
Deciding to supplement your retirement income by taking loans and withdrawals from your life insurance policy is an important step in planning for your retirement. When it becomes time to begin taking your planned loans and partial withdrawals from your policy,† you can simplify your life by choosing Pacific Life’s Automated Income Option (AIO).
The Automated Income Option program allows Pacific Life policyowners to schedule automatic withdrawals or loans from their life insurance policy cash value, thereby providing them with regular, automated income. By using AIO, you can authorize Pacific Life to automatically deposit your distribution checks directly into your bank account on a regular basis. The service is simple. You can request either a fixed amount or an amount based on a fixed duration. Your policy loans or partial withdrawals will be calculated for you after every policy anniversary.
Convenient. Flexible. Simple. AIO gives you the freedom that comes with knowing that your supplemental income is in your account whether you are traveling the world or enjoying a peaceful retirement at home.
The Benefits of Having AIO at Work for You:
- You can have the confidence that comes with knowing that you are planning for supplemental
income during your retirement on a tax-favored basis.††
- You do not have to remember to make an annual request.
- You have the convenience of monthly electronic deposits to your bank account.
- Any earnings in your policy's accumulated value will still grow tax deferred.
Applying for AIO is Easy:
Complete the AIO Request Form and choose between the following supplemental income options:
- Fixed Amount or Fixed Duration
- Monthly or Annual Distribution
- Check or Electronic Deposit
Pacific Life will respond with an Agreement Form that confirms:
- Your AIO Distributions
- The Start Date
- Program Rules and Assumptions
Sign the Agreement, return it to Pacific Life and begin receiving your supplemental income from policy loans or withdrawals. It’s that simple.
AIO Program Rules and Exceptions:
- The life insurance policy must be at least seven years old.
- The policy's net Accumulated Value at time of request must be at least $50,000.
- The program may not be available with all of our products. Contact your Pacific Life representative.
- You may discontinue your participation in the AIO program at any time.
- To remain in the AIO program, policyowners cannot take policy withdrawals and/or loans other than those made as part of the program.
- If you choose to receive a maximum distribution over a selected duration (example: 20 years), Pacific Life will notify you, following each policy anniversary, as to the amount* of the next year’s policy loans/withdrawals.
- If you select the fixed amount option (example: $1,000 per month), Pacific Life will notify you, following each policy anniversary, as to how long we anticipate your policy loans/withdrawals will last.*
For complete information about Pacific Life’s variable universal life insurance products, including charges, expenses, and limitations, contact your registered representative or Pacific Life for prospectuses. Read the prospectuses carefully before investing or sending money. 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. The federal and state income tax laws in this area are complex and subject to change. Neither Pacific Life nor its representatives give legal or tax advice. Consult your attorney or tax advisor for complete up-to-date information concerning federal and state tax laws in this area.
† Withdrawals and policy loans may reduce policy values and benefits.
†† For a life insurance policy that is not a Modified Endowment Contract as defined in IRC Sec. 7702A: Withdrawals in the first 15 policy years may be taxable under IRC 7702(f)(7)(B); after15 years, withdrawals up to policy tax basis are not taxable; and policy loans are not taxable provided that the policy remains in force until the insured dies.
*Pacific Life will determine the policy distribution amount/duration by generating an in force illustration, using agreed upon hypothetical rate of returns and a cash value target at maturity. Actual performance of the investment options can effect your policy distribution amount/duration.
MKTG-115 6/01
Policy No.'s 88-52, 93-55, 98-52, 98-52M
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