NEWPORT BEACH, Calif., January 30, 2007 — On February 1, 2007 Pacific Life
Insurance Company will introduce Flexible Lifetime Income, a new Guaranteed
Minimum Withdrawal Benefit available with Pacific Life variable annuities. This feature-rich optional benefit is designed to help address the needs of retirees and the more than 77 million baby boomers just entering or planning for retirement.
Flexible Lifetime Income offers guaranteed 5 percent annual withdrawals of the protected amount for life starting at age 59½. This allows investors the flexibility to take income at the earliest age that withdrawals are typically taken from variable annuities and many retirement plans without a tax penalty.
While the 5 percent is not a guaranteed growth rate, lifetime withdrawals are guaranteed regardless of the annuity’s actual value — even if it’s zero. In addition, Flexible Lifetime Income provides upside opportunity with two ways to boost income: automatic annual step-ups that can lock in market gains or a 6 percent annual credit, available for 10 years while withdrawals are deferred. These features are designed to help investors take advantage of growth opportunities and protect them from the impact of inflation.
“Outliving retirement assets consistently ranks as one of retirees’ biggest concerns,” says Kathleen McWard, CFP®, vice president of marketing, Pacific Life. “Flexible Lifetime Income guarantees you an annual income stream that can’t be outlived. Plus, you can control how to use Flexible Lifetime Income to suit your retirement strategy. Unlike annuitization which locks in a payment stream, with Flexible Lifetime Income you decide when to begin taking withdrawals and you can stop and restart them at any time. These features are enormously appealing to baby boomers and reflect Pacific Life’s commitment to helping them face retirement with confidence.”
Flexible Lifetime Income is available with a Pacific Life variable annuity for an
additional annual cost of 0.65 percent of the amount being protected. Clients must be allocated to a Portfolio Optimization model, Pacific Life’s strategic asset allocation service designed to provide diversification among up to 16 asset class styles. Portfolio Optimization combines the Nobel Prize winning investment methodology (through Ibbotson Associates, Inc. a wholly owned subsidiary of Morningstar Inc.), the expertise of some of the nation’s leading investment managers, and 139 years of experience from Pacific Life. Working together, these elements make a Pacific Life variable annuity, with Flexible Lifetime Income, a dynamic alternative for investors looking to maximize their retirement income and make it last — no matter how long they live.
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 prospectuses available from your registered representative or by calling (800) 722-2333. Read the prospectuses carefully before investing.
Guarantees are subject to Pacific Life’s claims-paying ability and do not protect the value of the variable investment options. 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. Flexible Lifetime Income withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. Flexible Lifetime Income is known as "5% Guaranteed Withdrawal Benefit" in the contract rider.
Asset allocation matches risk to a portfolio. It does not guarantee future results, assure a profit or protect against loss. 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.
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 100 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 500® list as of April 2006.
Variable annuities issued by Pacific Life Insurance Company are distributed by Pacific Select Distributors, Inc. (member NASD & SIPC), a subsidiary of Pacific Life, and are available through licensed third party broker/dealers.