Client Guide. Pacific Income Term Life Insurance. Pacific Life Insurance Company PIT-2

Transcription

1 Client Guide Pacific Income Term Life Insurance PIT-2 Pacific Life Insurance Company

2 What Matters Most Your Family. Your Business. Your Dreams Secure Tomorrow by Insuring Today. Your income. Your family relies on it and your plans for tomorrow depend on it. The house you live in, the car you drive, the college your children will attend, the vacation home you ve all dreamt about... All of your plans for the future rely on the earning power you wield during your working years. Life insurance from Pacific Life Insurance Company can help protect what matters most to you. 1 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.

3 A Fresh Approach to Term Insurance Pacific Income Term 1 is designed to provide income-protection when you need it most: during your working years. Best yet, the affordable premiums provide cost savings and convenience during the years you re working hard to provide for your family and save for retirement. Guaranteed Monthly Income Protection to Age 65 Pacific Income Term provides income protection through a death benefit that is paid monthly until the end of the Level Premium Period or a minimum of 60 months. The Level Premium Period is the longer duration of the insured s age 65 or 10 years from issue date. 2 See below for examples. Coverage and Monthly Income Death Benefit Payment Examples: Example #1 Example #2 Insured s Issue Age: 36 years old 70 years old Level Premium Period: To insured s age Years from Issue Insured s Death Age: 40 years old 64 years old 71 years old 79 years old Monthly Income Death Benefit Paid to Beneficiary until: Insured s Age 65 (25 years of monthly payments) 60 months from insured s death (Guaranteed Minimum) 10th Policy Year from Issue (9 years of monthly payments) 60 months from insured s death (Guaranteed Minimum) Competitive Premiums Pacific Income Term is an affordable form of term insurance that offers level premiums throughout the Level Premium Period. Six risk classes provide opportunities for additional cost savings, depending on your health and tobacco use. Rates also vary by age, gender, and Monthly Income Death Option Benefit elected. Why Pacific Income Term Insurance? Pacific Income Term offers the following advantages: e Income-replacement protection during your working years. * e Structured Monthly Income Death Benefits in an amount you choose. e Affordable premiums. 1 Pacific Income Term is known in the contract as Monthly Benefit Term Life Insurance. Policy Form #P10IRT. 2 After the Level Premium Period, coverage is annually renewable up to age 95. Premiums increase annually after the Level Premium Period. * Pacific Income Term is available to applicants aged (In Washington, issue ages ) It pays a Monthly Income Death Benefit for the greater of to age 65, 10 years from issue date, or 60 monthly payments. 2

4 Protect what matters most: your promises, your lifestyle, your dreams for the future. Multiple Ways to Use It This coverage is ideally suited for replacing the primary income earner s wages in young families. However, its uses are as diverse as you are. Consider using Pacific Income Term to help your beneficiaries: e Continue paying mortgages, car payments, and other large debt obligations. e Maintain family s current standard of living. e Structure a sustainable income stream for dependents. e Meet business loans or other ongoing business financial obligations. 3

5 Choose the Monthly Income Benefit Choose the income-replacement benefit that s right for your family s needs. Any monthly amount is available, up to $50,000 per month (see chart below). You can choose either a fixed monthly benefit or one that increases by 3% each policy anniversary. No matter which option you choose, your monthly income benefit may receive a Guaranteed Benefit Adjustment, which may increase your monthly income benefit if your death occurs toward the end of the Level Premium Period. Once you choose a Monthly Income Death Benefit, it is set and cannot be changed. However, if you find that you need a greater monthly benefit as time goes by, you may apply for another Pacific Income Term policy. Choose a Benefit Level Monthly Income Death Benefit e Minimum: $2,000/month e Maximum: $50,000/month** 3% Increasing Monthly Income Death Benefit* e Minimum $2,000/month e Maximum: $35,000/month** A portion of each monthly income benefit may be treated as reportable income to the beneficiary. * Monthly benefits increase by 3% on every policy anniversary from issue to end of Benefit Payment Period. ** The Maximum Initial Monthly Income Benefit is $15,000/month if the Premium Waiver Rider (Form #R08TPW) 3 is elected. When Benefit Payments Start Your benefit payment start date will correspond with the monthiversary of the policy following the insured s death. The Monthly Income Death Benefit will be paid to the longer of: insured s age 65 or 10 years from issue date, with a minimum of 60 months. Payments will not begin until Pacific Life Insurance Company receives proof of the insured s death, at which point any previous amounts due will be paid to the beneficiary, with interest, as state-required. 3 Riders will likely incur additional charges and are subject to state availability, restrictions and limitations. When considering a rider, request a policy illustration from your insurance professional to see the rider s impact on your policy s values. 4

6 Competitive Premiums and Flexible Options Fixed Premiums for the Level Premium Period Simplify your planning by knowing up-front what your policy will cost you for its duration. Premiums are guaranteed to be level during the Level Premium Period (the later of the insured s age 65 or 10 years from policy issue). Afterwards, premiums will increase annually up to the insured s age 95, along with each optional annual policy renewal. Flexible Payment Schedules As a convenience, you can choose to pay your premium monthly, quarterly, twice per year, or once per year. Annual payments are the most cost-effective form. More frequent payment methods will be slightly greater. No matter which payment option you select, you can benefit from the convenience of automating your premium payments through our electronic funds transfer service. Pacific Income Term provides you with death benefit protection at a competitive price. In addition to the peace of mind that life insurance can offer, this product is backed by the financial strength of Pacific Life Insurance Company, one of the largest and most respected life insurance companies in the industry. Optional Riders 4 You can customize your Pacific Income Term coverage with the following optional riders, subject to certain restrictions: Accelerated Living Benefit Rider (Form #R10ALB) This optional rider lets you access a portion of the death benefit in advance should you become terminally ill, with a life expectancy of 12 months or less. 5,6 Premium Waiver Rider (Form #R08TPW) Your premiums would be waived if you are disabled before age 65 after a waiting period of 180 days. If disabled before age 60, and the disability continues beyond age 65, premiums are waived for the remainder of the policy s duration without having to provide proof of continuing disability. If disabled between the ages of 60 and 65, premiums are waived to age 65 or at least two years, whichever is longer. 4 Riders will likely incur additional charges and are subject to state availability, restrictions and limitations. When considering a rider, request a policy illustration from your insurance professional to see the rider s impact on your policy s values. 5 Note that this rider is not available on term products in PA. In WA, and MA, the rider allows accelerated payments if life expectancy is 24 months or less. 6 Benefits are subject to state requirements, may be subject to taxation, and may impact Medicaid benefits. Clients should consult their legal advisors for more information. 5

7 My Account At Pacific Life, we want to make owning one of our life insurance policies as convenient and efficient as possible. One way we accomplish this goal is through our Policyowner Web site, My Account. By logging onto My Account through you can: e Access your policy information e Request forms e Get answers to frequently asked questions The Web site is available 24 hours a day, 7 days a week, and 365 days a year. About Pacific Life Offering insurance since 1868, Pacific Life provides 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. Pacific Life also counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit Pacific Life online at Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of April 2009 is compiled by Pacific Life using the 2009 FORTUNE 500 list. Pacific Life The Power to Help You Succeed. 6

8 This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life Insurance Company, its distributors and their 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. Pacific Life Insurance Company Newport Beach, CA (800) Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product and rider availability and features may vary by state. Product and rider guarantees are backed by the financial strength and claims-paying ability of Pacific Life Insurance Company. Non-guaranteed elements are not guaranteed by definition. As such, Pacific Life Insurance Company reserves the right to change or modify any non-guaranteed element. This right to change non-guaranteed elements is not limited to a specific time or reason. Pacific Life Insurance Company s individual life insurance products are marketed exclusively through independent third-party insurance professionals, which may include bank affiliated entities. Some selling entities, which may include bank affiliated entities, may limit availability of some optional riders based on their client s age and other factors. Your insurance professional can help you determine which optional riders are available and appropriate for you. Insurance Professional s Name State Insurance License Number (or affix your business card) Investment and Insurance Products: Not a Deposit Not FDIC Insured Not Insured by any Federal Government Agency No Bank Guarantee May Lose Value Policy Form #P10IRT PIT /10