Most consumers are quite familiar with the branding of Pacific Life, namely because of the breaching whale which has adorned its logo and has become the centerpiece for its marketing efforts nationally by magazine and television ads alike. They are not scared to build their brand through commercials and other major media advertisements, so it’s likely a household name.
Yet, does it make their life insurance products your best bet?
The review of Pacific Life Insurance Company below is going to help you discover the answer to this question, and more. We discuss financial strength, products, and a few other details you may not have thought of previously. As always, let this be no more than a supplemental review to researching where you should apply. Let’s get going.
Our Pacific Life Insurance Company Review
Pacific has a storied history, where the governor of California in 1868, Leland Stanford, founded the company as Pacific Mutual Life Insurance Company. After nearly 20 years in business, the company continued to grow, and began its diversification efforts into accident policies. Another 20 years passed and the company merged together with another company, Conservative Life, another west coast company, for greater size and impact of the local markets.
In 1971, PIMCO was started, which was the investment management company under the Pacific name. 1997 was the year the company dropped its mutual status, moving instead towards a mutual holding company and becoming what it is today, Pacific Life Insurance Company. Just 10 years later, Pacific Asset Management was born giving Pacific even further prominence in the financial sector, allowing advisory services.
Financial Strength & Ratings
Pacific, like it’s logo represents, embodies strength, high performance, and consistency. Its financial report reflects this, as they’ve been awarded an “A” or better by all four rating agencies, something only a small handful of life insurers can say today. These include Standard & Poor’s, Fitch, Moody’s and A.M. Best, and this moves their Comdex score near the top ten percent and among the most elite life insurance companies in the United States.
Here’s a quick break down of their most current ratings:
- A.M. Best – A+
- Fitch – A+
- Moody’s – A1
- Standard & Poor’s – AA-
While not just formidable in quality, Pacific life has grown to an enormous company, boasting $129B in company assets. The company operates all across the United States, but even has a footprint in Asia and Europe as well, with business ties to insurance, investments, and even aviation.
Pacific Life has long stood for giving, and its charitable efforts continue to grow in both its local communities, as well as nationally. In 2013 alone, more than 5 ½ million dollars was given out via grants and charity, going towards the Red Cross, Meals on Wheels, Conservation International for the Ocean Health Index, United Way and more.
Like its name, it’s a huge helping hand in assisting the research, the preservation and many different aspects of aid to the Pacific Ocean and it’s living ecosystem. Even predating its breaching whale icon, Pacific has supported the conservation of whales both in the Pacific and worldwide.
Life Insurance Policies Available
Since its inception, Pacific has been a provider of life insurance, and it continues to be innovative and ethical. With products to fill all the categories for its clients and consumers, from term to permanent, its scope of products lends itself to individuals, families, and also businesses of all sizes. They currently offer:
- Indexed Universal
- Variable Universal
The Pacific PRIME Term, the only available term life insurance option from Pacific Life, is just your basic term life insurance with a flat death benefit and level premiums, all specified for a temporary duration of your choosing. It comes in 10-year, 15-year, 20-year, and 30-year options to meet your mid- to long-term needs.
Pacific Life does not put much effort in trying to be a leader in term coverage, and they do make the push to permanent, allowing you to convert this term policy to a universal without any additional underwriting (though your costs will rise, per thousand).
As you’ll see below, the target market for Pacific is their entire universal lineup. Not including the indexed or variable options, there are six policies which fall under the standard universal umbrella. They are:
- Pacific Prime UL – NLG (no lapse guarantee)
- Versa-Flex NLG
- Versa-Flex PRO II
- Pacific Estate Preserver III
- Pacific PremierCare® Advantage
- Pacific PremierCare Advantage® Multi-Pay
It may look like a wall of words, but each policy does have it’s own defined use. Depending on your age, what you’re looking to accomplish, and how much permanent death benefit you need, one may be a better option than the next.
Indexed Universal Life
For those who seek a little more than just life insurance coverage, they offer multiple types of policies which are tied to mutual funds or indices of the stock markets, so its participants can attempt to grow additional cash and even face amount of the policy as time passes. While this is a more advanced type of insurance, it is becoming more mainstream in today’s modern world where consumers track their progress in real time.
A little more involved than a regular universal policy, an indexed universal ties the cash accumulation portion of the contract to a market index, typically the S&P 500, to offer the potential of increased gain beyond basic stated interest rates. Four different products are available under this specific type, including:
- Pacific Indexed Protector 2
- Pacific Indexed Performer LT 2
- Pacific Indexed Accumulator 5
- Pacific Indexed Estate Preserver 2
As you can tell by the names themselves, they also are tailored to serve a specific purpose, whether it’s death benefit, cash accumulation, or simply preserving an estate from taxes down the road.
Variable Universal Life
If you are one who can stand a little more risk to get the possibility of more gain, a variable life insurance policy may be for you. You will need to talk with a registered representative in order to buy it because of these assumed risks. Here are the options you’ll have from Pacific Life Insurance Company:
- Pacific Select VUL
- Pacific Select VUL – Accumulation
- Pacific Select Survivorship VUL
- Pacific Prime VUL
The first is your most basic variable universal policy, while the second is aimed at cash accumulation first and foremost. The third is a survivorship policy, so it’s spread across two lives and used for things like estate planning. The fourth and final is best utilized for asset preservation.
In any case, no matter your needs, risk aversion, or preference, Pacific Life probably has what you can use.
Our Final Thoughts
Pacific is a financially strong and secure company with a historical backbone here in the United States, and it’s business model is one which aims to continue to do so in the coming years with special attention to people, community, and wildlife.
There are lots of things to love about Pacific Life and their insurance products, but they do have their limitations. For the cheapest term rates, you may want to look elsewhere, though if you want the brand, you won’t pay much more. Permanent insurance from Pacific is a decent buy, though they are missing a true whole life insurance product from their lineup.
Altogether, we would recommend the Pacific Life Insurance Company where it meets your needs and budget.