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Deferred Fixed Annuity with Guaranteed Withdrawal Benefit


Pacific Life Insurance Company has just released a new deferred fixed annuity that is a little different from the rest.  The Pacific Income Advantage not only offers fixed annuity benefits, but it also has the option for a Guaranteed Withdrawal Benefit with yearly crediting.  This information comes from a Pacific Life press release in the Digital Journal, “Pacific Life Offers Financial Advisors a New and Innovative Option for Building Retirement Income: Pacific Income Advantage.”  Some of the popular benefits that draw people to deferred fixed annuities are principal protection, a guaranteed interest rate, tax deferral, and death benefits to leave to your heirs.  The Pacific Income Advantage offers people these benefits and throws a little something additional in there as well.

This new annuity has a Guaranteed Withdrawal Benefit built in to the contract.  There is an added cost when you choose the GWB with your Pacific Income Advantage.  Not only do you get guaranteed income with this annuity, you also receive an annual 6% credit while you are deferring your income.  Your annual credit can be taken for ten years, if you defer your income stream for that long.  Someone purchasing an annuity for $100,000 would increase their protected payment base to $160,000 simply by leaving their money in their annuity for ten years.

Pacific Life was looking to add another dimension to their popular fixed annuities and this was a good time to do so.  Fixed annuity sales had sharp increases in the third quarter because of rising interest rates.  The Pacific Income Advantage guarantees these higher interest rates and offers tax-deferred interest compounding.  These guarantees take away the stress of fluctuating markets and short-term interest rate changes.  You also don’t have to worry about paying taxes on your investment while you are growing your money.  By adding the Guaranteed Withdrawal Benefit to your fixed annuity, you are able to guarantee lifetime income.  Your annuity will continue earning interest even once you start receiving income payments.  Pacific Life’s newest annuity adds to their current line of products and will work for some investors.  If you think this might be the right fixed annuity for you, speak with an expert for more information.

Written by Rachel Summit

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