Pacific Index Dimension by Pacific Life Insurance

This single premium deferred fixed indexed annuities have surrender period of 7 and 10 years. The contract minimum is $25,000, maximum is $1 million.

Pacific Index Dimensions offers options to earn interest based on the movement of a U.S. based index (S&P 500®) and international-focused index (MSCI Europe Australasia Far East (EAFE)). Crediting strategies include Point-to-Point with Cap, Participation Rate and Enhanced Participation Rate. There is also a choice of 1 and 2 year index crediting periods. There are total of 13 options: 1 Fixed Account Option and 12 Index-Linked Options.

There is an optional Enhanced Lifetime Income Benefit, which is a guaranteed minimum withdrawal benefit that offers an 8% Annual Credit to the Protected Payment Base each year withdrawals are delayed, for up to ten years. It also offers age-banded withdrawals for life, and comes in Single and Joint Life options. Age-banded withdrawals for life start at 4.5% at age 59½, increasing to 6.5% at age 80 for Single Life and starting at 4.0% at age 59½, increasing to 6.0% at age 80 for Joint Life.

  • Pros:
  • Simplicity and transparency through index-linked crediting options that are based on two well-known indexes
  • An Enhanced Participation Rate option that provides an alternative crediting method to capped interest or traditional fixed-interest-rate crediting methods and offers an 8% Annual Credit to the Protected Payment Base each year withdrawals are delayed, for up to ten years.
  • Optional Guaranteed Minimum Withdrawal Benefit for lifetime income without giving up control of the asset
  • Penalty free withdrawal of up to 10% annually is permitted in 30 days after contract begins
  • Waiver of Surrender Charges if you are diagnosed with a terminal illness, confined to an accredited nursing home or a long term care facility
  • Cons:
  • Enhanced Lifetime Income Benefit has a current annual charge of 0.75% (maximum charge of 1.50%) of the Protected Payment Base.
  • Interest crediting options are based on the initial purchase payment of less than $100,000, or $100,000 and more.
  • Caps and participation rates are subject to change by the end of each term period.
  • Withdrawals before the end of the withdrawal charge period, in excess of 10%, may be subject to an MVA (market value adjustment) in addition to any applicable withdrawal charges.

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