Pacific Life Producer Alliance
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Pacific Life Producer Alliance
Pacific Index Foundation

Pacific Index Foundation is a deferred, fixed indexed annuity that provides safety of principal and the potential to earn interest based on the positive movement of two offered indexes, or through a fixed account that provides a guaranteed interest rate. With Pacific Index Foundation, the purchase payment is not invested in the market and therefore principal will never be lost due to market performance. However, the value of the contract can grow through the power of tax deferral, and any interest earned from the Interest-Crediting Options.

Along with the guarantees and principal protection that Pacific Index Foundation provides, it also offers a choice of an optional living benefit or an optional death benefit. Please refer to our Optional Benefits page for more information.

Pacific Index Foundation is not available in NY. Contact Pacific Life for availability information.



Lock In Earned Interest and Never Lose Principal Due to Market Performance

Pacific Index Foundation guarantees safety of principal like a traditional fixed annuity and combines it with growth potential linked to market-based indexes. Clients will never lose principal due to market performance as this product is not a security, and their money is not directly invested in the market. Plus, any interest gains as a result of positive index performance are added to the contract value and protected from any future market downturns. In addition, rates and caps are guaranteed for the entire length of the initial guaranteed period. 

Transparent Indexes and Simple, Flexible Interest-Crediting Options

Pacific Index Foundation offers five Interest-Crediting Options. Clients have the flexibility to allocate to one, or any combination of options, and can choose to reallocate their options at the end of the term. It also offers two easy-to-track indexes: S&P 500® and MSCI EAFE®.

Two Optional Benefits that offer Lifetime Income or Legacy Protection

For clients interested in lifetime income, Pacific Index Foundation offers an optional guaranteed minimum withdrawal benefit that can provide guaranteed lifetime income beginning at age 59½. For clients interested in legacy planning, there is an optional death benefit that can help protect and enhance the legacy your clients leave to their beneficiaries. 

Please refer to our Optional Benefits page for more information, including additional costs.


Getting Started

Premium: Limited premium. 1035 exchange/transfer requests must be submitted with the application and the funds received within 60 days after contract issue. Additional cash purchase payments are permitted within the first 60 days after contract issue, up to a maximum of $100,000.

Minimum Purchase Payment: $25,000 (qualified and nonqualified)

Maximum: $1 million; total purchase payments greater than $1 million require Pacific Life home-office approval in advance.

Maximum Annuitant/Owner Issue Age: 85

Maximum Annuitization Age: 95


Initial Guaranteed Periods

Choice of three initial guaranteed periods:

  • Five Years
  • Seven Years
  • Ten Years (Not available in California)

Only one initial guaranteed period may be selected per contract. Initial interest rates and caps are guaranteed for the length of the initial guaranteed period chosen.

All initial guaranteed periods may not be available at all times, in all states, or offered through all firms.

The initial guaranteed period determines:

  • The interest rates that will be earned on the Fixed Account Option and potentially earned with the Performance-Triggered Index Option, as well as the time period the rates are guaranteed. 
  • The cap applied to the Point-to-Point Option and the time period the cap is guaranteed. A cap is the maximum amount of interest that can be earned for the index term.
  • When clients will have access to the contract value without incurring a withdrawal charge or market value adjustment (MVA).  

Interest Breakpoints

The initial interest rates and caps will depend on the initial guaranteed period chosen and the total of all purchase payments received (minus withdrawals and applicable withdrawal charges) in the first year. Guaranteed rates and caps will never be set below the minimum stated in the contract.

The breakpoints that apply for all Interest-Crediting Options are:

  • Less than $100,000
  • $100,000 and more
Interest-Crediting Options
  • Fixed Account Option
    • Interest credited daily.
    • The initial rate is declared at contract issue and guaranteed for the length of the initial guaranteed period.
    • The renewal rate will never be lower than the minimum guaranteed interest rate stated in the contract.
  • Index-Linked Options
    • Interest may be credited at the end of an index term depending on the amount of change in an index price.
    • The initial interest rates and caps will depend on the withdrawal charge period chosen and the total of all purchase payments received. 
    • Four Indexed-Linked Options are available:
      • S&P 500® Index
        • 1-Year Point-to-Point Option (with cap)
        • 1-Year Performance-Triggered Index Option
      • MSCI EAFE® Index (Europe, Australasia, and the Far East)
        • 1-Year Point-to-Point Option (with cap)
        • 1-Year Performance-Triggered Index Option

Please note: Additional cash purchase payments up to $100,000 are permitted within the first 60 days of contract issue. Interest will be credited proportionately based on both the index return and the length of time the additional purchase payment is allocated, from the date the additional purchase payment is received to the end of the index term. This period may be less than the time frames listed above.

  • Transfers
    • Effective on a contract anniversary.
    • Transfer the value from the Fixed Account Option and expired index terms to any available Index-Linked Option or the Fixed Account Option.
    • Can be requested up to 30 days after the contract anniversary.

The Product and its MSCI EAFE® Index-Linked Options referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Products or any index on which such Products are based. The Policy Contract contains a more detailed description of the limited relationship MSCI has with Pacific Life Insurance Company and any related products.

The S&P 500 index is a product of S&P Dow Jones Indices LLC (“SPDJI”), and has been licensed for use by Pacific Life Insurance Company. Standard & Poor’s®, S&P®, and S&P 500® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pacific Life. Pacific Life’s product is not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make any representation regarding the advisability of investing in such product(s), nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 index.

The indexes are not available for direct investment, and index performance does not include the reinvestment of dividends.


Withdrawal Charges and Fees

Clients may select one of three initial guaranteed periods that correspond to the withdrawal charge schedule. Withdrawal charges apply only during the initial guaranteed period when the amounts taken are more than those discussed in the "Withdrawals without Charge" section below.

All States (Except CA)

In California, the withdrawal charge schedule is as follows:



No annual contract, mortality and expense, or administrative fees.

Market Value Adjustments (MVAs)

If either of the following occur during the withdrawal charge period, an MVA may apply.1 In addition to any applicable withdrawal charge fees:

  • Withdrawals in excess of 10% of the prior anniversary’s contract value (10% of purchase payments in the first year).
  • Annuitization of the contract value.

The MVA is based on a formula designed to respond to interest-rate movements. As a general rule, if interest rates have stayed the same or risen since the contract was issued, the MVA can reduce the amount withdrawn. If interest rates have fallen, the MVA can increase the amount withdrawn, up to a specified maximum. In no event will the MVA cause the withdrawal amount to be less than the Guaranteed Minimum Surrender Value.

There is no MVA assessed on withdrawals made after the withdrawal charge period has expired.

For more information about the MVA formula, please refer to the MVA endorsement that accompanies the contract. View daily index yields for the JP Morgan 10-Year U.S. Liquid Index here.


Withdrawals without Charge

Withdrawals are permitted 30 days after contract issue. In the first contract year, 10% of the total purchase payment is available with no withdrawal charge or MVA. In subsequent years, 10% of the previous contract anniversary's contract value is available annually with no withdrawal charge or MVA.

Additionally, clients may take withdrawals without a charge for the following reasons, subject to state variations1:

  • Required minimum distribution (RMD) withdrawals (only if calculated by Pacific Life).
  • Withdrawals after the first contract year if the owner or annuitant is diagnosed with a terminal illness (life expectancy of 12 months or fewer).
  • Withdrawals after 90 days of contract issue if the owner or annuitant is confined to an accredited nursing home for 30 days or more, as long as the confinement to a nursing home began after the contract was issued.
  • Death benefit proceeds.
  • Annuity income payments (available after the first contract year; an MVA may apply).
  • Withdrawals up to the Lifetime Annual Withdrawal Amount under the optional Enhanced Lifetime Income Benefit 3.  

Note: For Index-Linked Options, no interest is earned or credited on amounts withdrawn prior to the end of an index term.


Guaranteed Minimum Surrender Value
  • The Guaranteed Minimum Surrender Value is equal to 91% of purchase payments (minus any withdrawals), accumulated at a fixed interest rate, which is set at contract issue. 
  • Calculated at full withdrawal, death, or annuitization.
  • You are guaranteed to receive the greater of the contract value (minus applicable optional benefit charges, a market value adjustment (MVA), and/or withdrawal charges) or the Guaranteed Minimum Surrender Value.
  • Guaranteed for the life of the contract.
  • Receive payments based on the greater of the contract value or the Guaranteed Minimum Surrender Value.
  • Pro rata index-linked interest is credited to the contract value upon annuitization or death.

Options are available one year after contract issue. An MVA may apply.

Payout options available:

  • Life Only
  • Life with Period Certain (up to 30 years2)
  • Joint and Survivor Life
  • Period Certain (up to 30 years2)
  • Single/Joint Life with Cash Refund
  • Single/Joint Life with Installment Refund

Partial annuitization is not available.

Monthly, quarterly, semiannually, annually

Minimum Annuity Income Payment Amount

Standard Death Benefit

For no additional cost, if death occurs before annuity income payments begin, a death benefit equal to the greater of the contract value or the Guaranteed Minimum Surrender Value is paid upon the death of the first owner or the last annuitant. Pro rata index-linked interest is credited to the contract value on the notice date (the date Pacific Life receives the death benefit in good order).


1In California, MVAs are not accessed on withdrawals. Waivers for nursing home and terminal illness are not available.

2For qualified contracts, the maximum length of time for the Period Certain options may be less than 30 years, if necessary, to comply with RMD regulations for annuities.

Fixed annuities are long-term contracts designed for retirement. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge and a market value adjustment (MVA) also may apply. Withdrawals will reduce the contract value, the value of the death benefit, and the Guaranteed Minimum Surrender Values, and also may reduce the value of any optional benefits.

Pacific Life guarantees, including interest rates and subsequent income payments, are backed by the claims-paying ability of Pacific Life. No guaranteed rate will be less than the minimum guaranteed rate stated in the contract. Pacific Life determines, at its discretion, annual interest rates in excess of the stated minimum guarantee in the contract.

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