What We Will Cover in this Annuity Review
In this annuity review, we will be covering the following details regarding the Pacific Life Frontiers ll Fixed Deferred Annuity:
- Product type
- Current rates
- Realistic long-term return expectations
- How this annuity is best used
- How it is most poorly used
Annuities can be complex. That’s where having an Annuity Investigator who loves math comes in.
We make the complex, simple.
If you’ve been considering the purchase of an annuity because you want to ensure that you won’t run out of income in the future – especially if you live a nice, long life – then the Pacific Life Frontiers ll deferred fixed annuity could be a great way to accomplish that.
Prior to going full steam ahead with getting this annuity, it is highly recommended that you first have a much more in-depth idea about how the product works – as well as how it may (or may not) be aligned with your specific financial goals. Then, once you are much more familiar with it, you can feel more comfortable with either moving forward with a purchase, or passing on this annuity and moving on to one that is more beneficial to you.
As our life expectancy has gotten longer, deferred fixed annuities have become more popular. This is because these annuities can allow you to receive an ongoing stream of income far into the future – and that income can last for as long as you need it, regardless of how long that may be.
However, before you go out an purchase the Pacific Life Frontiers ll – or any annuity, for that matter – it is important that you first have a thorough understanding of the benefits that it may provide, as well as any possible drawbacks, as these annuities can be very difficult to get out of once you get in.
Over the past decade or so, fixed annuities have become much more popular with people who are retired, as well as those who are approaching that time in their lives, as they can help to alleviate the concern about running out of money in retirement.
But, because of this increase in demand, many insurance carriers have been introducing new products – and unfortunately, this can make a product that is already somewhat confusing even more so. This is actually true for well-informed consumers, as well as many insurance and financial advisors!
With that in mind, unless the advisor that you work with has a primary focus on selling annuity products, you really should do some additional research on these products, as they will oftentimes require that you deposit a large chunk of your savings into them.
That’s where the Annuity Gator can come in!
Annuity and Retirement Income Planning Information You Can Trust
If this is the first time you have been to our website, we would like to personally welcome you here to AnnuityGator.com. We are a team of experienced financial professionals who are dedicated to providing non-biased and in-depth reviews of annuity products. We’ve been at this for a number of years now – far longer than most of our “copycat” competitors – and because of this, we have come to be known as a highly trusted source of annuity information.
If you’ve been seeking information about annuities online, it is likely that you have come across many conflicting details about these financial vehicles. This isn’t really very surprising, though, because there are a lot of opinions (both positive and otherwise) about these products floating around the Internet.
While there are a number of very good websites on the Internet that are focused on offering their annuity products, there are some that will attempt to lure you in with some pretty bold claims like:
- Lowest Fees
- Highest income payouts
- Guaranteed lifetime income
- Top-rated companies
But, while these features and benefits may sound really good, seeing this information plastered all over these websites can make it all the more important to know whether or not these claims are actually true. This is where our website can help. In fact, if you have come here in search of more in-depth details on the Pacific Life Frontiers ll fixed deferred annuity, you are certainly in the right place.
We dare say that our website is really the only place where you can find out all of the information – the good, the bad, and yes, even the ugly. Knowing the whole picture, though, can help you in determining whether this product will be right for you.
Just to be clear here, we want to state for the record that there can be a long list of benefits that can be attained when you purchase an annuity – provided that the product fits in with your overall financial needs and goals.
That being said, if you are ready to start the review, let’s go ahead and dive in!
Pacific Life Frontiers Fixed Deferred Annuity at a Glance
|Type of Product||Fixed Deferred Annuity|
|Standard & Poor's Rating||AA-|
|Phone Number||(800) 722-4448|
Opening Thoughts on the Pacific Life Frontiers Fixed Deferred Annuity
Pacific Life has more than 145 years of experience in helping its clients to grow and protect wealth. The company works with individuals, families, and businesses – and it provides a long list of financial and insurance products.
As of year-end 2016, Pacific Life held roughly $143 billion in total assets, and for the year 2016, it paid out $2.3 billion in insurance and annuity benefits to its clients, policyholders, and beneficiaries.
The company has received very high ratings from the insurer rating agencies, including a(n):
- A+ (Superior) from A.M. Best Company
- A+ (Strong) from Fitch Ratings
- A1 (Good) from Moody’s Investor Service
- AA- (Very Strong) from Standard & Poor’s
Pacific Life, at the end of 2016, stood as the #1 seller of indexed universal life and universal life sales, and it was the 8th largest company in terms of total life insurance sales. The company also ranks as #13 in terms of variable annuity sales, and the #16 largest fixed annuity seller.
Back in the early 1900s, average life expectancy was only in the neighborhood of 41 years old. Over the past 110 years, though, things have changed. In fact today, many people are living well into their 80s, 90s, and beyond. But, while this can allow you to spend more time enjoying your retirement years, it can be quite difficult to do without enough income.
A fixed deferred annuity can, however, help you to solve for this problem because this type of annuity will continue to pay out an income stream for the remainder of your lifetime, as well as that of a loved one if you choose. Yet, even with these nice features, you really need to know more about how the annuity actually works, and what you may need to give up in return for attaining these guarantees.
Before we get into the in-depth details, we have some legal disclosures to present…
This is an independent annuity product review. It is not a recommendation to purchase or to sell an annuity. Pacific Life has not endorsed this review in any way, nor do we receive any type of compensation for providing this review. This annuity review is meant solely to be an independent review at the request of our readers so that they may see our perspective when breaking down the positives and the negatives of this particular annuity. Prior to committing to the purchase of any type of insurance and/or investment vehicle, it is critical that you do your own due diligence, and that you also talk with a properly licensed professional if you have any questions that relate to your specific situation. All of the names, materials, and marks that have been used in compiling this annuity review are the property of their respective owners.
For more details on how to compare fixed annuities so that you can decide which may be the best one for you, click here in order to obtain our free annuity report.
How Pacific Life Describes the Frontiers Fixed Deferred Annuity
According to Pacific Life, the Pacific Frontiers ll is a single premium deferred fixed annuity that can help you with:
- Growing retirement income through the power of tax deferral
- Locking in guaranteed interest rates for a term that you choose
- Converting your assets into guaranteed lifetime retirement income
With this annuity, you are able to choose from one of the guaranteed interest rate terms that are available at the time of issue in order to lock in an interest rate for a certain period of time. Then, once the initial interest rate guaranteed period has ended, you can opt to do one of the following:
- Transfer the annuity’s contract value to the same guaranteed term, or to a different available guaranteed term, at the then-current guaranteed interest rate
- Withdraw the full amount of the contract – without incurring surrender charges
If you do not make a specific election during the allotted time frame, then your annuity’s contract value will automatically transfer into the same guaranteed term, if that is available at the time.
There are some other features on this annuity, too, such as a death benefit in the case the annuitant passes away before taking income payments. In this instance, the Pacific Frontiers ll will transfer the value of the contract directly to your designated beneficiary (or beneficiaries). This process can help to avoid the costs and the time delays of the probate process.
If you’d like to read more of the in-depth details about the Pacific Life Frontiers Fixed Deferred Annuity, you can do so here via the product brochure.
How an Insurance or Financial Advisor Might “Pitch” this Annuity
Given that it can be rare to find long-term guarantees with many financial products, it may be that if you’ve been presented this annuity by an insurance or financial advisor, he or she likely keyed in on the interest rate guarantees.
In this case, there is the option to lock in a set rate of interest – regardless of what occurs in the market or the economy – which can provide you with stability and predictability. There is also the opportunity to receive a lifetime stream of income – no matter how long you may need it. This, in turn, can help to alleviate the worry about running out of income in retirement.
However, just as with most other things in life, there is always another side to the story – and this is the case here with the Pacific Life Frontiers ll fixed deferred annuity. Here, for instance, even though you can lock into an interest rate for a certain period of time, because we have been living in a historically low-interest rate environment for the past decade or so, it is likely that you really won’t even meet – much less beat – inflation. Unfortunately, this is the “price” we often have to pay for safety – at least when it comes to financial products.
What Fees Are There on this Annuity?
One of the big drawbacks about annuities is that they can be riddled with various fees. So, knowing where these fees may be charged is key to ensuring that you won’t be taken by surprise.
In the case of the Pacific Life Frontiers ll Fixed Deferred Annuity, you will incur a surrender charge if you withdraw more than 10% of the annuity’s contract value during the first 7 full years. The amount of the surrender charge is as follows:
|Charge Per Withdrawal||7%||6%||5%||4%||3%||2%||1%||0%|
If you make such a withdrawal (or withdrawals) before you turn age 59 1/2, you can also incur an additional 10% IRS “early withdrawal” penalty.
In addition, if your annuity transfers into a new interest rate guarantee term (once your initial term has elapsed), then the withdrawal charge schedule will reset, and your money will again be locked up for this entire period, incurring a surrender charge if you withdraw more than 10% of the contract value.
The Annuity Gator’s End Take on the Pacific Life Frontiers ll Deferred Fixed Annuity
Where it works the best:
- If you want to lock into a set interest rate (for a set period of time)
- If you want to ensure that your principal is safe
- If you plan to use the lifetime income feature
Where it works the worst:
- If you want the opportunity for a higher rate of return
- If you may need to withdraw funds from the annuity during the surrender period
- If you do not plan to use the lifetime income feature
There can be a long list of factors to consider before you commit to an annuity. In the case of the Pacific Life Frontiers ll Fixed Deferred Annuity product, these factors include the interest rate you’ll receive, the surrender period, and the opportunity (or lack thereof) to earn a higher rate of return on your money.
If you are still leaning towards buying this annuity, though, then you can be sure that your principal will be safe, and that you will be able to count on a guaranteed income stream in the future. (You may also be able to count on that for a loved one, as well, such as your spouse).
Yet, even with these nice features on the Frontiers ll annuity, this product could still fall somewhat short – and quite frankly, there may very well be a better alternative out there for you.
In reality, the only way to truly know if this annuity will perform well for you is to have it tested. We can do this for you and can provide you with the results – at no charge or obligation. If you are interested in taking a look at the potential performance of the Frontiers ll, then please contact us here via our secure online contact form.
Have Any Additional Questions? Did You Happen to Notice Any Mistakes in this Annuity Review?
We realize that this review of the Pacific Life Frontiers Fixed Deferred Annuity went a tad bit long. So, we thank you for sticking with us through to the end here. When creating our annuity reviews, though, we would much rather “err” on the side of being “too long” as versus not long enough. With that in mind, if you found this annuity review to be beneficial, then please feel free to share it with others who may also benefit from it by forwarding it on to them.
Are there any other annuities that you would like to see reviewed on our website?
There are lots and lots of annuities available in the marketplace today. So, if you would like to see a particular annuity reviewed, then just let us know the name of the annuity (or annuities), and our team of annuity “geeks” will get on the case. So, be sure to check back soon for the new reviews.
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