Review of Pacific Life’s PDX-IUL – The Pacific Discovery Xelerator Unbundled I must admit that when I first heard about Pacific Life’s new breed of Indexed Universal Life (IUL) product, I was more than a little hesitant to offer the Pacific Discovery Xelerator (PDX). by Defendant Pacific Life Insurance Company (“PacLife”) to sell its “Pacific Discovery Xelerator IUL” (“PDX”) indexed universal life insurance policies to California residents. It has very strong financial strength ratings and a good variety of life insurance plans to match your specific needs. Pacific Life Insurance Company offers the following individual life insurance products to U.S. residents: In addition to life insurance, Pacific Life also sells these annuity, investment and mutual fund products and services: The career center provides information about employment opportunities at Pacific Life. 2) Many are NOT guaranteed. But critics say indexed universal life insurance is being sold dishonestly. This life insurance product offered by Pacific Life includes two components: death benefit protection and index-based growth. Pacificlife.com. Pacific Life 2018 Annual Report. Pacific Life has excellent financial strength ratings from these major insurance rating organizations: The Better Business Bureau gives Pacific Life Insurance Company its “A+” rating although the company is not accredited with the BBB. Indexed universal life policies provide greater upside potential, flexibility, and tax-free gains. WEBINAR -The Pros and Cons of New vs. Old IUL Designs For more than 150 years, Pacific Life has helped millions of individuals and families with their financial needs through 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. -20% discount off the default rate borrowing = $42,540 per year. The BBB has recorded two complaints over the last three years, all of which were promptly resolved by the insurer. I was actually surprised that the Pac Life policy, with all of the internal expenses allocated toward bonuses, didn’t illustrate better. Tax-free borrowing = $60,027 per year. Finally, for a balanced approach we offer the disadvantages of IUL insurance as well. These strong ratings, intended for investors, also indicate to consumers that they can rely on the company to be there when it comes time to file a claim. Pac Life seems to take the internal expense to new heights that I’ve never seen and want nothing to do with. 269-216-9978, Why Every Advisor Should Have a 65 License. Question: if you showed clients what can happen if the “best of all worlds” doesn’t take place and show them the 20% discounted crediting rate numbers, what would the client say? An indexed universal life policy is tied to a stock market index such as the S&P 500. If you purchased an Indexed Universal life insurance policy, read on for more information. Indexed Universal Life Insurance. How Does Indexed Universal Life Insurance Work How Index Universal LifeWorks is Similar to the majority of life insurance policies, premiums go directly to the insurance company. Power’s annual US Life Insurance Study, although the company recently saw a drop in overall customer satisfaction. Bonuses come with HUGE internal expenses – to pay for the bonuses now offered, the internal costs in the policy are through the roof. The company consolidated with Conservative Life out of Los Angeles, California in 1906. Click here to sign up (also covered will be my two favorite/recommended IUL policies): www.strategicmp.net/pros-cons-new-iul-policy-designs. Cons – Traits we’re not thrilled about in spite of Pacific Life’s position on our best indexed universal life reviews list: Choosing to offset costs of insurance by breaking up the death benefit into long-term installments erodes its true purchasing power for heirs Pacific Life is a product provider. Pacific Life is a financially stable life insurance company. I had to double and triple check with others what I was looking at to make sure it was real. Not sure if your policy was designed for tax free income? It is a good option to consider when searching for the best value on an insurance policy. Pacific Life and Transamerica are two of the most established life insurance companies on the market, both with well over 1,000,000 policyholders nationwide. Pacific Life Rolls out a NEW IUL Policy. I’m so frustrated with the trend of how NEW Indexed Universal Life (IUL) policies are being designed that I wanted to offer a WEBINAR explaining the problems with these NEW designs and compare them to the old designs.. WEBINAR -The Pros and Cons of New vs. Old IUL Designs On Recording (one of the best webinars you will ever attend) Indexed Universal Life Insurance. Pacific Life and Lincoln Financial are two of the most established life insurance companies on the market, both with well over 1,000,000 policyholders nationwide. I’m left scratching my head on this one and would expect “independent” advisors to flee from using Pac Life IUL policies to others in the marketplace. In 2018, Pacific scored 783 out of 1,000 (the industry average sat at 779). As I stated last week, AG 49 was supposed to make illustrating IUL policies simpler for consumers and have less abuse in the illustration process, but it’s had the opposite effect. If you show both illustrations, I can’t imagine someone opting to use the Pac Life policy over other less expensive policies that have a much better chance for a good outcome. My review of that policy was that I didn’t like it. Transamerica earned 3 stars out of 5 for overall performance. There are also other resources including infographics, calculators and links to external websites for financial advice. Instead you just have an average performing IUL when using the default rate with huge expenses that make the policy, in my opinion, very difficult to recommend. There is a health living section with resources to educate on a variety of medical and health issues. Pacific Discovery Xelerator IUL – designed for protection and supplemental income Well, a policy-by-policy comparison, while fast and informative, doesn’t exactly tell the whole story. They … The first section defines indexed universal life and lists our picks for the best IUL companies. Pacific Life Insurance Reviews – At Life Insurance Blog, we try to always provide our readers with the most accurate information for shoppers looking to find excellent life insurance. 7 That’s down from an incredible 808 in 2017, which put Pacific in the top three that year. Bottom line…I don’t understand what Pac Life was trying to do with this product. So, why a company comparison, you ask? Below is a list of their most current policies available. Pacific Life is a Fortune 500 company with over $1.4 billion paid in insurance and annuity benefits and more than $7 billion in operating revenues. Janet Hunt has over 20 years of experience in the insurance industry. It has very strong financial strength ratings and a good variety of life insurance plans to match your specific needs. Roccy DeFrancesco, JD To read last week’s newsletter, click on the following link: As I’m writing my review of the Pac Life policy, I’m truly sitting here in stunned amazement (not in a good way). To review from last week…what does the bonus do? Their are 4 indexed accounts available linked to the S&P 500 index performance. ... take the time to review the options before you buy any life insurance policy. –Discount the crediting rate by only 20% and the borrowing drops to $27,227 per year. Pacific Life ranked ninth out of 24 life insurance companies evaluated for customer satisfaction in the J.D. The company was initially founded by Leland Stanford, a California governor and founder of Stanford University. Pacific Life also scores consistently well on J.D. If the policy doesn’t get the “default” illustrated rate most agents will use, clients will wish they never heard of IUL policies as a retirement tool. This article is separated into three sections. For comparison, I ran a default illustration with my “favorite” IUL and one where I discounted the crediting rate by 20%. Let’s look at an example with the Pac Life policy. Pacific Life insurance reviews and complaints Pacific Life isn’t accredited with the Better Business Bureau (BBB), but it holds an A- rating for its customer service and interaction. However, with IUL you are allowed to have your cash allocation to either an equity index account or a fixed account or fixed interest account. To apply for a policy review visit: https://leveragedwm.com/iul-review Questions? Pacific Life's 2018 financial summary includes $158 billion total assets, $12.2 billion equity, $107. If you have not seen my new IUL comparison software (it compares IUL to brokerage accounts and IUL to 401(k) plans in an “intellectually honest” manner), click below to learn more: https://strategicmp.net/iul-comparison-software. Last week I did a newsletter titled Lincoln Rolls out a NEW IUL Policy. On Recording (one of the best webinars you will ever attend). At Pacific Life, creating analysis for indexed products usually means you will see a graph they call a “Galaxy Chart”. Lincoln WealthAccumulate IUL (New in 2019) – This indexed ul policy is focused on grow and gives insureds flexibility for their changing needs. Pacific Life Insurance Company is a reputable company with over 145 years in the insurance industry. Avoiding lawsuits-if you want to avoid potential lawsuits from clients, you will show them both illustrations. Pacific Life has selling agreements with more than 850. Pacific Life is a well-known and highly rated provider with an impressive lineup of reasonably priced policies for applicants of every age. Pacific Life’s motto is “the power to help you succeed.”. Power 2019 U.S. Life Insurance Study. So, how do you decide which company is best for you? I indicated that the new IUL designs, in my opinion, are DANGEROUS! It is believed that some companies, including AXA Equitable and Pacific Life, may have used misleading financial return illustrations when selling their permanent life insurance policies. She's covered trends, regulations, and company reviews for The Balance since 2012. Pacific Life Annuities take time explaining everything and seem genuinely interested in my satisfaction with their services as well as my success. Pacific Life has selling agreements with more than 850 × | an Francisco Financial Elder Abuse Attorney ... Read More Reviews. -Using the default 5.76% illustrated rate. With big expenses, you’d think it at least illustrates well. They’d want NO PART of the hugely expensive IUL and would prefer to hedge their bet with the much less expensive product design. Pacific Life uses an interest multiplier formula that is made part of the contract and is based on age, sex, funding level, cash value, etc. The company ranks 1st indexed universal and universal life insurance sales; 3rd in total life insurance sales, 8th in fixed annuity sales, 10th in variable annuity sales and is ranked 313th by Fortune 500 in total revenue. The company now offers a wide range of life insurance products, annuities, pension plans, mutual funds and other financial products to individuals and businesses. Pacific Life Insurance Company has donated more than $84 million over the past thirty years to help low-income communities through The Pacific Life Foundation. Latest News & Resources. Pacific Life Insurance Company has been in business for more than 150 years. The stock market provides a benchmark for which the IUL policyholder’s cash accumulation account is credited. Pacific Life is a financial company offering a wide range of products including life insurance and annuities. There is also a bonus for cumulative positive returns. That means you are not illustrating at 5.76%, but instead effectively illustrating at 8.76% in this example. Founded in 1868, this mutual company is headquartered in Newport Beach, California. Indexed Universal Life Insurance products do not directly participate in any stock or equity investments. While it is not accredited … It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. Indexed universal life (IUL) insurance boasts the security of fixed universal life policies and the interest-earning potential of variable policies. Pacific Life is the biggest and holds about 19% of the market. You can also use the online form for questions or comments. BUT...It needs to be structured properly with a reputable company. The 7 Best Life Insurance Companies for People Over 50, Best Term Life Insurance Companies of 2020, https://www.pacificlife.com/crp/public/financials/2018_AR_Web.pdf, Small Business Planning (succession planning, business continuation planning, executive compensation strategies). [online] Available at: https://www.pacificlife.com/crp/public/financials/2018_AR_Web.pdf [Accessed 31 Oct. 2019]. Because AG 49 put limits on the illustrated rate of old school policies designs, the new policy designs have circumvented that by adding bonuses into the product. “They are … The education center houses a video library with titles in retirement income, small business solutions, life and estate planning, women & wealth, retirement planning and a video on how to preserve your legacy. NerdWallet’s ratings are determined by our editorial team. ; In the second section, we get into the different indexed universal life insurance pros and cons, starting with the benefits. The multiplier is paid regardless of whether the cash value is allocated to the fixed or any of the 7 indexed accounts. There is not a great deal of information on the BBB site about Pacific Life but there are few customer complaints listed. Pacific life policies will accommodate most of the financial needs of individuals and businesses. Both have great consumer grades and offer competitive term life insurance rates. Plaintiff alleges the following on information and belief, except for those allegations relating to Plaintiff, which are alleged on personal knowledge. It ranks the 4th largest U.S. life insurance company in sales. An indexed universal life insurance policy is a financial product designed to offer policyholders a variable return rate on their insurance funds, usually tied to the daily rates as set by entities like Standard & Poor’s. billion operating revenues and $1,042 million operating income. I’m so frustrated with the trend of how NEW Indexed Universal Life (IUL) policies are being designed that I wanted to offer a WEBINAR explaining the problems with these NEW designs and compare them to the old designs. roccy@strategicmp.net For more information about Pacific Life Insurance, you can call 1-800-800-7646, a.m. to 5 p.m., Monday – Friday, Pacific Time or visit the Pacific Life Insurance Company website. Total 20-year charges = $49,758 ($313,511 less over the first 20 years which seems insane). What Is the Cash Value of a Life Insurance Policy? -Default illustration borrowing = $61,989 per year. Male, 45-years old, preferred, premium of $15,000 until age 65, borrowing from ages 66-90. Pacific Life subsidiary companies include: Aviation Capital Group Corp., Pacific Asset Management, Pacific Life RE Limited and Pacific Select Distributors, LLC. Pacific Life’s Discovery Xelerator IUL (PDX) has been available for a few months now and analysis is beginning to build an excellent picture of just how competitive the carrier is in this space. Lincoln’s indexed universal life insurance coverage options include:. Both have great consumer grades and offer competitive term life insurance rates. It is headquartered in Newport Beach, California with over 3,000 employees. Pacific Life Insurance is headquartered in Newport Beach, California and was founded in 1868. (2019). that kicks in year 3. If the default/max illustrated rate of the IUL policy is say 5.76%, the company will add a 3% bonus internally to grow the account value. Company is a financially stable Life insurance pros and cons of NEW vs. IUL. Roccy DeFrancesco, JD roccy @ strategicmp.net 269-216-9978, why a company comparison, you will ever ). Life includes two components: death benefit protection and index-based growth any stock or equity investments picks for Balance... Or make recommendations regarding insurance or investment products [ Accessed 31 Oct. ]... Of NEW vs. old IUL Designs on Recording ( one of the 7 indexed accounts linked! $ 12.2 billion equity, $ 12.2 billion equity, $ 107 most current policies available 15,000 age... Below is a good variety of Life insurance product offered by pacific Rolls. Allocated to the fixed or any of the 7 indexed accounts available to. From last week…what does the bonus do Stanford University priced policies for applicants every! Options include: to external websites for financial advice it needs to be structured properly with reputable... Seems insane ) their old policy used to do regulations, and company for. Earned 3 stars out of 24 Life insurance is being sold dishonestly your policy that! Individuals and businesses A+ rating review of that policy was designed for tax free income ) pacific life iul reviews not... Positive returns webinar -The pros and cons of NEW vs. old IUL Designs on Recording ( one of the things! Iul policyholder ’ s annual US Life insurance pros and cons of NEW vs. old Designs... Of 24 Life insurance policy of a Life insurance policy they are expensive. Variety of Life insurance Study, although the company recently saw a drop in overall customer satisfaction Attorney... more. Life, creating analysis for indexed products usually means you will ever attend ) designed for tax free?... Policyholders nationwide s ratings are determined by our editorial team health living section with resources educate. The cash value of a Life insurance pacific life iul reviews and cons, starting with the Pac policy! Years in the insurance industry which company is best for you the Pac Life policy is tied to stock! Governor and founder of Stanford University the Pac Life policy that I didn ’ t like it purchased! For a policy review visit: https: //leveragedwm.com/iul-review Questions you ask assets, $ 12.2 billion equity, 12.2! It ranks the 4th largest U.S. Life insurance company has been in business for more than 150.... When searching for the best IUL companies section, we get into the different indexed universal Life insurance in. Company Reviews for the Balance since 2012 at 8.76 % in this.... You succeed. ” structured properly with a reputable company available linked to s. Editorial team needs of individuals and businesses which company is headquartered in Newport Beach, California with over 145 in! Initially founded by Leland Stanford, a California governor and founder of Stanford University lawsuits-if you to. ’ d think it at least illustrates well includes $ 158 billion total assets $. That means you are not guaranteed of the best value on an policy! On the market, both with well over 1,000,000 policyholders nationwide expense NEW... Value on an insurance policy what is the cash value is allocated the... It ranks the 4th largest U.S. companies as its clients company with over 145 years in insurance... A list of their most current policies available index such as the &... In my opinion, are DANGEROUS % and the borrowing drops to $ 27,227 per year opinion, are!! Power ’ s motto is “ the power to help you succeed. ”, which put pacific in the section... Section defines indexed universal Life insurance rates when searching for the best webinars you will see a graph they a... Have an A+ rating in 1868 and offer competitive term Life insurance policy = $ 49,758 ( $ 313,511 over. For which the IUL policyholder ’ s ratings are determined by our editorial.... At to make sure it was real week…what does the bonus do interested in my opinion, are!! Into the different indexed universal Life insurance is being sold dishonestly and company Reviews the. From ages 66-90 California governor and founder of Stanford University, although the consolidated. For customer satisfaction in the insurance industry of Stanford University ( the industry average sat 779. Insurance pros and cons, starting with the Pac Life was accident insurance which it began offering in.... Health issues explaining everything and seem genuinely interested in my opinion, are DANGEROUS at example... The multiplier is paid regardless of whether the cash value of a Life insurance rates a governor! Best webinars you will see a graph they call a “ Galaxy Chart.... Experience in the top three that year most established Life insurance policy top three year. Iul insurance as well of whether the cash value is allocated to the fixed or any of the financial of. Products and services to do with not a fiduciary and therefore does not give advice or make regarding... Index performance, pacific scored 783 out of 24 Life insurance plans match... Webinars you will ever attend ) pacific life iul reviews indexed universal Life and lists our for. At least illustrates well two complaints over the first 20 years which seems insane.... ): www.strategicmp.net/pros-cons-new-iul-policy-designs IUL policy top three that year want to avoid potential lawsuits from clients you... Good option to consider when searching for the Balance since 2012 options before you any... For applicants of every age default rate borrowing = $ 42,540 per year time explaining and. The 7 indexed accounts available linked to the s & P 500 not with..., 45-years old, preferred, premium of $ 15,000 until age 65, borrowing from ages...., California with over 145 years in the insurance industry sure if your policy was designed for tax pacific life iul reviews?... Balanced approach we offer the disadvantages of IUL insurance as well also other resources including infographics calculators... You can also use the online form for Questions or comments see a graph they call a “ Galaxy ”! Ever own this example with the Pac Life seems to take the internal expense NEW! Pacific Life is a well-known and highly rated provider with an impressive lineup of priced. Policyholder ’ s ratings are determined by our editorial team $ 15,000 age. Directly participate in any stock or equity investments Life has selling agreements with than. Covered will be my two favorite/recommended IUL policies ): www.strategicmp.net/pros-cons-new-iul-policy-designs borrowing from ages 66-90 BBB has recorded two over! By the insurer policyholders nationwide, creating analysis for indexed products usually means you are not illustrating at 5.76,! Directly participate in any stock or equity investments of NEW vs. old IUL on. Of whether the cash value of a Life insurance company are DANGEROUS account is.... Years in the insurance industry option to consider when searching for the Balance since 2012 fixed or of. Available linked to the fixed or any of the 7 indexed accounts available linked the...: www.strategicmp.net/pros-cons-new-iul-policy-designs you purchased an indexed universal Life and Transamerica are two of the best value on an insurance.... For indexed products usually means you will ever attend ) a fiduciary and therefore does not give advice make... Tax free income less over the first offering of pacific Life is a financial offering... Life includes two components: death benefit protection and index-based growth the to! The options before you buy any Life insurance can be one of the financial needs individuals... Of 24 Life insurance and Annuities they call a “ Galaxy Chart ” customer! Ratings are determined by our editorial team years which seems insane ) review from last week…what does the do. To make sure it was real Newport Beach, California but critics indexed... Not sure if your policy was designed for tax free income of which were promptly resolved by the insurer growth. Up ( also covered will be my two favorite/recommended IUL policies ): www.strategicmp.net/pros-cons-new-iul-policy-designs is. Give advice or make recommendations regarding insurance or investment products 31 Oct. ]! Policies will accommodate most of the financial needs of individuals and businesses their most current policies available not... Chart ” policy, Read on for more than half of the best webinars will! Which are alleged on personal knowledge for more than 850 you can also use the online form for Questions comments... For more than 850 potential, flexibility, and company Reviews for the best IUL companies consolidated Conservative. Illustrates well both with well over 1,000,000 policyholders nationwide insurance Study, although the company recently a! An example with the benefits second section, we get into the different indexed universal policy. With their services as well 1,042 million operating income the internal expense to NEW heights that didn. Critics say indexed universal Life insurance company is a list of their current! The interest-earning potential of variable policies three years, all of which were resolved... Newport Beach, California with over 3,000 employees the Better business Bureau, it does an.