Index-Linked Annuity Payment Adjustment Rider (ILAPA)

ILAPA is an optional rider that offers the potential for increased payment amounts for a structured settlement annuity 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 never decrease.

How ILAPA Works

An Opportunity for Your Clients' Payments to Grow

Payments can increase by up to 5%, but they will never decrease.

The ILAPA 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 ILAPA rider may result in a varying benefit amount based on the annuity type and period selected.

 

 

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

 

If the S&P 500® index decreases or nets zero return, there is no reduction to the payment amount.

Hypothetical ILAPA Illustration

Provides Growth and Protection

You can earn additional payment amounts based on any positive movement of the S&P 500® index.

End of Year 1 2 3 4
Hypothetical S&P© 500 Index Return 3% -4% 8% 5%
Adjustment to Payment Amount
(5% cap)		 3% 0% 5% 5%
Resulting Monthly Annuity Payment Amount $1,545 $1,545 $1,622.25 $1,703.36

   Assumptions:

  • 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%.

ILAPA Performance Tracking

Average Declared Rate for Years Shown at Month Anniversary

Average Date 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
3.64% 15-Jan 5.00% 0.00%
 5.00% 5.00% 0.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00%
3.78% 15-Feb 5.00% 0.00% 5.00% 5.00% 1.63% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00%
3.43% 15-Mar 5.00% 0.00% 5.00% 5.00% 2.74% 0.00% 5.00% 5.00% 0.00% 5.00% 5.00%
5.00% 15-Apr 5.00% 0.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00% 0.00% 5.00% 5.00%
3.48% 15-May 5.00% 0.00% 5.00% 5.00% 5.00% 0.45% 5.00% 0.00% 2.79% 5.00% 5.00%
3.99% 15-Jun 5.00% 0.00% 5.00% 5.00% 3.86% 5.00% 5.00% 0.00% 5.00% 5.00% 5.00%
4.33% 15-Jul 5.00% 2.58% 5.00% 5.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00% 5.00%
3.90% 15-Aug 5.00% 4.71% 5.00% 5.00% 1.04% 5.00% 5.00% 0.00% 3.27% 5.00%  
3.85% 15-Sep 0.00% 5.00% 5.00% 5.00% 3.53% 5.00% 5.00% 0.00% 5.00% 5.00%  
4.50% 15-Oct 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00%  
4.00% 15-Nov 0.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00%  
3.77% 15-Dec 2.70% 5.00% 5.00% 0.00% 5.00% 5.00% 5.00% 0.00% 5.00% 5.00%  
 
Download the Chart

For Use with Clients

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For more information, contact your Structured Settlement Consultant. 

Pacific Life Insurance Company

25-317

SSQ4624-00 7/25 E728

Contract Form Series: ICC11:10-1213 Rider Form Series: ICC13:20-1280 State variations to contract form and series may apply.

Pacific Life is a member of the National Structured Settlements Trade Association.

 

Pacific Life, its affiliates, their 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.

 

Insurance products and their guarantees, including optional benefits, annuity payout rates, and any crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the insurance company with regard to such guarantees because these guarantees are not backed by the independent broker/dealers, insurance agencies, or their affiliates from which products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the issuing company.

 

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.

 

The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.

 

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