Goldstein Scorecard: B (dated October 4, 2026). See how it is graded.
Pacific Life Pacific Choice Variable Annuity Review (Pacific Choice and Pacific Choice 2)
Written & reviewed by Hans Goldstein, Independent Licensed Insurance Producer · CA license 4273294 · NPN 20602398Facts verified against the Pacific Choice SEC prospectus and Pacific Life fact sheets on October 4, 2026 · Updated October 4, 2026
Pacific Choice is a Pacific Life variable annuity, not a fixed indexed annuity: your money goes into subaccounts and can lose value. Per the May 1, 2026 prospectus, the base contract charge is 1.20% a year, withdrawal charges run 5 years (7%, 7%, 6%, 5%, 3%), and fund expenses run 0.29% to 3.48%. Pacific Life currently shows Pacific Choice for New York and Pacific Choice 2 (0.85% plus 0.25% fees) in other states. AM Best rates Pacific Life A+ (Superior).
Correction (October 4, 2026): an earlier version of this page was titled “Pacific Life Pacific Choice Review (2026), A+ Carrier, Multi-Term Variants” and described a “Pacific Life Pacific Choice FIA” with 7- and 10-year terms, S&P 500 caps and participation rates. Pacific Life does not sell a fixed indexed annuity by that name: Pacific Choice is a variable annuity. This page now reviews the Pacific Choice variable annuity, from its May 1, 2026 SEC prospectus and Pacific Life’s fact sheets.
Hans Goldstein is a licensed insurance producer, not a securities representative, and does not sell variable annuities; read the prospectus.
Pacific Choice: contract facts
| Item | What the prospectus says |
|---|---|
| Product type | Individual flexible premium deferred variable annuity. You can lose money, including principal |
| Issuer | Pacific Life Insurance Company, through Separate Account A (Pacific Life & Annuity Company issues in New York) |
| Options | 5 Year, 3 Year and 0 Year withdrawal charge options are described; only the 5 Year Option is currently offered |
| Base contract charge | 1.20% a year (5 Year Option), mortality and expense risk charge plus administrative fee. 3 Year 1.50%, 0 Year 1.60% |
| Annual fee | $50, charged if net contract value is under $50,000 |
| Fund expenses | 0.29% to 3.48% of fund assets |
| Optional benefits | 0.20% to 1.95% a year for a single optional benefit (current charges), on the Protected Payment Base or variable account value |
| Minimum initial payment | $10,000 nonqualified; $2,000 qualified |
| Free withdrawal | Earnings plus 10% of remaining purchase payments each contract year |
| Transfers | Up to 25 per calendar year among variable investment options |
| Annual cost example | Per $100,000 at 5% growth: $1,355.15 lowest (5 Year Option, no riders), $7,676.28 highest (0 Year Option, most expensive riders and funds) |
| Payment year | 1 | 2 | 3 | 4 | 5 | 6+ |
|---|---|---|---|---|---|---|
| Charge | 7% | 7% | 6% | 5% | 3% | 0% |
Pacific Choice 2 and Pacific Choice (New York): fact sheet terms
| Item | Pacific Choice 2 (all states except New York) | Pacific Choice (New York) |
|---|---|---|
| Mortality and expense risk fee | 0.85%; 0.80% at $500,000 to $999,999; 0.75% above $1 million | 0.95% |
| Administrative fee | 0.25% | 0.25% |
| Annual contract fee | $50, waived at $50,000 or more | $50, waived at $50,000 or more |
| Minimum purchase payments | $10,000 initial nonqualified ($250 after); $2,000 qualified ($50 after) | Same |
| Maximum issue age | 85 | 85 |
| Withdrawal charge | 7/7/6/5/3%, then 0% | 7/7/6/5/3%, then 0% |
| Optional living benefits | 0.20% to 1.25% depending on benefit | See prospectus |
| Optional death benefits | Return of premium 0.10%; Stepped-Up 0.40% (age 75 or younger); Earnings Enhancement 0.25% | See prospectus |
Per the fact sheets, insurance guarantees, including optional benefits and fixed option rates, are backed by the financial strength and claims-paying ability of the issuing Pacific Life company and do not protect the value of the variable investment options. Pacific Life also lists Pacific Choice Income, a separate variable annuity built around a living benefit with a 7-year withdrawal charge period.
If you wanted a Pacific Life fixed indexed annuity
Pacific Life’s fixed indexed annuities are different products with caps, participation rates and no index losses credited (withdrawal charges can still reduce what you get back early). See the HG reviews of Pacific Index Foundation and Pacific Index Edge.
Get an independent read on Pacific Life Pacific Choice Variable before you sign.
Send your email and I'll send you what this product actually guarantees, what the surrender schedule really costs you, and the two or three carriers paying more for the same guarantee. If it's already a good fit, I'll tell you that.
Email only. Hans reads every one himself and replies within one business day. Hans Goldstein · NPN 20602398.
Rather talk it through? Or book 15 minutes on Hans’s calendar.
Goldstein Scorecard (dated October 4, 2026)
| Dimension | Grade | Basis (sourced fact) |
|---|---|---|
| Financial strength | A | AM Best A+ (Superior), outlook stable, affirmed December 11, 2025 (AM Best press release) |
| Rate or cap competitiveness | Not graded | A variable annuity has no declared rate or cap; returns depend on the funds you pick |
| Guaranteed floor | Incomplete | No floor on subaccount values; fixed option rates are not in the documents reviewed |
| Liquidity | B- | 5-year withdrawal charge per payment (7/7/6/5/3%), earnings plus 10% of payments free each year |
| Costs | B | 1.20% base (Pacific Choice) or 1.10% (Pacific Choice 2 fact sheet, lower above $500,000) plus 0.29% to 3.48% funds and any rider |
| Transparency | A- | Full prospectus on SEC EDGAR and public fact sheets with fees and schedule |
| Complexity (replaces the old Complexity Index) | B- | Many funds and optional living and death benefits; the base contract itself is simple |
| Overall | B | Strong issuer, published fees, shorter charge period than many variable annuities; market risk and stacked costs remain |
Pros and cons
- Pro: Pacific Life is rated A+ (Superior) by AM Best, outlook stable (December 11, 2025).
- Pro: 5-year withdrawal charge schedule, shorter than many deferred annuities, with earnings plus 10% of payments free each year.
- Pro: fees are published in public fact sheets; Pacific Choice 2 lowers the M&E fee at $500,000 and $1 million.
- Con: you can lose money in the subaccounts; there is no floor on fund values.
- Con: costs stack: base charge plus fund expenses up to 3.48% plus any rider (highest cost example $7,676.28 per $100,000).
- Con: each new purchase payment starts its own 5-year charge schedule.
Who it’s for, and when to look elsewhere
Fits: an investor with a long horizon who wants tax-deferred fund investing, maybe an optional living or death benefit, and accepts market risk. Also useful for current owners checking their contract terms.
Look elsewhere if: you want a known rate or no market loss. A MYGA locks a declared rate for the term. For comparison, A-rated-or-better insurers were paying about 5.80% to 6.00% on 5-year MYGAs and the best nationally available 5-year CDs about 4.35% to 4.50% APY on September 24, 2026 (AnnuityRateWatch carrier data; DepositAccounts). Current rates: MYGA rates. For index-linked interest with no index losses credited, look at a Pacific Life FIA above, and read fixed vs variable annuities.
Questions to ask your agent
- Which product am I being shown, Pacific Choice, Pacific Choice 2 or Pacific Choice Income, and which prospectus date applies?
- Is there a fixed option, what is it paying now, and what is its contractual minimum rate in writing?
- Show me the full surrender (withdrawal charge) schedule for each payment and the dollar cost if I need my money in year 2.
- What is my total annual cost: base charge, the actual expense of the funds you recommend, and any rider charge?
- How are you paid on this product? Commission comes from the insurer, is built into the contract pricing and is not deducted from premium; ask the percentage and whether a longer charge period pays more (how annuity commissions work).
From my desk
When someone sends me a variable annuity contract, I first add up the yearly drag: base charge, the real expense of the funds they own, and any rider. On Pacific Choice that is 1.20% plus 0.29% to 3.48% plus 0.20% to 1.95% if a benefit is added. Hypothetical: at 1.20% + 0.70% + 1.00%, the funds have to earn about 2.90% a year before the owner is ahead. Then I compare that with what a MYGA pays for the same term with no market risk.
The number buyers most often misread on this type of product is the living benefit’s Protected Payment Base. It is used to size withdrawals; it is not cash and not what you get if you surrender. I also check whether the contract is Pacific Choice or Pacific Choice 2, because the fee lines differ. I do not sell variable annuities, so my job here is a second opinion: what it costs, and whether a fixed product does the job cheaper. See annuity second opinion, or run the numbers in the surrender charge calculator, the annuity calculator and the income rider vs annuitization calculator.
Frequently asked questions
Is Pacific Choice a fixed indexed annuity?
No. Pacific Choice is an individual flexible premium deferred variable annuity issued by Pacific Life Insurance Company and registered with the SEC. Your money goes into subaccounts and can lose value. Pacific Life’s fixed indexed annuities are separate products, such as Pacific Index Foundation and Pacific Index Edge.
What is the difference between Pacific Choice and Pacific Choice 2?
As of October 4, 2026, Pacific Life’s variable annuity page shows Pacific Choice for New York and Pacific Choice 2 for the other states. Both fact sheets show the same 5-year withdrawal charge (7%, 7%, 6%, 5%, 3%). Pacific Choice 2 lists a 0.85% mortality and expense risk fee (lower at $500,000 and $1 million) plus a 0.25% administrative fee; the New York Pacific Choice sheet lists 0.95% plus 0.25%.
What are the Pacific Choice surrender charges?
Under the 5 Year Option, the only option currently offered per the May 1, 2026 prospectus, each purchase payment has a withdrawal charge of 7%, 7%, 6%, 5% and 3% in years 1 to 5, then 0%. Each year you can withdraw earnings plus 10% of remaining purchase payments without a charge.
What does Pacific Choice cost each year?
The prospectus lists a 1.20% base contract charge for the 5 Year Option, a $50 annual fee if net contract value is under $50,000, fund expenses of 0.29% to 3.48%, and optional benefits of 0.20% to 1.95% for a single benefit.
What is the minimum to open Pacific Choice?
$10,000 for a nonqualified contract and $2,000 for a qualified contract, per the prospectus and the fact sheets. The fact sheets list a maximum owner and annuitant issue age of 85.
Does Hans Goldstein sell Pacific Choice?
No. Hans Goldstein is a licensed insurance producer, not a securities representative, and does not sell variable annuities. He can compare what a variable annuity costs against fixed options such as MYGAs and FIAs.
Related reading: Pacific Index Foundation review · Pacific Life SPIA · Fixed vs variable annuity · Are annuities FDIC insured?
Hans is independently licensed and is not specifically appointed to discuss or sell Pacific Life Insurance Co products.
Sources (checked October 4, 2026)
- Pacific Life Insurance Company, Pacific Choice Variable Annuity statutory prospectus, Form N-4 Post-Effective Amendment 30, dated May 1, 2026, filed April 15, 2026 (SEC EDGAR)
- Pacific Life, Pacific Choice 2 Variable Annuity Fact Sheet, VAC2460-00 9/26
- Pacific Life, Pacific Choice Variable Annuity Fact Sheet in New York, VAC0007-NY-00 7/26
- Pacific Life, Variable annuities product page, checked October 4, 2026
- AM Best, AM Best Affirms Credit Ratings of Pacific LifeCorp and Its Subsidiaries, December 11, 2025; also listed on Pacific Life financials and insurance ratings
About Hans Goldstein: Independent retirement income specialist. CA Life License #4273294. NPN #20602398. Reviews 30+ carriers. Phone: 213-414-2808. Email: hans@hansgoldstein.com.
Get a second opinion before you sign
Talk to Hans Goldstein, a licensed independent insurance producer.
A fixed indexed annuity ties up your money for 7 to 15 years. Cap rates renew annually and can drop. Income riders have separate benefit bases that aren't cash. Have me review it before you commit retirement savings to a multi-year contract.
Send your details. Within one business day I'll send a written review of your quote and a side-by-side with two alternatives. We only get on a 15-minute call if you want one.
Rather talk it through? Or book 15 minutes on Hans’s calendar, or call 213-414-2808.
Hans Goldstein · 213-414-2808 · NPN 20602398, independent licensed insurance producer appointed with multiple A-rated carriers
Email only. Hans replies within one business day, and only calls if you ask him to. Privacy Policy.
Disclosure
This review is based on the carrier's public product materials and rates as of the date shown above. Annuity rates, caps, participation rates, payout factors, crediting methods, and long-term care benefit structures change often, sometimes monthly. Confirm current figures in the latest carrier disclosure and the contract before you buy. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (CA license 4273294, NPN 20602398) appointed with several A-rated carriers. His appointment with the carrier reviewed here may vary, and this review is not an endorsement. No carrier paid for this review. Always read the actual contract and consult a licensed advisor before purchasing any annuity or long-term care insurance product. Past index performance does not predict future credited interest. Annuities and hybrid life+LTC policies are long-term contracts with surrender charges; they are not suitable for funds you may need before the end of the surrender period. AM Best ratings and tax treatment are subject to change. Tax discussion of IRC §7702B, §1035, and the Pension Protection Act of 2006 reflects law as of 2026 and is subject to change.