Pacific Life's Collaboration with Bank of America Introduces a New Lock‐In Feature
Clients Can Lock In Gains at Any Time with New Two‐Year BofA Iris U.S. Sectors IndexSM Options
NEWPORT BEACH, Calif. — Nov. 1, 2022 — To help address market volatility, Pacific Life recently announced that it has enhanced its Pacific Index Dimensions® fixed indexed annuity. The product now includes five new crediting options linked to the BofA Iris U.S. Sectors Index, two of which can be used with the Index Lock‐In Feature that gives clients the ability to lock in market gains.
“Pacific Index Dimensions is already designed to give clients growth potential while protecting their principal from loss. Now, with the addition of these new BofA Iris index‐linked options and the Index Lock‐In Feature, we’re able to offer a new way to grow future income and potentially avoid the impact of market downturns,” said Kevin Kennedy, chief marketing officer and senior vice president of sales at Pacific Life. “We’re especially excited about the 2‐Year Participation Rate and 2‐Year Enhanced Participation Rate options, as they allow clients to lock in gains at any time during that two‐year crediting term.”
“Most index options make you wait until the end of the crediting term to lock in your performance. With this lock‐in feature, if clients experience favorable performance at a particular time and think the market may go down later, they can lock in that performance and keep it until the end of the crediting term,” said David Lautenschlager, vice president of pricing and product design at Pacific Life. Once locked in, the index price cannot be changed. It will be used to calculate the index‐linked interest credited to the account at the end of the two‐year term.
“The BofA Iris U.S. Sectors Index applies natural language processing to analyze earnings‐call transcripts and is our first volatility‐targeted index utilizing this technology,” said Gabriel Lettieri, head of Americas Insurance Solutions at Bank of America. “Our collaboration with Pacific Life will provide an innovative strategy to clients throughout the U.S.”
The BofA Iris U.S. Sectors Index is designed to smooth out the market’s ups and downs by using artificial intelligence (AI) to analyze data from companies listed on the domestic stock exchanges to guide its U.S. equity sector allocation. Using rules‐based, natural language processing (NLP) to scrutinize data from quarterly earnings‐call transcripts of up to 3,000 companies every quarter, the index targets 5% annualized volatility and rebalances among equity sectors, U.S. Treasurys, and cash.
In addition to the 2‐Year Participation Rate and 2‐Year Enhanced Participation Rate crediting options, Pacific Index Dimensions also includes three other options that will use the BofA Iris U.S. Sectors Index: 1‐Year Point‐ to‐Point with Cap, 1‐Year Participation Rate, and 1‐Year Enhanced Participation Rate.
Pacific Index Dimensions is available through financial professionals affiliated with independent marketing organizations and through the Producer Alliance program. Contact Pacific Life at (800) 722‐2333 or visit SecureYourFuture.PacificLife.com for more information.
About Pacific Life
For more than 150 years, Pacific Life has helped millions of individuals and families with their financial needs through a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Whether your goal is to protect loved ones or grow your assets for retirement, Pacific Life offers innovative products and services that provide value and financial security for current and future generations. Pacific Life counts more than half of the 100 largest U.S. companies as its clients and was named one of the 2022 World’s Most Ethical Companies® by the Ethisphere Institute. For additional company information, including current financial‐strength ratings, visit www.PacificLife.com.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2022 is compiled by Pacific Life using the 2022 FORTUNE 500® list.
2022 World’s Most Ethical Companies® is based on the Ethisphere Institute’s Ethics Quotient®. “World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC.
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle‐market businesses, and large corporations with a full range of banking, investing, asset management, and other financial and risk‐management products and services. The company provides unmatched convenience in the United States, serving approximately 67 million consumer and small‐business clients with approximately 4,000 retail financial centers, approximately 16,000 ATMs, and award‐winning digital banking with approximately 55 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking, and trading across a broad range of asset classes, serving corporations, governments, institutions, and individuals around the world. Bank of America offers industry‐leading support to approximately 3 million small‐business households through a suite of innovative, easy‐to‐use online products and services. The company serves clients through operations across the United States, its territories, and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
An election may not be made until 60 days after the term beginning date and can be made only once during each index term for each available crediting option.
The index price will be used to calculate the interest credited at the end of the term. Once the election is made, the Index Lock‐In Feature is irrevocable and cannot be undone, even if the index price increases during the remainder of the term. Under certain scenarios, the contract may not be credited any interest at the end of the term.
Pacific Index Dimensions is not a security and does not participate directly in the stock market or any index, so it is not an investment.
Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products.
BofA Securities Inc. and its Affiliates (“BofAS”) indexes and related information, the name “BofAS,” and related trademarks, are intellectual property licensed from BofAS to Pacific Life Insurance Company (“Licensee”).
Neither the Licensee nor any fixed indexed annuity (“Product”) is sponsored, operated, endorsed, sold, or promoted by the BofAS. Obligations to make payments under any Products are solely the obligation of Licensee pursuant to the term of the contract between Licensee and policyholder, and are not the responsibility of Licensor. Licensor’s indexes and related information, the name of Licensor, and related trademarks may not be copied, used, or distributed without BofAS’s prior written approval. The Products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofAS. BofAS’s only relationship to Licensee is the licensing of certain trademarks and trade names and the Index or components thereof, and BofAS is not a party to any transaction contemplated herein. BofAS MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDEXES, ANY RELATED INFORMATION, THE TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
The indexes are not available for direct investment.
Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.
Pacific Life Insurance Company (Newport Beach, CA) is licensed to issue insurance products in all states except New York. Product availability and features may vary by state. Fixed annuity products are available through licensed third parties.
# # #