Pacific Life Insurance Company launched a fee-based variable annuity at LPL Financial within LPL's Strategic Asset Management (SAM) and Strategic Wealth Management (SWM) platforms.
The company said the Pacific Odyssey annuity product is timely thanks to the Department of Labor's fiduciary rule set to go into effect April 10. The rule could put pressure on broker-dealers to emphasize fee-based products, the company said in a press release.
"While LPL Financial continues to focus on brokerage variable annuity solutions and believes they are and will continue to be an important and relevant solution to meet retirement planning needs in a post-DOL environment, we are excited to expand our existing fee-based variable annuity lineup with the competitive features offered by the Pacific Odyssey product to meet a growing interest and demand in that space," said Warren Posner, LPL Financial senior vice president of product management.
Key features of Pacific Odyssey include:
- Mortality & expense and administrative charges of 0.30 percent annually.
- No withdrawal charges — There are no front-end loads or back-end withdrawal charges, allowing clients full access to their account values anytime in the form of partial or lump-sum withdrawals.
- More than 100 investment options — The product offers more than 100 investment options across several different asset classes along with more than 50 funds with net fund expenses currently less than 1 percent.
- Optional living benefit — For an additional cost, clients can add a living benefit option for guaranteed lifetime income without giving up control of their assets.
- A standard death benefit for no additional cost.
The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original value, the company said.
"Pacific Life is focused on bringing quality retirement solutions to a broad range of financial professionals, no matter what business model they choose," said John White, vice president of national accounts and sales support for Pacific Life's Retirement Solutions Division. "We are excited to offer Pacific Odyssey at LPL Financial within its SAM and SWM platforms. Pacific Odyssey is a cost-efficient option for LPL Financial advisors seeking a fee-based product that provides the opportunity for growth, guaranteed income for retirement and legacy protection."