A West Coast insurer has added a new benefit guarantee option for purchasers of its variable annuities.

Pacific Life Insurance Company, Newport Beach, Calif., says the new Flexible Lifetime Income guaranteed minimum withdrawal benefit will guarantee 5% annual withdrawals of a “protected amount” for life starting at age 59.5.

Lifetime withdrawals are guaranteed regardless of the annuity’s actual value, even if the value is 0, Pacific Life says.

Purchasers can choose between locking in market gains every year or a 6% annual credit.

The cost of the guarantee is 0.65% of the amount being protected.

Annuity holders who want to protect assets must use Pacific Life’s asset allocation service.

Pacific Life is responsible for backing the product guarantees.