Pacific Life Announces the First Performance Factors (2.46 and 4.18) for Its Best-Selling Indexed Universal Life Insurance Product
November 27, 2018 by Pacific Life
ALISO VIEJO, Calif. – November 15, 2018: Pacific Life Insurance Company has announced the calculation of the first Performance Factors for its industry-leading1 indexed universal life insurance product, Pacific Discovery Xelerator IUL (PDX).2The PDX product provides death benefit protection and features a non-guaranteed Performance Factor that may multiply the interest credited to the indexed accounts beginning in the third policy year.
“PDX was designed to deliver client value and upside potential in a time of challenging interest and growth cap rate environments,” says John O’Donnell, vice president of product design, life insurance division at Pacific Life. “The policyowner may pay higher policy charges with PDX, but those charges are used to support the Performance Factor, which may multiply the indexed interest credited to the policy. In effect, our innovative product design has allowed us to deliver competitive interest crediting potential, even at today’s lower current growth cap rates.”
The first Performance Factor calculated on a PDX policy is 2.46, which means it will multiply any positive index-based interest crediting rate by 2.46 at segment maturity. It was promptly followed by another Performance Factor calculated on another PDX policy at 4.18.3
According to O’Donnell, “If the client’s indexed interest credit met the then-current growth cap rate of 10 percent, those segments would earn respective indexed crediting rates of 24.60 percent and 41.80 percent at segment maturity.”
Every PDX policyowner will have numerous Performance Factors throughout the life of their PDX policy, but each Performance Factor is guaranteed to be no less than 1.00. The current Performance Factor is formula-driven and will vary based on a number of criteria, including death benefit option, face amount, accumulated value, indexed account, policy year, and the insured’s issue age, sex, and risk class.
“We are proud to demonstrate the value of our innovative product design for our policyowners,” says O’Donnell. “We believe it demonstrates our long-term perspective and commitment to building life insurance products that stand the test of time.”
Policyowners can see their PDX Performance Factors in their quarterly and annual statements available online at www.PacificLife.com or by request from their life insurance producer.
About Pacific Life
Celebrating 150 years of service, 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.4 For additional company information, including current financial-strength ratings, visit www.PacificLife.com.
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.
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.
This product is not available in New York.
1. Source: Pacific Life is #1 in IUL sales, per LIMRA International Q4, 2017 and Q1-Q2, 2018 Confidential Sales Survey of Participating Life Insurance Companies. Sales rankings are based on recurring premium as measured against 85 participating companies.
2. Pacific Life Insurance Company’s Pacific Discovery Xelerator IUL (PDX IUL) indexed universal life insurance (form #P15IUL and S16PDX or ICC15 P15IUL and ICC16 S16PDX, based on state of policy issue). IUL does not directly participate in any equity or stock investments. Pacific Life reserves the right to change or modify any non-guaranteed or current elements. The right to modify these elements is not limited to a specific time or reason.
3. This reflects the actual Performance Factor (PF) calculated for two existing PDX IUL policies. The current PF is guaranteed until Segment Maturity, so if the Indexed Segment matures with a positive interest crediting rate, the resulting interest credit will be multiplied by [2.46] or [4.18] to result in the new total interest credited. Results will vary and this is no representation that your client’s policy will receive similar results. Historical returns are no guarantee of future performance.
4. Client count as of June 2018 is compiled by Pacific Life using the 2018 FORTUNE 500® list.
