What’s Covered In This ReviewIn this review, we’ll cover the following information on the Pacific Life Pac Mariner 7 Year Guaranteed Rate (MYGA) Annuity:
- Product Type
- Current Rates
- Realistic long term return expectations
- How it is 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 have been considering the purchase of an annuity because you want to get a guaranteed interest rate on your funds, and you want your hard earned savings to remain safe – regardless of what happens in the stock market – then the Pacific Life Pac Mariner 7 Year Guaranteed Rate annuity could be a viable option for you. That’s because this annuity offers a way to grow your money using a guaranteed rate of return, along with protection of principal in any market environment. But, before you go out and purchase this annuity sight unseen, it is important that you first get a more thorough understanding of its benefits, and it potential drawbacks, because if you decide that it isn’t for you after you’ve made a commitment, it could be fairly expensive to get out of it. Over the past decade, or so – and particularly after the U.S. recession of 2008 – annuities have become much more popular with those who are retired and who are approaching this time in their lives. One reason for this is the fact that fixed and fixed indexed annuities offer a promise of safety. So, you can count on a more restful night’s sleep going forward. These products also help to alleviate the concern about running out of money in retirement. That’s because, if you go the route of choosing the lifetime income option, the annuity will continue to pay out an income stream, no matter how long you need it. (You can also typically add a joint income recipient, such as a spouse or significant other, who can also take advantage of receiving a lifetime income). Due to increased demand for annuities, though, insurance companies have been coming out with a variety of new products – many of which can make what was an already confusing product even more difficult to understand. This is the case for both consumers and many insurance / financial advisors. So, 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 often time require that you deposit a large chunk of your savings into them.
Annuity and Retirement Income Planning Information That You Can TrustIf this is your first visit to our website, then please allow us to officially welcome you here to AnnuityGator.com. We are a team of annuity pros who focus on offering very comprehensive – and unbiased – annuity reviews. We have been at this for quite a few years now – longer than our competitors. And, because of the in-depth reviews that we provide, we have become a highly trusted source of annuity information online. Over the past decade or so, however, there have been a number of “copycat” websites that have popped up on the Internet. While some of these can give you information about annuities, what you are likely to find is that they are oftentimes just simply reiterating what our information already shows. If you’ve spent any amount of time seeking annuity information online, it is probable that you have also come across some highly conflicting information about these products. This is not entirely surprising, however, because there are a lot of annuities out there to choose from now, and everyone seems to have a different opinion of them. It’s possible that you have also recently gone to an annuity seminar. Here, the presenter may have given you more in-depth details about the Pacific Life Pac Mariner 7 annuity, or some other similar product. In fact, it could be your attendance at that seminar that has ultimately brought you here to our website in search of more information. In your quest for more information about annuities via the Internet, you may also have seen some annuity marketing websites that focus on luring visitors in for the purpose of obtaining their contact details. These sites will often time do so by making some fairly bold claims about the annuities they offer, such as:
- High Annuity Income Payouts
- Guaranteed Income for Life
- Top-Rated Annuity Carriers
- Low Fees
Pacific Life Pac Mariner 7 Year Guaranteed Rate MYGA Annuity at a Glance
|Product Name||Mariner 7 Year Guaranteed Rate MYGA|
|Type of Product||Multi-Year Guaranteed Annuity (MYGA)|
|Phone Number||(800) 772-4448|
Opening Thoughts on the Pac Mariner 7 Year MYGA from Pacific LifePacific 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, policy holders, and beneficiaries. The company has received very high ratings from the insurer rating agencies, including an:
- 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
Before we get into the gritty details, here are some necessary legal disclosures…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 out perspective when breaking down the positives and the negatives of this particular annuity. Before purchasing any type of insurance and/or investment product, it is important that you do your own due diligence, and that you consult a properly licensed professional if you should have any specific questions that relate to your individual situation. All of the names, marks, and materials that were used for this annuity review are the property of their respective owners. For more information on how to compare annuities in order to determine which one may be the best for you and your financial circumstances, click here to obtain our free annuity report.
How Pacific Life Describes the Pac Mariner 7 Year MYGA AnnuityPacific Life describes the Pac Mariner 7 Year Guaranteed Rate MYGA annuity as a financial vehicle where you can attain a locked-in, guaranteed interest rate for a certain period of time (in this case, for seven years). At the end of the guaranteed term, you may elect to either start another guarantee period, or alternatively, withdraw the full amount of the contract without penalty. As with other annuities, the growth that takes place within the account is tax deferred, meaning that no tax is due on the gain until the time of withdrawal. The income payout can be based on one or two lives. So, for example, if you want to ensure that both you and your spouse have a lifetime stream of income that will last until the second spouse dies, you can do that here with the joint and survivor life annuitization option. The product has some other features of note, such as a death benefit, whereby if death occurs before you start taking income payments, Pacific Life will pass the value of the annuity contract directly to a designated beneficiary (or beneficiaries), and they may be able to avoid the cost and the time delays of the probate process.
How a Financial or Insurance Advisor Might “Pitch” this AnnuityThese days, there aren’t many guarantees that you can count on – especially when it has to do with financial vehicles. So, it’s likely that if you’ve been presented this annuity by an insurance or financial advisor, one of the main areas that they’ve keyed in on is the 7-year rate guarantee that comes with this annuity. Here, you are locked into a set rate for the first seven years of owning the product. But is this necessarily a good thing? That depends. It could be if rates remain low for the duration. But if they spike up, then you could feel a bit locked in. In many ways, MYGAs (multi-year rate guaranteed annuities) can be like CDs, as you’ll have your money locked up for a certain amount of time, and are penalized with a withdrawal fee if you take out a funds (in this case, more than 10% of the contract value) during the surrender period. And, both a CD and a MYGA annuity are typically purchased using a single lump sum premium. (With the annuity, though, you do get the benefit of tax deferred growth, though). It’s also important to pay close attention to the renewal period on an MYGA annuity, because sometimes these products will automatically renew – and restart the surrender period – unless you initiate the call to your annuity sales representative/company and let them know that you don’t plan to go with another multi-year guaranteed period of time on the rate. Plus, as with other fixed annuities over the past ten years or so, the return is nothing to write home about. In fact, you’ll be lucky if you’re able to meet, much less beat, inflation, which in turn could have a negative impact on your future purchasing power.
What About Fees on the Pac Mariner 7 Year Guaranteed Rate MYGA Annuity?When it comes to fees, most fixed rate MYGA annuities pay lower commissions (which are often times built directly in, so it won’t have as much of an impact as would a 5 or 6% up-front sales commission. There are also usually no internal fees on these types of products. So, you’ll know just exactly what your interest rate is, as well as what your account value will be in the future – which is contractually guaranteed. But, as with other annuities, you will need to ensure that the money you place into the Pac Mariner 7 Years Guaranteed Rate product isn’t something that you’ll need in the near future. That’s because there are seven years of surrender charges on this annuity. This means that you’ll incur a withdrawal fee (which grades down over time). And, if you make withdrawals before you turn age 59 1/2, you’ll also be hit with an additional 10% “early withdrawal” fee from the IRS.
The Annuity Gator’s End Take on the Pac Mariner 7 MYGA Annuity from Pacific LifeWhere it works best: This particular annuity will usually work the best for those who are looking for:
- Principal protection
- A guaranteed rate of interest (at least for a set period of time)
- Guaranteed lifetime income in the future
- Want the opportunity for a higher rate of return on their money
- Want to access more than just 10% of the contract value within the first few years (i.e., don’t want their money locked in for a multi-year time period)
- Do not plan on using the lifetime income feature