Q:

How safe is a fixed annuity from Pacific Life?

A:

Quick Answer

Pacific Life makes no claims as to the safety of its fixed annuities products, and consumers who require details about its fixed annuities can go to Annuities.PacificLife.com for information. Pacific Life offers numerous options for deferred and single-premium fixed annuities, as noted by Pacific Life.

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Full Answer

Pacific Life has an online guide about fixed annuities that consumers can read, which covers the various types of fixed annuities and how they are structured, as stated by Pacific Life. Consumers should carefully weigh the risks of annuities before investing. Reduced spending power is a risk factor that can affect monthly income over the long-term, according to U.S. News and World Report. Most fixed annuities don't automatically adjust for increased living expenses due to inflation, and while some fixed annuities do include inflation protection, these are much more expensive.

Surviving spouses are at risk of having annuity payments cut off, if the spouse who is attached to the annuity dies. This risk is avoided when both spouses obtain a joint life annuity. A third risk is the company that issued the fixed annuity goes out of business, and the annuity is lost, because they are unprotected by the federal government. Consumers should check with their state insurance commissioner to see if the state offers annuity loss protection, as suggested by U.S. News and World Report.

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