Pacific Life has been looking to fill a void within their line of fixed annuity products. They recently launched a new deferred income annuity to fill that void. Insurance News Net’s Cyril Tuohy introduced the new product in the article “Pacific Life Launches Fixed, Deferred Income Annuity.” This new deferred income annuity offers a guaranteed stream of income during retirement. Fixed annuities have been selling well this year, particularly deferred income and indexed annuity products. Pacific Life says that their Pacific Secure Income deferred income annuity can be used to pay for basic living expenses in retirement. This is one of the first steps that their clients can take to help build an active retirement. You can spend more of your savings on hobbies and travel knowing that your basic living expenses are covered.
During the first half of this year, the industry sold $1.3 billion of deferred income annuities. That was a 43% increase from the first half of last year. Second quarter sales were up 33% from year to year. Although they still make up a small portion of overall annuity sales, deferred income annuities are likely to continue their upward trend and overtake other types of fixed annuity products in the next 5 years or so. Those who purchase deferred income annuities defer their payments until some point in the future. The products are similar to Social Security in that the longer you wait to start receiving your payments, the higher your payments will be.
The number of people retiring is increasing every year and those retirees are searching for ways to generate a stream of income, especially if they won’t receive a pension from their job. Pacific Life’s Pacific Secure Income annuities fill a niche within the company’s line of fixed annuity products. Clients have the option of purchasing the deferred income annuity with a lump sum or with multiple premium payments. Annuity products are often labeled as inflexible, but the Pacific Secure Income annuity offers choices and flexibility. Although you choose the start date to begin receiving payments when you purchase your annuity contract, that date can be changed. You can start receiving income sooner or defer your payments even longer if your needs change. There are also options that can be added to your annuity in case you die sooner than you expected. Your heirs can be reimbursed for the entire purchase or continue to receive income payments if you had already started getting them.
As with any annuity product, you should know the ins and outs of deferred income annuities before making a purchase. If you have questions about Pacific Life’s Pacific Secure Income deferred income annuity or any other annuity products, an expert would be happy to help you.