Pacific Life Enters the Registered Index-Linked Annuity Market
Pacific Life has made a significant move by launching its new registered index-linked annuity (RILA) called Pacific Protective Growth. This innovative product is designed to provide clients with opportunities to track market indexes while also implementing protective measures during market downturns. The introduction of Pacific Protective Growth marks a milestone as it brings the First Trust Growth Strength Net Fee Index into the spotlight, alongside a unique crediting strategy aimed at enhancing retirement savings.
Features of Pacific Protective Growth
Nick Weber, the vice president of annuity product development at Pacific Life, emphasized the careful planning and unique features of Pacific Protective Growth. He stated that the product has been developed to provide a mix of compelling features currently available in the market. This combination brings a fresh approach to crediting strategies and protected income, aiming to create a competitive option among other annuities.
Growth in the RILA Market
The registered index-linked annuity market is seeing impressive double-digit growth, fueled by increasing sales through independent broker-dealers and bank distribution channels. Sales forecasts predict that RILA sales could surpass $50 billion, highlighting a growing demand for products that offer a balance between growth potential and risk management.
Investment Strategies Available
Pacific Protective Growth offers five indexes, which include two that track index-based exchange-traded funds (ETFs). Clients have access to a range of crediting strategies, among which are:
- The Tiered Participation Rate crediting strategy: This innovative strategy acts as a multiplier for index performance and offers interest credited at a rate higher than the actual index return.
- The Performance Mix crediting strategy: Clients can select an option that prioritizes the best-performing index from the previous six years, enhancing growth opportunities.
These strategies allow clients to not only aim for growth but also to manage their risks effectively.
Income Guard Option
For those who are not only interested in accumulation but also in generating income, Pacific Protective Growth includes the Income Guard feature. This optional lifetime withdrawal benefit enables annuity owners to potentially increase their income by postponing withdrawals for as long as ten years. Additionally, clients can reset their income base each year if their annuity value exceeds the previous year's value.
Secure Future Income
The Income Guard feature ensures that future guaranteed lifetime income will never decrease due to market fluctuations, setting Pacific Protective Growth apart as one of the few RILAs that provide both accumulation and protected income in one product.
Supporting Financial Professionals
Pacific Life is committed to supporting financial professionals with tools that help customize Pacific Protective Growth to meet each client's unique needs. This includes an online tool for designing accumulation and protection options tailored to individual growth goals and risk tolerance.
Performance Notifications
To enhance decision-making, Pacific Life offers digital notifications of performance, which are crucial for evaluating the success of different strategies over time.
A Strong Brand and Product Offering
Kevin Kennedy, Chief Sales and Marketing Officer of Consumer Markets at Pacific Life, expressed excitement about the company’s entry into the RILA market. He believes the unique opportunities offered by Pacific Protective Growth, along with brand recognition and a notable reputation as one of the highest-rated insurance carriers, will make this product an attractive consideration for clients and financial professionals alike.
About Pacific Life
Pacific Life has a rich history of providing a diverse range of products and services that cater to both individual and corporate clients. Their portfolio includes life insurance and annuity solutions, as well as mutual funds designed to ensure financial security for current and future generations. With nearly 160 years of experience, Pacific Life continues to hold its status as a Fortune 500 company, focused on delivering value to its policyholders.
Frequently Asked Questions
What is Pacific Protective Growth?
Pacific Protective Growth is a registered index-linked annuity that offers opportunities to track market indexes with protective measures during downturns.
What unique features does Pacific Protective Growth offer?
It features two distinct crediting strategies, including the Tiered Participation Rate and Performance Mix strategies, along with an optional Income Guard benefit.
How does the Income Guard work?
Income Guard allows annuity owners to increase their future income while ensuring that their guaranteed lifetime income does not decrease due to market losses.
Who can benefit from Pacific Protective Growth?
This product is beneficial for individuals looking for a balanced investment option that incorporates both growth potential and risk management.
What support does Pacific Life offer to financial professionals?
Pacific Life provides financial professionals with tools to customize the product for their clients' needs and offers performance notifications to assist in strategic planning.
