Index-Linked Annuity Payment Adjustment Rider (ILAPA)

ILAPA is an optional rider that offers the potential for increased payment amounts for a structured settlement while preserving the current benefit level. By adding ILAPA to a structured settlement contract issue, changes to the payment amount have the potential to increase, but will never decrease.


An Opportunity for Your Clients' Payments to Grow

Payments Never Decrease, May Increase Up to 5%
  • Payments can increase based on positive S&P 500® index1 returns.
  • No decrease in payments if the S&P 500® index declines or remains flat.

The Index-Linked Annuity Payment Adjustment Rider is not a security and does not participate directly in the stock market or any index, so it is not an investment. It is an insurance product designed to help you prepare for your future.

Selecting the Index-Linked Annuity Payment Adjustment Rider may result in a varying benefit amount based on the annuity type and period selected.


How ILAPA Works


If the S&P 500® index rises (up to 5%)

When the S&P 500® index rises over a period of 12 months (referred to as "Index Measurement Periods"), your payments will also rise, subject to an annual maximum of 5%.

If the S&P 500® index decreases or is flat

When the S&P 500® index has a negative or zero return, there is no reduction to the payment amount.

Hypothetical ILAPA Illustration

Growth and Protection

You can earn additional payment amounts based on any positive movement of the S&P 500® index.
  • The four-year returns for the S&P 500® index are for hypothetical purposes only.
  • The rider was added when the annuity was purchased.
  • Initial structured settlement annuity payment amount is $1,500 for the first year.
  • The annual maximum annuity payment adjustment is 5%.
View Full Size Graph

ILAPA Performance Tracking

Average Declared Rate for Years Shown at Month Anniversary

Performance data quoted represents past performance, which does not guarantee future results. Current performance may be lower or higher than the performance quoted.

View Full Size Chart

Videos About ILAPA


The potential for payment increases of the Index-Linked Annuity Payment Adjustment rider is explained in this client video. It emphasizes how the increases can help offset the effects of inflation.


For Use with Clients

Related Content
  • Weathering a Turbulent Market Injured parties are facing more uncertainty and "what-ifs" than usual when considering what to do with their settlements—especially amid market ups and downs, global events and the continuation of COVID-19.

For more information, contact your Structured Settlement Consultant. 
Or, call us toll-free at (877) 784-0622.


1The 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. 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 products are not sponsored, endorsed, sold, or promoted by SPDJI, Dow Jones, S&P, their respective affiliates, and none of such parties make 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 index is not available for direct investment, and index performance does not include reinvestment of dividends. 

Pacific Life, its affiliates, its distributors, and respective representatives do not provide tax, accounting, or legal advice. Any taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor or attorney.

Pacific Life & Annuity Company will issue annuity policies if ANY of the following occur inside the state of New York: solicitation, sales, negotiation of settlement, court/legal action, or claimant/payee residence.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company (Newport Beach, CA) in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.


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