Pacific Life introduced a fee-based indexed annuity, the Pacific Index Advisory contract.
In January, the Newport Beach, California-based company introduced a fee-based variable annuity product, the Pacific Odyssey contract.
Both products are aimed at financial professionals who are charging their clients fees, rather than collecting commissions from the insurers that write the annuities.
The U.S. Department of Labor has been trying to implement financial services product marketing standards that could push many financial professionals and distributors toward fee-based compensation models. The Trump administration has delayed implementation and may eventually change or kill Labor’s fiduciary rule effort, but many life insurers have been introducing annuity products based on the assumption that the shift toward fee-based compensation will continue.
Christine Tucker, a vice president in Pacific Life’s retirement solutions division, said in a statement about the new product that Pacific Life believes the number of fee-based annuity options is still limited.
“This new fee-based fixed indexed annuity offers advisors more choice and flexibility when developing their clients’ portfolios,” Tucker said.
A form filed with the District of Columbia shows that the version of the contract available there offers a fixed account option, an index-linked option and a market-value adjustment feature. It offers the purchaser a choice between a 5-year withdrawal charge structure and a 7-year withdrawal charge structure.
The contract issue ages are 0 through 85.
Two optional riders add investment strategies to the contract.
Two other riders can insure the purchasers’ ability to make withdrawals up to a protected payment amount limit.
The index menu includes options tied to the S&P 500 and the MSCI EAFE.