Definition of Terms – Unless redefined below, the terms defined in the Contract will have the same
meaning when used in this Rider. For purposes of this Rider, the following definitions apply:
Step-Up – An increase in the Guaranteed Protection Amount to an amount equal to 100% of the
Contract Value, determined as of a Step-Up Date.
Step-Up Date – Any Contract Anniversary beginning with the third (3rd) anniversary of
the Rider Effective Date on which you elect a Step-Up in the Guaranteed Protection Amount.
Term – The ten (10) year period beginning on the Rider Effective Date or on a Step-Up Date,
whichever is later.
Guaranteed Protection Advantage 3 – You have purchased a Guaranteed Protection Advantage 3 Rider.
Subject to the terms and conditions described herein, we will increase the Contract Value to the
Guaranteed Protection Amount (as determined under the Guaranteed Protection Amount provision of
this Rider), if at the end of the Term, the Contract Value is less than the Guaranteed Protection
Amount.
This Rider may be purchased on the Contract Date or on any subsequent Contract Anniversary,
provided:
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the age of each Annuitant is 85 years or younger on the date of purchase; and
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(b) |
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the date of purchase is at least ten (10) years prior to the Annuity Date. |
The date of purchase is the Rider Effective Date as shown on Page 4.
For the Contract Value to be increased to the Guaranteed Protection Amount at the end of the Term,
the entire Contract Value must be invested for the entire Term according to an asset allocation
program established and maintained by us for this Rider.
Annual Charge – An annual charge for expenses related to this Rider will be deducted from the
Investment Options on a proportionate basis relative to the Account Value in each such Investment
Option.
The annual charge is deducted, in arrears, on each Contract Anniversary that this Rider remains in
effect. The annual charge is equal to [0.45%] (not to exceed a maximum annual charge percentage of
1.00%) multiplied by the Guaranteed Protection Amount on the day the charge is deducted.
The annual charge percentage established on the Rider Effective Date will not change during the
Term, unless you elect a Step-Up in the Guaranteed Protection Amount.
If this Rider terminates on a Contract Anniversary, the entire annual charge for the prior Contract
Year will be deducted from the Contract Value on that Contract Anniversary.
If the Rider terminates prior to a Contract Anniversary, we will prorate the annual charge. The
prorated amount will be based on the Guaranteed Protection Amount as of the day the Rider
terminates. Such prorated amount will be deducted from the Contract Value on the earlier of the
day the Contract terminates or the Contract Anniversary immediately following the day the Rider
terminates.
We will waive the annual charge if the Rider terminates as a result of the death of an Owner or
sole surviving Annuitant, or upon full annuitization of the Contract.
Any portion of the annual charge we deduct from any of our fixed-rate General Account Investment
Options (if available under the Contract) will not be greater than the annual interest credited in
excess of that option’s minimum guaranteed interest rate.
Change in Annual Charge – The annual charge percentage may change if you elect a Step-Up in the
Guaranteed Protection Amount. The annual charge percentage will never exceed the annual charge
percentage then in effect for new issues of this same rider. If we are no longer issuing this
rider, any change in the annual charge percentage will not result in an annual charge percentage
that exceeds the maximum annual charge percentage specified in the Annual Charge provision.
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If the Guaranteed Protection Amount is never stepped-up, the annual charge percentage established
on the Rider Effective Date is guaranteed not to change.
Guaranteed Protection Amount – The Guaranteed Protection Amount is equal to (a) plus (b) minus (c);
where:
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(a) |
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is the Contract Value at the start of the Term; |
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(b) |
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is 100% of each subsequent Purchase Payment paid to the Contract during the first year
of the Term, provided the Contract allows for subsequent Purchase Payments after the first
Contract Year; and |
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(c) |
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is a pro rata adjustment for withdrawals made from the Contract during the Term. The
adjustment for each withdrawal is calculated by multiplying the Guaranteed Protection
Amount prior to the withdrawal by the ratio of the amount of the withdrawal (including any
applicable withdrawal charge) to the Contract Value immediately prior to the withdrawal. |
For purposes of determining the Contract Value at the start of the Term:
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(1) |
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if this Rider is purchased on the Contract Date, the Contract Value is equal to the
Initial Purchase Payment; or |
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(2) |
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if this Rider is purchased on a Contract Anniversary or if you elect a Step-Up in the
Guaranteed Protection Amount, the Contract Value is equal to the Contract Value on that
Contract Anniversary or on that Step-Up Date. |
Election of Step-Up in Guaranteed Protection Amount – You may elect, on any Contract Anniversary
beginning with the third (3rd) anniversary of the Rider Effective Date and before the
Annuity Date, to increase the Guaranteed Protection Amount to an amount equal to 100% of the
current Contract Value as of the Step-Up Date. The annual charge percentage may change as a
result of any step-up in the Guaranteed Protection Amount (see Change in Annual Charge provision).
Your election of a Step-Up in the Guaranteed Protection Amount must be received, in a form
satisfactory to us, at our Service Center within thirty (30) days after the Contract Anniversary on
which the Step-Up is effective.
Once a Step-Up has been elected and is in effect: (a) another Step-Up may not be elected until on
or after the third (3rd) anniversary of the latest Step-Up Date; and (b) a new ten (10)
year Term will begin effective as of that latest Step-Up Date. We will provide you with written
confirmation of your Step-Up election.
We will not permit a Step-Up if the new ten (10) year Term will extend beyond the maximum Annuity
Date/Age specified under the Contract.
Additional Amount – On the last day of the Term, we will apply an additional amount to the Contract
if the Contract Value on such day is less than the Guaranteed Protection Amount. The additional
amount will be equal to the difference between the Contract Value on the last day of the Term and
the Guaranteed Protection Amount.
If, on the last day of the Term, the Contract is annuitized, the first death of an Owner or the
death of the last surviving Annuitant occurs, or a full withdrawal of the amount available for
withdrawal is made, the Contract Value will reflect any additional amount as described in this
provision, prior to the payment of any annuity, death or full withdrawal benefits.
We will not apply an additional amount if the Contract Value on the last day of the Term is greater
than the Guaranteed Protection Amount.
Continuation of Rider if Surviving Spouse Continues Contract – If the Owner dies during the Term
and if the surviving spouse of the deceased Owner elects to continue the Contract in accordance
with its terms, then the provisions of this Rider will continue until the end of the Term.
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Termination of Rider – Except as otherwise provided under the Continuation of Rider if Surviving
Spouse Continues Contract provision of this Rider, this Rider will automatically terminate at the
end of the Term or, if earlier, upon the occurrence of one of the following events:
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(a) |
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the day any portion of the Contract Value is no longer invested according to an asset
allocation program established and maintained by us for this Rider; |
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(b) |
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the day we receive notification from you to terminate this Rider; |
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(c) |
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the day of the first death of an Owner or the date of death of the last surviving
Annuitant; |
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(d) |
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the day the Contract is terminated in accordance with the provisions of the Contract;
or |
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(e) |
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the Annuity Date. |
Rider Effective Date – This Rider is effective on the Contract Date, unless a later date is shown
below.
Rider Effective Date: [date]
All other terms and conditions of the Contract remain unchanged by this Rider.
PACIFIC LIFE INSURANCE COMPANY
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| Chairman and Chief Executive Officer
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Secretary |
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