Pacific Life Product Overview: Pacific Select Survivor VUL

On Monday, June 16 th, Pacific Life released the Pacific Select Survivorship VUL to replace their Select Estate Preserver VI. The new pricing takes a slight downgrade in performance from the old product; distribution amounts for income solves did not change much, and premiums for endowment had small increases for almost every scenario. This causes Pacific Life to lose some competitiveness in the SVUL market, but they still are a major player.

For death benefit solves, the old product was one of the best in the market particularly when illustrated at a 6% gross interest rate. For these scenarios, premiums regularly ranked toward the top of the market, with many cells having the cheapest premiums. With the release of the Select SVUL, premiums increased by about 4%-5% on average across the board. This pushes the new product toward the middle of the pack for 8% solves, while the 6% solves still retain a competitive stance for ages 60 and below.

For distribution solves, the old product was pretty mediocre when illustrated at an 8% gross interest rate and quite competitive when illustrated at a 6% gross interest rate. This new release does not change much of that positioning though distribution amounts are about 2% worse for the 6% solves. LifeTrends adjusted some of the assumed blending to better reflect competitive targets and these changes helped the Select SVUL retain roughly the same competitiveness as the Select Estate Preserver VI.

Overall in a small SVUL market, the Pacific Select SVUL should remain a top player.

Targets dropped on average 4% or 5% but are adjusted by the blend to fall around the middle of the market.

Rates were posted to the LifeTrends website on Wednesday, June 18th.