Pacific Life annuities provide buyers with a stream of income in the future. There are several different types of annuities from Pacific Life. If you are considering buying one, read this important information first.
Pacific Life Company Reputation
The company has a good reputation for helpful customer service agents who are based in the United States. Although Pacific Life has been around for a long time, most of its in-force business is older. This exposes the company to volatility in equity markets. It faces risks with its variable annuity, which is also its most popular product. However, the company does not have a bad overall reputation. It is important to note that it is not listed with the Better Business Bureau.
Value For Investment
One of the drawbacks of Pacific Life’s annuities is the higher fees. While this may not be an obstacle for some, the costs are not ideal for the average American. Also, some annuities come with fees other than the original charge that you may not be aware of. Since they are still useful annuities for some buyers, it is important to know all of the fees and terms before signing up. Also, do not just rely on what financial advisers pitch as benefits. Do some independent research and digging.
The most common product is the variable annuity. The initial premium is fair for qualified individuals but steep for those who are non-qualified. Set aside some time to read the 132 pages of information that the company provides about this product. There are high annual fees if you choose to skip the surrender fee, which is also high. However, it is not as high as the Transamerica or Prudential fees. The main benefit over many other products is that there is no market risk. This annuity is best if you are a very conservative investor who wants income with no market risk.
Another common purchase is the index choice annuity. It also comes with higher charges and surrender fees. In addition to providing income regardless of market conditions, this annuity immediately enhances credit and offers the potential for extra growth through several strong channels. If you need a guaranteed income, are happy with single-digit returns and will not need access to money for at least a decade, this may be a good choice for you.
Complaints About Pacific Life Annuities
The main complaints about Pacific Life annuities address their fees and lower-than-expected payouts. Also, the fees associated with early withdrawals are common complaint sources. In reading most of the complaints, it is apparent that the majority of people did not pick products that were right for them. Many people were drawn in by promises of 5 percent or higher for interest crediting. No annuity company will regularly pay this much, and the caps are just adjusted to lower the amount to about one-half or less of the advertised rate.
Pros And Cons
- Guaranteed future income
- Additional growth opportunities
- Principle protection
The cons include:
- Higher premiums
- Multiple fees
- Surrender fees
For budget-conscious buyers, Pacific Life annuities may not be the best choice. When considering a Pacific Life annuity, be sure to compare all products from the company and contrast those to similar annuities from competitors. There are more affordable annuities from established companies that offer lower fees and good returns.