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Fixed Indexed Annuities

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Enjoy principal protection with the potential for growth, and if needed, get income for life.

The Pacific Index Choice℠ fixed indexed annuity may be right for you if you’re looking for:

  • Principal protection with the potential to earn an attractive rate of return without being directly invested in the market
  • An optional Living Benefit* providing a monthly “paycheck” guaranteed to grow each year income is deferred (up to 10 years)

See fixed indexed annuity rates offered through Schwab.

Pacific Index Choice is not available in New York.

Contact an annuity specialist at


Pacific Index Choice offers:

  • *Optional Living Benefit is available for an additional cost.
  • †You can only elect one optional benefit per contract.

Pacific Index Choice overview

Pacific Life Insurance Company
Financial strength—Standard & Poor’s1
Maximum issue age
Minimum initial purchase
Maximum purchase
Additional purchase
Additional cash purchase payments are permitted within the first 60 days after contract issue, up to a maximum of $100,000. All payments are subject to the maximum purchase amount.
Initial interest rate guaranteed periods
Six, eight, or 10 years. After the initial guaranteed period expires, renewal interest rates and caps will be declared on each contract anniversary. The renewal rates and caps will never be less than the minimums stated in the contract.
Withdrawal charge schedule
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11
9% 8% 8% 7% 6% 4% 4% 3% 2% 1% 0%

Withdrawal charge schedule will always equal the initial interest rate guarantee period. For example, the 6-year initial interest rate guarantee period will have a 6-year withdrawal charge schedule, the 8-year initial interest rate guarantee period will have an 8-year withdrawal charge schedule, and the 10-year initial interest rate guarantee period will have a 10-year withdrawal charge schedule.

Credit Enhancement3
Upon purchase, the contract value receives an immediate credit. The credit is a percentage of the purchase payment and may vary by the initial guaranteed period selected. The credit enhancement is not counted as a purchase payment, will not be returned under the free-look provision, and is treated as earnings for tax purposes when distributed.
Interest-Crediting Options
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. The index-linked breakpoints are:
  • Less than $100,000
  • $100,000 and more
Six Index-Linked Options4
S&P 500® Index MSCI All Country World Index (ACWI®)
1-Year Point-to-Point Option with cap 1-Year Point-to-Point Option with cap
2-Year Point-to-Point Option with cap 2-Year Point-to-Point Option with cap
Declared Index Interest Option Declared Index Interest Option
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.
Interest-Crediting Option transfers
On each contract anniversary, you may transfer money to and from the Fixed Account Option and any Index-Linked Option when the term has ended. Transfer cannot be made to or out of an active 2-Year Point-to-Point Option.
Guaranteed Minimum Surrender Value
The Guaranteed Minimum Surrender Value (GMSV) is equal to purchase payments, minus prior withdrawals and applicable withdrawal charges, accumulated at a fixed interest rate, set at contract issue. The GMSV is guaranteed for the life of the contract, but excludes the credit enhancement and applies at:
  • Full withdrawal (withdrawal charges apply)
  • Death
  • Annuitization
Access to your money


Withdrawals may begin as soon as 30 days after contract issue and are available through:

  • Systematic withdrawals. Withdraw at least $500 ($100 for electronic funds transfer) either monthly, quarterly, semiannually, or annually.
  • Partial withdrawals. Withdraw $500 or more at any time.

Withdrawals without charges5

Withdraw amounts up to 10% of your purchase payments in the first contract year and 10% of your contract value during the remainder of the initial guaranteed period (based on the contract value from the previous contract anniversary) without a withdrawal charge or market value adjustment (MVA).

Withdrawals that incur a charge

Withdrawal charges apply only during the initial guaranteed period (6 years, 8 years, or 10 years) when the amounts taken are more than 10% of your purchase payments in the first contract year and 10% of your contract value during the remainder of the initial guaranteed period.

Also, withdrawals and contract values annuitized before the end of the initial guaranteed period, in excess of 10% of the prior anniversary’s contract value (10% of purchase payments in the first year), may be subject to an MVA (in addition to any applicable withdrawal charges).

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 withdrawal amount. If interest rates have fallen, the MVA can increase the withdrawal amount, up to a specified maximum. In no event will the MVA cause the withdrawal amount to be less than the Guaranteed Minimum Surrender Value.

No MVA6 is assessed on withdrawals made after the initial guaranteed period has expired.

Death Benefit
For no additional cost, the standard death benefit can help protect an amount for your beneficiaries and may avoid the cost and delays of probate. If death occurs before annuity income payments begin, the standard death benefit is equal to the greater of the contract value or the Guaranteed Minimum Surrender Value and is paid upon the death of the first owner or last annuitant. If the death benefit is payable in the first year, the credit enhancement will be recaptured on a proportionate basis (except in Connecticut). Index-linked interest is credited to the contract value on a prorated basis on the notice date (the date the death benefit claim is received in good order).
Additional Benefits
  • Enhanced Lifetime Income Benefit: An optional guaranteed minimum withdrawal benefit. Prior to the maximum annuity date, this benefit can be an alternative to annuitization to receive guaranteed lifetime withdrawals beginning at or after age 59½. It also offers the ability to increase lifetime withdrawal amounts through a 7% Annual Credit that will continue for up to 10 years, as long as no withdrawals are taken during the 10-year period. This credit is not added to your contract value and is not a rate of return. The current annual charge for both Single Life and Joint Life is 0.75% of the Protected Payment Base (up to a maximum of 1.50%).
  • Interest Enhanced Death Benefit:7 An optional benefit that guarantees your death benefit amount will grow annually by the amount of interest credited to your contract, plus an additional 2%, for either 20 years or until age 85, whichever is earlier (in some states there is also a maximum benefit of 250% of purchase payments adjusted for withdrawals). The charge for this benefit is 0.40% of the Death Benefit Base deducted annually from your contract value (not from the Death Benefit Base). Your beneficiaries will receive the greater of your Interest Enhanced Death Benefit Base or the standard death benefit amount upon your death.

†You can only elect one optional benefit per contract.

Questions? We're ready to help.

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Fixed indexed annuity frequently asked questions

  • What is a fixed indexed annuity?

    A fixed indexed annuity is a long-term investment that provides principal protection, guaranteed lifetime income, and the opportunity for growth from a fixed interest rate or interest based on the performance of an external index. Assets are not directly invested in an external index, and interest is tax-deferred. For an additional cost, a fixed indexed annuity may also offer an optional guaranteed lifetime withdrawal benefit (GLWB) that provides guaranteed lifetime income for you and your spouse. Also, for an additional cost, a fixed indexed annuity with an optional death benefit can provide you with the confidence of knowing your assets are protected for your beneficiaries.

  • When might fixed indexed annuities be a good option for your situation?

    A fixed indexed annuity may be a good option for you if you’re looking for principal protection with the opportunity to earn an attractive rate of return. Also, if you’re concerned about outliving your retirement assets, a fixed indexed annuity provides guaranteed income for a specific period or life, depending on your needs.

  • What other factors should you be aware of when considering a fixed indexed annuity?

    A fixed indexed annuity may have withdrawal or surrender charges (a charge on an early withdrawal based on the guaranteed period of the policy or cancellation of the policy), and some contracts may impose a market value adjustment if you make a withdrawal during one or more of the guaranteed periods offered under the policy. Generally, any withdrawals in a given year during the initial guaranteed period that exceed 10% of your account value will be subject to withdrawal charges and/or a market value adjustment.

    Withdrawals from a fixed indexed annuity will reduce the value of your annuity and can be subject to ordinary income tax. Withdrawals prior to age 59½ may also be subject to a 10% federal tax penalty.

    A Schwab Financial Consultant can help you determine which annuity might fit your retirement strategy.

All guarantees depend on the claims-paying ability and financial strength of the issuing insurance companies, not Schwab.

The decision to purchase an annuity within a qualified plan or IRA should not be based on the annuity’s tax-deferred accrual feature, as this is already provided by the annuity or qualified plan itself.

Charles Schwab & Co., Inc. (“Schwab”), a licensed insurance agency, distributes certain insurance and annuity contracts that are issued by insurance companies that are not affiliated with Schwab. Not all products are available in all states.

  1. 1. Current published financial strength ratings confirmed as of 2018. Standard & Poor’s ratings range from AAA to CC. Ratings are subject to change. While ratings can be objective indicators of an insurance company’s financial strength and can provide a relative measure to help select among insurance companies, they are not guarantees of the future financial strength and/or claims-paying ability of a company.
  2. 2. Total amounts of more than $1 million require Pacific Life home-office approval in advance. Pacific Life reserves the right to change the minimum and maximum amounts.
  3. 3. Credit enhancements are not counted as purchase payments, are treated as additional earnings for tax purposes, and are not returned under the free-look provision. If the death benefit is payable in the first year, the credit enhancement will be recaptured on a proportionate basis (except in Connecticut).
  4. 4. Interest may be credited at the end of an index term, depending on the amount of change in an index price. If there are additional purchase payments within the first 60 days after contract issue, interest will be credited proportionately based on the index return from the time the additional purchase payment is credited to the contract to the end of the term. This period may be less than the index-linked time frames.
  5. 5. The withdrawal charge and the MVA may be waived for required minimum distribution (RMD) withdrawals (only if calculated by Pacific Life), withdrawals after the first contract year if you are diagnosed with a terminal illness (life expectancy of 12 months or less and not available in California), withdrawals after 90 days of contract issue if you are 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 (not available in California and Massachusetts), death benefit proceeds, annuity income payments (available after the first contract year; an MVA may apply), and withdrawals up to the Lifetime Annual Withdrawal Amount under the optional Enhanced Lifetime Income Benefit. Please refer to the Enhanced Lifetime Income Benefit brochure for more details and the exact withdrawal percentages you are able to take without a charge or MVA. For Index-Linked Options, no interest is earned or credited on amounts withdrawn prior to the end of an index term. 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 an MVA also may apply. Withdrawals will reduce the contract value and the value of the death benefits, the Guaranteed Minimum Surrender Value, and also may reduce the value of any optional benefits.
  6. 6. The MVA does not apply in Alaska, California, Iowa, Minnesota, Missouri, New Hampshire, Oklahoma, and Washington.
  7. 7. Not available in California.

Fixed annuities issued by Pacific Life (Newport Beach, CA) are available through licensed, independent third parties.

The Product and its MSCI ACWI® 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, or their respective affiliates, and none of such parties makes 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.

Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. Only an advisor who is also a fiduciary is required to advise whether the product purchase and any subsequent action taken with regard to the product are in their client’s best interest.

Contract Form Series: 30-1209, ICCll:30-1209
Rider Series: 20-1211-2, ICCll:20-1211-2, 20-12110R-2, 20-1210-2, ICCll:20-1210-2, 20-12100R-2, 20-1500, ICC15:20-1500