In a market desperate for innovation, Pacific Life Insurance Company appears to have answered the call with a new, optional “Indexed-Linked Annuity Adjustment Payment Rider” (ILAAPR) for its structured settlement products.
Although life insurance companies first offered equity-indexed annuities during the mid-1990’s to compete with indexed mutual funds, Pacific Life’s ILAAPR represents the first U.S. equity-indexed structured settlement option.
Pacific Life’s ILAAPR is linked to the Standard & Poor’s 500 (S&P 500) index which includes a representative sample of common stocks traded on the New York Stock Exchange, American Stock Exchange, and NASDAQ National Marketing System. One of the U.S. Commerce Department’s leading economic indicators, the S&P 500 represents over 70% of the total domestic U.S. equity market capitalization.
