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Apr 14, 2016 by |

Pacific Life IUL Policies: Know What You’re Getting

Pacific Life Insurance is headquartered in Newport Beach, California and was founded in 1868. Pacific Life has selling agreements with more than 850 financial planning firms, banks, securities broker-dealers, and other financial institutions throughout the United States. It offers annuities and life insurance policies, and is the number one seller of indexed universal life insurance in the United States.

Five different indexed universal life insurance products are available from Pacific Life, including Pacific Indexed Accumulator 4; Pacific Indexed Performer LT; PIA Protector; Pacific Indexed Accumulator 4 2015; and Indexed Pacific Estate Preserver.  If you are considering any indexed universal life insurance policies, it is important to do sufficient research and learn about both the product and the company from which you are purchasing.

Investing in an Indexed Universal Life Insurance Policy? Be Sure to Ask Questions

When you purchase indexed universal life insurance policies, the policy includes a death benefit paid to beneficiaries, but there is also an investment component. A policy should accrue a cash value, which may be invested into different types of investment products.

Understanding rules for tax deferred investments is complex, and stakes are high when making investment choices for retirement. While everyone must be diligent regarding investment dollars, those saving for retirement are especially vulnerable when deceptive sales practices result in the selection of inappropriate investment options. If you believe you were harmed by inappropriate investments, an elder abuse law firm in San Francisco can provide assistance in determining if you have a damage claim.

Indexed universal life policies are distinct from other types of universal life insurance because you have the opportunity to determine a percentage of your investment funds that you wish to allocate towards a fixed account and a portion of the funds you wish to allocate towards an equity index.  For example, Pacific Life explains in is marketing materials for Pacific Indexed Accumulator 4 that the cash value may be allocated among a combination of six indexed accounts as well as a fixed account.

Indexed universal life insurance policies are routinely marketed as a good investment strategy for retirement, with promises you can benefit from market gains while being protected from losses. Many, but not all, policies cap maximum returns in index accounts but also guarantee the principle amount which protects you from downside risk.

Unfortunately, there are often complexities associated with any indexed universal life insurance policies which are not fully understood by purchasers.

Because indexed universal life insurance policies are set up to end only when policyholders die, fees and costs increase over time as policyholders age. While policyholders often expect to pay these fees with interest accumulated by their policy, there may not be enough accumulated interest and policyholders may have to pay personally from outside funds.

There are often other problems as well. Policies may have long surrender periods, the promises of gains may be deceptive or misleading, and policyholders may find themselves facing unexpected costs.

Evans Law Firm, Inc. – A San Francisco Elder Abuse Law Firm

If you are considering an investment in indexed universal life insurance, or you purchased one previously that you are not satisfied with, contact the Evans Law Firm for advice and guidance.  Our attorneys have a great deal of experience with financial products and marketing guidelines, and can help navigate the complexities of your policy. We can be reached at (415) 441-8669, or online at info@evanslaw.com.

References:

http://www.pacificlife.com

http://pacificlife.com/content/dam/paclife_corp/crp/images/life_insurance/products_prospectuses/ClientGuide_PIA4_15-40078.pdf

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