SOURCE: Pacific Life

Pacific Life

September 17, 2014 13:44 ET

Pacific Life Launches Pacific Secure Income

A New Fixed, Deferred Income Annuity to Lock In Guaranteed Income for the Future

NEWPORT BEACH, CA--(Marketwired - Sep 17, 2014) - The question, "How can I provide my client with a predictable future stream of lifetime retirement income?" is common among financial professionals as they develop retirement income strategies. Pacific Life addresses this question by adding Pacific Secure Income(SM), a deferred income annuity, to its suite of fixed annuity products.

Pacific Secure Income can provide clients a pension‐like stream of guaranteed income that begins at a future date by using a portion of their assets now to guarantee income later in retirement. The longer clients delay taking income, the higher their future annuity income payments will be.

Clients can choose to purchase with a single purchase payment, or build income at a pace that is comfortable for them through multiple purchase payments. Either way, they lock in a predictable, steady income stream at a future date for one life, two lives if they are spouses, or for a specified time period.

Because life can be unpredictable, Pacific Secure Income provides flexibility by offering features that allow clients to take income sooner than originally planned, or defer and receive income later. Also, there may be two ways to access a larger portion of guaranteed income payments after income payments begin -- either through accelerating monthly income payments or by making a lump‐sum withdrawal.

For clients concerned about the possibility of losing money in an income annuity when they die, Pacific Secure Income has several annuity income options that offer a 100% return of purchase payment(s) death benefit to loved ones if the client should pass away before income begins. It also makes available many options that offer a return of remaining purchase payment(s) or remaining guaranteed income payments if death occurs after income payments begin.

"By using a portion of their retirement assets to purchase Pacific Secure Income, clients can perhaps help address the cost of basic living expenses, and are then able to invest their remaining assets to help meet other objectives," says Christine Tucker, vice president of marketing for Pacific Life's Retirement Solutions Division. "Increasingly, clients want to build an active retirement -- one in which they feel free to reinvent themselves as they pursue hobbies, interests, and even new careers. Pacific Secure Income can help clients realize that an active lifestyle today doesn't have to mean worrying about running out of income tomorrow."

Pacific Secure Income is the latest in Pacific Life's continually expanding array of multiple‐product solutions for retirement income strategies. For more information, financial professionals can contact a Pacific Life consultative wholesaler at (800) 722‐2223 or visit

About Pacific Life
Offering insurance since 1868, Pacific Life provides 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. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2014 is compiled by Pacific Life using the 2014 FORTUNE 500® list.

Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax.

Qualified contracts, including traditional IRAs and Roth IRAs, are eligible for favorable tax treatment under the Internal Revenue Code (IRC). Certain payout options and certain product features may not comply with various requirements for qualified contracts, which include required minimum distributions and substantially equal periodic payments under IRC Section 72(t). Therefore, certain product features, including the ability to change the Annuity Payment Start Date and exercise withdrawal features, may not be available or may have additional restrictions. The Income Payment Acceleration feature is available but may be considered a modification to the 72(t) program and may subject the series of 72(t) withdrawals, including any prior withdrawals, to an additional 10% federal tax. In addition, certain payout options may not be available for qualified contracts.

Income from annuity payments received from Pacific Secure Income cannot be aggregated or combined with income from other IRA contracts/assets for purposes of satisfying IRS required minimum distributions.

For Roth IRAs, upon the Roth IRA owner's death, distributions to the designated beneficiaries may be subject to the required minimum distribution rules. If the designated beneficiary is not the spouse, the beneficiary may be required to take a lump sum payment of the present value of the guaranteed payments if a death benefit becomes available. If the designated beneficiary is the surviving spouse and elects to treat the Roth IRA as his or her own, then the 5‐year waiting period may restart for the surviving spouse.

Nonqualified contracts may not be subject to the various requirements for qualified contracts, but are still subject to an additional 10% federal tax for annuity payments, withdrawals, and other distributions prior to age 59 1/2. While there are exceptions to this additional federal tax under Section IRC 72(q), certain payment options may not comply. The Income Payment Acceleration feature may be considered a modification to the 72(q) program and may subject the series of 72(q) withdrawals, including any prior withdrawals, to an additional 10% federal tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. 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. Insurance product and guarantees, including optional benefits and any fixed crediting rates or annuity payout rates, are backed by the financial strength and claims‐paying ability of the issuing insurance company. They are not backed by the independent third party from which this annuity is purchased, including the broker/dealer, the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims‐paying ability of the issuing insurance company.

Fixed annuities issued by Pacific Life (Newport Beach, CA) are available through licensed, independent third parties.

Documents and/or Photos available for this release:

To view supporting documents and/or photos, go to and enter Release ID: 378066

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