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Pacific Life Insurance Company Review

The purchase of life insurance can help to complete most any overall financial plan. Without it, you could end up leaving those you care about vulnerable to unpaid debts in case of the unexpected. Your loved ones could also struggle to pay their everyday living expenses without needed income – income which could be replaced with a good, solid life insurance policy.

When you are buying a life insurance policy, it is important to not only ensure you have the proper type and amount of coverage. It is also essential to know the insurance company you are purchasing the policy from is strong and stable from a financial standpoint. Should the unthinkable occur and your loved ones be required to file a claim, you will want to know the funds will be paid out to them as promised.

While there are some insurers who may not be rated highly when it comes to paying out their claims, one who is financially strong – and has a long and positive reputation in the insurance industry – is Pacific Life Insurance Company.

The History of Pacific Life Insurance Company

Pacific Life Insurance Company began its operation back in 1868 – approximately 150 years ago – in San Francisco, California. The very first life insurance policy the company issued was to a man by the name of Leland Stanford, who is the founder of the well-known Stanford University.

Over the past century and 1/2, Pacific Life Insurance Company has grown and expanded. The company has also grown, and has greatly expanded its overall product line to include a wide variety of different insurance and investment options for both consumers and businesses.

However, while Pacific Life is large enough to be listed on the Fortune 500, the company still remains privately held. This means it does not have stock shares listed on a public stock exchange, nor stockholders. Because of this, the company is better able to make its financial and other decisions based more upon what will benefit its policyholders and its employees. The company’s headquarters are located in Newport Beach, California.

Our Pacific Life Insurance Company Review

Pacific Life Insurance Company is comprised of several different business components. These include its Life Insurance Division, its Aviation Capital Group, and Pacific Life Re. Yet, while each of these divisions has a specific customer niche, the company overall has the mission “To be the company of choice for clients who seek asset protection and growth.”

The company is very strong and stable financially. As of the end of 2015, the company had approximately $800 billion in life insurance in-force. It had also paid out more than $2 billion in insurance and annuity benefits.

Pacific Life Insurance Company has attained numerous accolades throughout the years. Some of its most recent include the following:

  • #1 in universal life and indexed universal life insurance sales;
  • #7 largest in total life insurance sales;
  • #14 largest in fixed annuity sales;
  • #11 largest in variable annuity sales.

Pacific Life also offers a great deal of education directly on its website. This can be helpful for clients and potential clients in learning more about insurance and investments. For example, there are numerous videos and articles which go over how insurance and investments work, and why individuals and businesses should consider various options.

Pacific Life Insurance Company Ratings

The company is considered to be quite strong financially, and it also has a very good reputation for paying out its policyholder claims. This is reflected in the ratings it has received from the insurer rating agencies. These include the following:

  • A+ (Superior) from A.M. Best
  • A+ (Strong) from Fitch
  • A1 (Good) from Moody’s
  • AA- (Very Strong) from Standard & Poor’s

Although Pacific Life Insurance Company is not an accredited company of the Better Business Bureau (BBB), it does have a grade of A+ from the BBB. This is on an overall grade scale of between A+ through F.

Over the past three years, Pacific Life Insurance Company has closed out a total of only three customer complaints – one of which has been within the past year. Of these three complaints, two had to do with the company’s products and / or services, and the other one was regarding the company’s advertising and / or sales issues.

Life Insurance Products Offered by Pacific Life

Pacific Life offers some different life insurance products to choose from. This can be helpful for its customers when designing the appropriate coverage for their needs. It can also help customers if their needs change because policies may be converted to and / or added to via riders and endorsements. The coverage offered through Pacific Life Insurance includes both term and permanent protection.

Term Life Insurance Coverage

With term life insurance, the insured will obtain pure death benefit coverage. There is no cash or savings component with term life – these policies can often be quite affordable. Those who are younger and in good health can typically purchase a large amount of term life insurance for their needs. Term can also provide a solution for covering “temporary” needs. This is because policies are sold for a set number of years, such as 10, 20, or 30.

Pacific Life Insurance Company offers the Pacific PRIME Term life insurance product. Here, an individual may choose coverage for ten years, 15 years, 20 years, or 30 years. These plans offer coverage of up to $250,000 in death benefit – and the premium may be as low as $10 per month.

Throughout the time frame of the policy, the insured may be able to “convert” this policy over to a permanent life insurance policy. They may do so without the need to prove insurability. This can be particularly beneficial if the insured has contracted an adverse health condition.

Permanent Life Insurance Coverage

With permanent life insurance coverage, an insured will have both death benefit protection and cash value build up. The cash can grow tax-deferred, meaning  there is no tax due on the gain in the account unless or until the policyholder withdraws the funds.

These funds may be taken out of the policy for any reason, such as for supplementing retirement income, for paying off debts, for paying a child or a grandchild’s college education expenses, or even for taking a nice vacation.

There are several different types of permanent life insurance coverage offered by Pacific Life Insurance Company. These include universal life, indexed universal life, and variable universal life insurance coverage.

With a universal life insurance policy, the insured has some flexibility he or she can often choose – within certain guidelines – how much of the policy’s premium to put into the cash value and how much to put towards the insurance (death benefit) coverage. They may also be able to choose the due date of their premium payment.

There is also indexed universal life insurance coverage. With this type of policy, the cash value’s growth is dictated by the performance of an underlying index, such as the NASDAQ or the S&P 500. With these policies, when the underlying index performs well, the cash value will go up. If, however, the index performs poorly, the cash value will not lose value – but instead typically be credited simply with a 0% for the period. This can provide the insured with protection of his or her principal over time. Pacific Life Insurance Company offers several different indexed universal life insurance options.

There is also variable life insurance coverage. Here, the cash value growth is dictated by equities. When the underlying equity investments perform well, the cash value can do quite well. If, however, the underlying market performs poorly, the policy holder’s funds can be at risk. Pacific Life offers four different variable life insurance policies to choose from.

In addition, Pacific Life also provides a life insurance / long-term care combination policy option. This can help an individual to pay for costly long-term care expenses if they should require this type of care. If, however, they do not need long-term care, the policy will pay out a death benefit to the individual’s beneficiaries upon death.

This product can answer the objection of “use it or lose it” where many people have with purchasing stand-alone long-term care insurance policies. It is essentially a universal life insurance policy which also pays out long-term care benefits as a part of the policy’s funds.

Other Products Offered

In addition to life insurance, Pacific Life Insurance Company also offers other wealth accumulation and protection products. Products for individuals include:

  • Annuities – With an annuity, an individual (or a couple) can obtain a guaranteed lifetime stream of income in retirement. This can alleviate the worry of running out of income and / or savings. With these annuities, the lifetime income stream is guaranteed by Pacific Life.
  • Mutual Funds – The mutual funds are provided by Pacific Life are professionally managed investments offer liquidity and diversification. These products are offered in a wide variety of different classes, from aggressive growth to conservative. Because of this, they can fit a plethora of different investors’ needs.

Products for business clients include the following:

  • Life Insurance – In addition to just individual life insurance coverage, Pacific Life also offers employer-sponsored life insurance coverage for businesses.
  • Pension Risk Transfer – Pacific Life Insurance Company also offers various pension risk transfer strategies for defined benefit and defined contribution plans.
  • Real Estate Investments – The company also provides commercial real estate finance and investment expertise in support of life insurance, investment, and retirement solutions businesses, as well as for its private party and securitized servicing customers. These include commercial mortgage loan and real estate investments. Also, the company’s real estate asset management area offers some administrative, analytic, accounting, cash management, and technology services.
  • Structured Settlements – Structured settlement annuities can provide tax-free, periodic payments over a set period. Pacific Life Insurance Company offers help with the designing and the structuring of such settlements for businesses.

Is Pacific Life Insurance Company Right For You?

When seeking the best life insurance coverage rates, it is typically the best course of action to work with a company or an agency who has access to more than just one insurer. You will be able to more directly compare policies, benefits, and premium quotes – and from there, you will be able to determine which will be the very best coverage for you.

If you are in the market for life insurance, we can help. We work with many of the top life insurance carriers in the industry today, and we can assist you with obtaining all of the key details you will need for making a purchase decision. All you need to do to move forward is just simply fill out the form on this page.

We understand  the purchase of life insurance may seem a bit daunting. There are many variables to choose from – and a lot of companies are available in the industry today. The good news is we can assist you with narrowing down your options so you know which may be the best one for your specific coverage needs. So, don’t leave the financial protection of your loved ones to chance. Contact us today – we’re here to help.

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