A positive index return is credited to your contract at the end of each contract year, up to the cap. If the return is zero or negative, no interest will be credited, and there is no loss.
Cap: The maximum rate of interest that can be credited at the end of an index term.
A percentage of a positive index return, minus any spread amount, is credited as interest at the end of each index term. If the calculated return after the participation rate and spread are applied is zero or negative, no interest will be credited, and there is no loss.
Index Return x Participation Rate – Spread = Interest Credited
Participation Rate: The set percentage that determines how much of the positive index return will be credited at the end of an index term.
Spread: A percentage that is deducted after the index return is multiplied by the participation rate.
Index Lock-In Feature
When paired with the BofA Iris Index 2-Year Participation Rate option, you have the power to lock in the index price on a given day before the end of the term. The index price will remain locked until the end of the 2-year term.
Similar to the Participation Rate method, a percentage of a positive index return is credited to your contract at the end of each index term. However, with this method, the participation rate is enhanced, meaning it is greater than the rate offered through the Participation Rate method. The spread for the Enhanced Participation Rate method will typically be larger than the spread for the Participation Rate method.
Index Return x Enhanced Participation Rate – Spread = Interest Credited
If the calculated return after the enhanced participation rate and spread are applied is zero or negative, no interest will be credited and there is no loss.
Index Lock-In Feature
When paired with the BofA Iris Index 2-Year Enhanced Participation Rate option, you have the power to lock in the index price on a given day before the end of the term. The index price will remain locked until the end of the 2-year term.
When the index return is flat or positive, a declared, fixed interest rate is credited to your contract at the end of each contract year. If the return is negative, no interest will be credited, and there is no loss.
When the index return is positive after the spread is deducted, interest will be credited to the contract at the end of each contract year.
If the calculated return after the participation rate and spread are applied is zero or negative, no interest will be credited, and there is no loss.
Examples above assume $100,000 purchase payment into a fixed indexed annuity on December 31, 2011. The contract owner elects the 10-year initial guaranteed period. The Index-Linked Options shown and term, including associated cap, declared interest rates, participation rates, and spreads, remain unchanged during the period. No withdrawals are taken. Pacific Index Dimensions was first available in 2015. The S&P 500® and MSCI indexes do not include the reinvestment of dividends. Your results may vary.
With this unique feature, available for no additional cost, lock in additional growth by locking in the index price on a given day before the end of the term. The Index Lock-In Feature is available with the BofA Iris U.S. Sectors Index 2-Year Participation Rate and 2-Year Enhanced Participation Rate options.
An election may not be made until 60 days after the term beginning date and can be made only once during each index term for each available crediting option. The index price will be used to calculate the interest credited at the end of the term. Once the election is made, the Index Lock-In Feature is irrevocable and cannot be undone, even if the index price increases during the remainder of the term. Under certain scenarios, the contract may not be credited any interest at the end of the term. Before electing the Index Lock-In Feature, speak with your financial professional to assist in evaluating the index-linked option selected in the contract and when exercising this feature may be right for you.
1The BlackRock iBLD Endura® VC 5.5 ER Index is referred to as the BlackRock Endura® Index for ease of reference.
2The index is composed of USMV (the iShares Edge® MSCI Min Vol USA ETF) and SHY (the iShares® 1–3 Year Treasury Bond ETF).
All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
Pacific Life, its affiliates, their distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.
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.
Fixed indexed annuities are not securities and do not participate directly in the stock market or any index, so they are not investments.
Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits.
The S&P 500® index is a product of S&P Dow Jones Indices LLC or its affiliates (“SPDJI”) and has been licensed for use by Pacific Life Insurance Company. S&P®, S&P 500®, US 500, The 500, iBoxx®, iTraxx®, and CDX® are trademarks of S&P Global, Inc., or its affiliates (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pacific Life Insurance Company. Pacific Index Dimensions is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500® index.
The Product and its MSCI EAFE Index-Linked Options referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Products or any index on which such Products are based. The Policy Contract contains a more detailed description of the limited relationship MSCI has with Pacific Life Insurance Company and any related products.
BlackRock, Inc. and its affiliates (“BlackRock”) is not the issuer or producer of any annuity product associated with Pacific Life Insurance Company, and BlackRock has no responsibilities, obligations or duties to investors in such products. The BlackRock iBLD Endura® VC 5.5 ER Index (hereinafter, the “BlackRock Endura® Index”) is a product of BlackRock Index Services, LLC, and has been licensed for use by Pacific Life Insurance Company. BLACKROCK, BlackRock Endura Index, and the corresponding logos are registered and unregistered trademarks of BlackRock. While Pacific Life Insurance Company may for itself execute transactions with BlackRock in or relating to the BlackRock Endura Index in connection with its annuity products, investors acquire all such annuity products from Pacific Life Insurance Company and neither acquire any interest in the BlackRock Endura Index nor enter into any relationship of any kind with BlackRock upon investing in such products. Pacific Life Insurance Company annuity products are not sponsored, endorsed, sold, or promoted by BlackRock. BlackRock makes no representation or warranty, express or implied, to the owners of any Pacific Life Insurance Company annuity product or any member of the public regarding the advisability of investing in such products, nor does it have any liability for any errors, omissions, or interruptions of the BlackRock Endura Index. BlackRock shall not be liable in any way to the issuer, investors, or any other party in respect of the use or accuracy of the BlackRock Endura Index or any data included therein.
To derive back-tested data for the BlackRock Endura® Index, performance for periods longer than a year has been annualized using a geometric mean. Index returns are price-based total exchange-traded fund (ETF) returns (net of management fees) less 3-month LIBOR; for ETFs not in existence during the timeframe referenced, market and proxy benchmark returns are used which take index total returns less 3-month LIBOR. Proxy benchmarks are indexes that have similar historical exposures and characteristics to the ETFs they represent. Sharpe ratio uses the index’s standard deviation and its excess return (difference between the index’s return and the risk-free return of 3-Month LIBOR benchmark rate) to determine the reward per unit of risk. Back-tested data is calculated by Interactive Data Pricing and Reference Data LLC, the calculation agent of the BlackRock Endura® Index.
BofA Securities Inc. and its Affiliates (“BofAS”) indexes and related information, the name “BofAS,” and related trademarks, are intellectual property licensed from BofAS to Pacific Life Insurance Company (“Licensee”). Neither the Licensee nor any fixed indexed annuity (“Product”) is sponsored, operated, endorsed, sold, or promoted by the BofAS. Obligations to make payments under any Products are solely the obligation of Licensee pursuant to the term of the contract between Licensee and policyholder, and are not the responsibility of Licensor. Licensor’s indexes and related information, the name of Licensor, and related trademarks may not be copied, used, or distributed without BofAS’s prior written approval. The Products have not been passed on as to their legality or suitability, and are not regulated, issued, endorsed, sold, guaranteed, or promoted by BofAS. BofAS’s only relationship to Licensee is the licensing of certain trademarks and trade names and the Index or components thereof, and BofAS is not a party to any transaction contemplated herein. BofAS MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO THE INDEXES, ANY RELATED INFORMATION, THE TRADEMARKS, OR THE PRODUCT(S) (INCLUDING WITHOUT LIMITATION, THEIR QUALITY, ACCURACY, SUITABILITY AND/OR COMPLETENESS).
No actual financial product that allowed tracking of the performance of the BofA Iris U.S. Sectors Index was possible before 5/27/2022. Any hypothetical “back-tested” information provided herein is illustrative only and determined by retroactive application of a back-tested model, itself designed with the benefit of hindsight based on certain data and assumptions and estimates (not all of which may be specified herein and which are subject to change without notice). These back-tested, hypothetical, historical annualized Index returns have inherent limitations. The results obtained from different models, assumptions, estimates and/or data may be materially different and might produce significantly different results and may prove to be more appropriate from the results presented herein. Actual performance will vary, perhaps materially, from the performance set forth herein. The performance of the Index does not include fees or cost of any financial instrument referencing the Index. No representation is made by Licensors that in the future the Index will have the returns illustrated herein. Hypothetical “back-tested” information should not be considered indicative of the actual results that might be obtained from a financial product or participation in a financial instrument or transaction referencing the Indexes. Licensors expressly disclaim any responsibility for (i) the accuracy or completeness of the models, assumptions, estimates, and data used in deriving the hypothetical “back-tested” information, (ii) any errors or omissions in computing or disseminating the hypothetical “back-tested” information, and (iii) any uses to which the hypothetical “back-tested” information may be put by any recipient of such information.
The indexes are not available for direct investment.
Pacific Index Dimensions (ICC15:30-1401, 30-1401ID, 30-1401MA), including optional riders and endorsements (ICC15:20-1406, 20-1406, 20-1406-2, ICC15:20-1404, 20-1404, 20-1404-2, ICC15:20-1405, 20-1405, 20-1405-2, ICC17:20-1707, ICC16:20-1504, 20-1504, ICC21:20-1407, ICC21:20-1408, 15-1403MA, 15-1403), are issued by Pacific Life. State variations may apply.
Pacific Life Insurance Company (Newport Beach, CA) is licensed to issue insurance products in all states except New York. Product availability and features may vary by state. Fixed annuity products are available through licensed third parties.
FAC1231-1022H
No bank guarantee • Not a deposit • Not FDIC/NCUA insured • May lose value • Not insured by any federal government agency