Pacific Life Annuity Information
Pacific Life is a full service insurance company that offers a wide range of insurance products designed to address every aspect of a person’s life. In business since 1868, the company has proved to be a stable force in the life insurance industry for nearly 150 years. Pacific Life offers many different insurance products, including a broad range of annuities.
What are annuities and what purpose do they serve?
An annuity is an investment policy that creates a retirement income for the policy holder. An annuity is a way to save money for your retirement in a tax deferred fashion. It is also a way to create a stream of guaranteed income for the rest of your life. Most companies no longer offer pensions, so investing into an annuity is a way to replace this form of retirement income.
What types of annuities does Pacific Life offer its clients?
Pacific life annuities come in four major categories. Fixed or Variable annuities and Immediate or deferred annuities.
A fixed annuity is a policy that offers a guaranteed amount of interest off of your investment. This rate will be guaranteed for at least 10 years and will adjust yearly after the initial rate. You are guaranteed, however, that your new interest rates will never be below your initial interest rate. It is a safe investment that allows the owner to budget their income because the payment will remain the same each month.
A variable annuity is a different type of investment. This annuity is a little bit riskier since the monthly payments are based on the amount of interest your account generates. With market fluctuations to consider, this type of plan could pay very high one month, and very low the next.
A deferred annuity is an annuity that you purchase to use at a later date. For example, if you are younger than retirement age you can purchase an annuity that will begin to pay you after you pass the age of 59 ½ or when you retire. This allows you to build up interest in your account, a plus if you purchased a variable annuity.
An immediate annuity is a type of annuity that once purchased will begin to make payments approximately 30 days after the policy began. This is a great opportunity for guaranteed income for people already at retirement age.
