Review of Pacific Life Insurance Company
The main focus of our Pacific Life review is to help unpack the benefits of the company and help our visitors determine if this company is the right fit. We scour the internet doing the research for you, so you can check out over a hundred life insurance company reviews in order to locate the company that best fits your needs and objectives.
Your loved ones are the most important people to you, and you want to do anything you can to protect them. That includes buying a life insurance policy. But which company will offer you the best life insurance? Perhaps you’ve already started to gather some names of life insurance companies that seem to be good choices, and Pacific Life is one of them. But is Pacific Life the insurance company you need? Keep reading to find out.
Before we begin you may want to check out this short video we put together to explain the importance having choices is when comparing Pacific life insurance quotes to other top carriers in the market.
About Pacific Life
Pacific Life is based in California and has been around since 1868. That means that in 2018, Pacific Life will have been in existence for 150 years. That is quite the milestone.
Pacific Life is part of a mutual holding company structure. Mutual insurance companies operate for the sole benefit of its members, that is, its policyowners. In contrast, stock companies have to keep its investors happy, which at times can cause a conflict with the best interest of the policyholders.
Over the last 149+ years, Pacific Life has done an excellent job establishing itself as an industry leader and innovator, currently ranking #1 in the nation for indexed universal and universal life insurance sales.
Pros for Pacific Life Insurance
There are many positives to speak of with Pacific Life. When considering the pros of the company one of the first places to look are its ratings.
Pacific Life Insurance Ratings
There are many third party rating organizations that analyze financial strength and future projections of financial institutions such as life insurance companies. One of the most important rating agencies is known as A.M. Best Company. They have granted Pacific Life a rating of an A+. This is the second highest rating out of sixteen ratings, and shows that A.M. Best has confidence in what Pacific Life has to offer life insurance companies.
Pacific Life Insurance Company’s ratings include:
- A.M. Best rating: A+ Superior
- Fitch rating: A+ Strong
- Moody’s rating: A1 Good
- Standard & Poor’s rating: AA- Very Strong
- Comdex ranking: 90 (out of 100)
Each of the top ratings agencies granted Pacific Life with a solid rating and a stable financial outlook. This is a unanimous vote of confidence in Pacific Life as a company, and should reassure any life insurance policy seeker that Pacific Life is a great life insurance company.
If you are a smoker, then you should definitely consider Pacific Life. Pacific Life tends to be one of the more affordable life insurance companies for tobacco users. Many companies cater to specific niches in the life insurance marketplace. Applying with the right company from the start is one of the keys to finding the best life insurance rates.
Indexed Universal Life
Pacific Life has a really good reputation for their indexed universal life insurance product; they have ranked #1 in terms of sales of indexed universal life on many occasions. We will have mMore on this product below.
Many people find that Pacific Life offers an affordable product, especially for clients who purchase a policy early (45 and under).
Pacific Life Insurance Company Policies
There are two main types of life insurance policies, permanent life insurance vs term life insurance. Of these two main types, there are various products available.
Pacific Life offers five types of life insurance policies:
- Term Life Insurance
- Universal Life Insurance
- Index Universal
- Variable Universal
- Life insurance with Long Term Care
Term life insurance is a great way to leverage your money. You can purchase more coverage with term life, which is beneficially when covering a large mortgage on your home, protecting the primary wage earner of the household, key person life insurance, or covering a small business loan.
- Level premium term life insurance
- Available in term lengths of 10, 15, 20, 25 and 30 years
- Convertible life insurance to permanent life insurance.
Permanent coverage is a great choice for long term planning, such as life insurance for estate planning or business succession planning with a buy-sell agreement.
Indexed Universal Life Insurance
- Pacific Indexed Accumulator 5
- Designed for early high cash value growth
- Pacific Indexed Performer LT2
- Great option to help supplement retirement income
- Pacific Indexed Protector 2
- Indexed Pacific Estate Preserver 2
- Designed to help your life insurance beneficiaries pay income and estate taxes, including state inheritance taxes
- Pacific Discovery Xelerator IUL
Pacific Indexed Accumulator 5
The Accumulator 5 is an indexed universal life insurance policy that focuses on early cash value growth, as opposed to an initially high death benefit.
Your premium is applied to your policy’s fixed account, which provides a guaranteed floor. From there, you can allocate your cash to various indexed accounts. The beginning segment value is recorded and after the required time (1-2 years) the new segment value is compared to the original segment value. Based on a formula, your cash value in the indexed account will be credited with interest.
Indexed universal life offers three different death benefits. You can choose form a level death benefit, an increasing death benefit that grows with your cash value, or a level death benefit plus return of premiums, minus any withdrawals.
Pacific Life VUL
Pacific Life also offers a similar variable universal life (VUL) product that focuses on early cash value growth. The policy provides a flexible premium based on your available cash value. You can also change the death benefit amount if needed.
Your premiums go into the policy’s temporary fixed accounts and receives a guaranteed interest rate. From there, you can allocate your premiums and accumulated value to either a long term fixed account or into a number of investment accounts, called sub-accounts, that act similar to mutual funds.
And like indexed universal life, three death benefit options are available.
Please note: VUL policies are inherently risky and are not recommended except for those who can properly manage and maintain the policy. We do not recommend VULs and we believe there are better opportunities in IULs or whole life due to the guarantees and protection from downside losses.
Life insurance with long term care rider
Long term care costs are much higher than most people think. Assisted living and in home health care can run in excess of $50,000 a year. A nursing home stay is even more, coming in close to $100,000 annually. In light of these statistics, you have to ask the hard question, do I need long term care insurance?
How long term care insurance works
If you are unable to perform 2 of 6 activities of daily living or you have a cognitive disorder, you or your agent can file a claim for long term care benefits. Once your elimination period ends, you receive reimbursement for expenses related to your long term care costs. You will continue to receive your income benefit for the benefit period, or until you recover.
Pacific Life offers Hybrid LTC+Life insurance policies called PremierCare Choice. This is a whole life insurance policy with long term care benefits. The Company has four different selections to choose from.
- Pacific PremierCare Choice 100
- Pacific PremierCare Choice Max
- Pacific PremierCare Choice Multi-Pay 100
- Pacific PremierCare Choice Multi-Pay Max
Pacific PremierCare Choice snapshot:
- Issue ages 30-75
- Benefit periods from 2 years to 8 years available
- Inflation protection rider:
- 5% Compound, 5% Simple, or 3% Simple
- Elimination Period
- o days for in home care
- 90 days for assisted living facility and nursing home
- Discounts available for spouses
- Return of premium benefit
If you are interested in Pacific Life long term care life insurance or if you want to compare long term care insurance quotes with the other companies we represent, please give us a call or send us an email today. An experienced long term care life insurance agent is standing by.
Life Insurance Riders
Pacific Life offers several life insurance riders to choose from based on the policy that you have. The riders include:
Child term rider: allows you to purchase a rider that covers every child in your home at one set price.
Guaranteed Insurability rider: excellent rider to add if looking for life insurance on children and young adults. It provides the opportunity to add additional coverage periodically until age 46 without evidence of insurability.
Premier LTC rider: long term care rider that helps with costs associated with long term care.
Premier Living benefits rider: accelerated death benefit rider that pays a portion of your death benefit to you if your are diagnosed with a qualifying terminal illness.
Waiver of premium: waives premium after 6 months of becoming completely disabled.
Negative Aspects of Pacific Life Insurance
Pacific Life is a great company and there aren’t any real “negatives” that life insurance seekers should be aware of. Most life insurance customers are happy with the product and service they receive from Pacific Life.
The only major drawback is that when you choose Pacific Life, you may be missing out on what another life insurance company has to offer. That’s not to say Pacific Life won’t offer you a great product, but there is a chance that another company would offer you something better or something more in line with your specific health and lifestyle.
For example, for our clients with diabetes, we have a few carriers that are our go to diabetic life insurance companies. If a diabetic applies with the wrong company, it could mean a higher premium or they could be declined.
Which life insurance companies are better than Pacific Life?
There is no way to answer this question because every situation is unique, and the answer will be different for each individual.
When a person applies for a life insurance policy, the life insurance company will try to assess the risk of insuring that person. They will take many things into consideration, such as: medical history, career, and overall health. Based on their own scale, they weigh each of these variables and then decide what kind of coverage they’ll underwrite and for what premium.
Pacific Life has the same process. It’s impossible to know whether or not Pacific Life is going to be the right life insurance company for you until we know about you! That’s what TermLife2Go is all about.
Can TermLife2Go tell me if Pacific Life is best for me?
Yes! Only after learning everything about you that a life insurance company would want to know can we begin to determine which company is really the best for you. We use the information we learn about you and your situation and compare it with the underwriting practices of dozens of the best life insurance companies in the United States.
For many, Pacific Life may be the best. But for some, it may not be. We have no vested interest in pushing a specific company. We never make a recommendation to you unless we wholeheartedly believe in our recommendation. You deserve to provide your loved ones with the best protection—and we help you do it.
So, what are you waiting for? Give us a call today and see what we can do for you!
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