Life insurance is an integral part of most any financial plan. That’s because, without it, the people you love and care about the most could end up facing some significant financial hardships if the unexpected were to occur.
The proceeds of a life insurance policy can be used – income tax-free – by your survivors for most any need. These can include the payoff of debts (such as a mortgage balance), the payment of monthly living expenses, and the payment of funeral and other final expenses. It can also be used for keeping financial promises, such as making sure that a child or a grandchild has money to attend college in the future.
Before you commit to the purchase of a life insurance policy, it is important to make sure that the type and the amount of the coverage are in line with your specific needs. It is also essential to check out the insurance carrier that you’re thinking about buying the policy through so that you know it is secure and stable financially, and that it has a good, positive reputation for paying out its policy holders’ claims. One company that fits these parameters is Pacific Life.
The History of Pacific Life Insurance Company
Pacific Life has been in the business of helping its clients to grow and protect their wealth for more than 145 years. The company is part of a mutual holding company structure; therefore, policy and contract owners are members of the enterprise, rather than the company being driven by shareholder needs.
The company offers a variety of products that help its clients to achieve their financial goals and to protect the people and the things that they care about. Pacific Life covers thousands of individuals and businesses. The company remains independent and is focused on long-term strategies and financial strength to benefit its policy holders and clients.
Pacific Life Insurance Review
Pacific Life has a critical expertise in several areas of economic growth and protection, such as:
- Income for Life / Retirement Income
- Wealth Accumulation
- Financial Protection
- Wealth Preservation
Throughout the years, Pacific Life has grown to be impressive regarding its financials, as well as its service to the community. The company has earned numerous awards and accolades, including:
- Ranked first in the sale of indexed universal and universal life insurance
- Ranked 8th in total life insurance sales
- Ranked 13th for variable annuity sales
- Ranked 16th for largest fixed annuity sales
- Ranked as #302 on the list of Fortune 500 companies
Also, the company has donated to numerous charities and foundations. In 2017, Pacific Life gave $2million to Marine Mammal and Ocean Focused Non-Profits. It also gave $1 million to HomeAid of Orange County. Over the past 32 years, Pacific Life has given nearly $100 million to community non-profits. It has also invested $4.4 billion in assets related to socially responsible efforts in underserved and low-income communities, as well as in environmentally green efforts. Also, in just a year 2016, the company contributed more than 10,000 employee volunteer hours to nearly 200 different community projects.
As of year-end 2016, Pacific Life held approximately $143 billion in company assets, and it paid out roughly $2.3 billion in insurance and annuity benefits for that year. In 2016, Pacific Life had operating revenues of $9.0 billion, and operating income of $868 million. Pacific Life is headquartered in Aliso Viejo, California.
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Insurer Ratings and the Better Business Bureau Grade
Due to its strong financial foothold, and its timely payment of policyholder claims, Pacific Life has earned high ratings from the insurer rating agencies. These include an(n):
- A+ from A.M. Best Company
- A+ from Fitch Ratings
- A1 from Moody’s
- AA- from Standard and Poor’s
Also, while Pacific Life is not an accredited business through the Better Business Bureau (BBB), the company has been given a grade of A+ by the BBB – based on a grading scale of A+ to F.
Over the past three years, Pacific Life has cleared just four total customer complaints through the Better Business Bureau (and only one complaint over the last 12 months). Of the four total charges, three had to do with problems with the company’s products and services, and the other one dealt with advertising/sales issues.
Life Insurance Coverage Offered Through Pacific Life
When it comes to life insurance coverage, Pacific Life has made a substantial commitment to the future of its clients and their financial well-being. The company has a long history of passing on policy improvements to their existing policy holders – so the company doesn’t disappear once the initial sale has been made. Just some of the improvements that the company has passed on to it current customers include the following:
- 123 in-force life insurance policy owner gains since 1985
- 27 life insurance providers with cost of insurance (COI) improvements
- 19 life insurance products with the premium load reduced twice
- Ten life insurance products added competitive loan provisions – actually reducing the current costs to access the policy’s cash value loans
- Seven life insurance products benefitting from a reduction in deferred acquisition cost adjustment
- Six products received an increase in the persistence credit
- One life insurance product received a reduced surrender charge
- One life insurance product reduced the mortality and expense charge
Several different life insurance options are offered through Pacific Life. These include both term and permanent life insurance policy choices. Term life insurance provides death benefit coverage only, with no cash value or savings build up. Because of that, this type of coverage can typically be quite affordable – especially as it relates to a comparable permanent life insurance policy.
The Pacific Prime Term plan is a level term life insurance policy that offers coverage for either ten, fifteen, twenty, or thirty years. During the period that is selected, the life insurance coverage will remain level, and the premium will stay the same. The policy holder is also able to access up to 75% of the policy’s death benefit if he or she is diagnosed with a terminal illness, and the policy may be converted over to a permanent life insurance policy without additional underwriting (in particular circumstances).
To more carefully “customize” the policy to the insured’s needs, there is also an optional waiver of premium rider that may be added. With this benefit, the premium on the policy may be waived (after a waiting period of 180 days) if the insured becomes disabled before age 65.
Pacific Life also offers an extensive list of permanent life insurance options. Here, there are both death benefits and cash value build up, where savings can grow and compound on a tax deferred basis.
The Flex Protector is a whole life insurance policy, where the death benefit is fixed, as is the amount of the premium. The cash value grows, based on a rate that is set by the insurance company, and the cash value may be either borrowed or withdrawn for any reason that the policy holder sees fit.
Pacific Life also offers the Versa Flex universal life insurance product. This, too, has death benefit protection and a cash component. Universal life insurance is considered to be more flexible than whole life, however, in that the policy holder is allowed (within certain guidelines) to alter the timing and the amount of the premium to match their changing needs better.
With this plan, there are different death benefit options, such as 1) necessary face amount; 2) face amount plus accumulated value, or 3) face amount plus a sum of premiums, less any withdrawals.
In certain cases, an insured may be able to convert or increase their coverage without requiring evidence of insurability.
There are additional, optional riders that can also be added to this plan to help with customizing the policy to meet the insured’s needs. These may include the guaranteed insurability rider, the waiver of charges rider, and the overload protection rider.
In keeping up with the demand for indexed products, Pacific Life also offers an indexed universal life insurance policy. Here, there is death benefit protection and monetary value – and the return on the cash value is related to the performance of an underlying market index.
With the Pacific Indexed Accumulator plan, there are several market indexes to choose from, such as the S&P 500, the MSCI Emerging Markets Index, the Hang Seng Index, and the EURO STOXX 50 Index. When the index(es) have a positive return, the monetary value will be credited – up to a certain set cap. If however, the underlying index(es) perform poorly in a given period, then the policy holder’s principal will be protected, and the monetary value will just be credited with a 0% for that period.
This plan also has additional features that may be added, such as the ability to increase coverage with the cost-effective Additional Coverage rider, and the Annual Renewable Term Rider, and the Children’s Term Rider Coverage.
Other Products and Services Available Through Pacific Life Insurance Company
In addition to life insurance coverage, Pacific Life also offers other products and services that can be helpful to its customers for the growth and the protection of their wealth. These include the following:
- Mutual Funds – Mutual funds are defined as being professionally managed investments that offer both liquidity and diversification. Numerous mutual funds are available in the market place – and depending on your goals, you can find mutual funds that focus on growth, growth and income, income, safety, and aggressive growth opportunities. Mutual funds may also consist of U.S. and international companies. Pacific Life has its own family of funds – the Pacific Funds – which is designed for growth, income generation, and diversification.
- Retirement Annuities – Today, as people are living much longer life spans, one of the key worries on the minds of retirees and pre-retirees is that of outliving their money. But, an annuity can ensure that you have income that lasts for the rest of your life – regardless of how long that may be. Pacific Life offers some annuity option that can work as a tax deferred savings vehicle and an income stream in retirement. These annuities can also keep money safe in any market or economic environment.
- Investment Products and Services for Businesses –
- Key Man Term Life Insurance – An employer may take out a key person insurance policy on the life or health of any employee whose knowledge, work, or overall contribution is considered uniquely valuable to the company.
How to Get the Best Premium Rates on Life Insurance with Pacific Life Insurance Company
If you are seeking the best premium rates on life insurance coverage through Pacific Life – or through any life insurer – it is typically recommended that you work with an independent life insurance agent who can provide you with information about multiple policies, companies, and premium rates. That way, you can pick and choose the one that suits you and your budget the best.
When you are ready to see what type and amount of life insurance coverage you may qualify for, we can help. We are an independent life insurance brokerage, and we work with many of the top life insurers in the industry today. To begin the process, all you have to do is just simply fill out our quote form.
We know that finding just the right life insurance policy and the best life insurance company can seem a bit confusing. But when you work in conjunction with an expert on your side, it can be made so much easier. So, contact us today – we’re here to help.