Introduction to variable annuity products offered through Schwab 

Introduction to variable annuity products offered through Schwab 

Schwab offers a choice of two highly competitive* variable annuities, along with personalized guidance designed for clients of investment advisors:

  • Schwab Genesis Advisory Variable Annuity™ (through Protective Life)
  • Pacific Advisory Variable Annuity (through Pacific Life)

A variable annuity is a long-term investment for retirement that offers tax-deferred growth potential and a variety of investment options. Variable annuities offer a wide range of features including a guaranteed death benefit and income for life.

 Schwab Genesis Advisory Variable Annuity™
(from Protective Life)
Pacific Advisory Variable Annuity
(from Pacific Life)
M&E&A Cost0.25%0.30%
Platform Fee0.00%0.15%
Surrender feesNoneNone
Investment options
  • More than 100
  • Cost range: 0.03%-1.44%
  • More than 100
  • Cost range: 0.03%-1.00%
Optional guaranteed lifetime withdrawal benefit (GLWB)
  • Annual benefit base step-ups due to positive market performance (highest anniversary value).
  • Annual Withdrawal Rate at age 65: See the applicable product brochure and fact sheet under Tools and resources.
  • Advisory fees are not permitted to be taken directly from the contract if the optional GLWB has been elected
  • Cost: 1.10% for single and joint life§.
  • A 5% simple interest credit is added annually to the protected payment base for up to 10 years or until the first withdrawal.
  • Automatic resets can lock in market performance, if contract value on the anniversary date is higher than the protected payment base after the addition of the interest credit, if applicable. After a reset, annual credits are based on the new protected payment base for the remainder of the 10 years.
  • Annual Withdrawal Rate at age 65: See the applicable GLWB brochure and fact sheet under Tools and resources.
  • Advisory fee-friendly**: The maximum advisory fee is 1.50% of Contract Value if the optional GLWB is elected. Withdrawals from the contract to pay advisory fees will reduce the account value and standard death benefit amount.
  • Cost: 1.25% for single life and 1.35% for joint life††.
Standard death benefit
  • Return of account value: Beneficiaries receive the account value, less premium taxes
  • Return of account value: Beneficiaries receive the account value, less premium taxes
Optional death benefit
  • Return of Purchase Payments: Beneficiaries receive total purchase payments, adjusted proportionally for withdrawals (other than withdrawals for allowable Advisory Fees noted below), or account value, whichever is greater, less premium taxes.
  • Advisory fee-friendly**: The maximum advisory fee is 1.50% (1.00% if the optional death benefit is elected).‡‡
  • Cost: 0.20%§§
  • Return of Purchase Payments (Return of Investment, ROI): Beneficiaries receive total purchase payments, adjusted proportionally for withdrawals (other than withdrawals for allowable Advisory Fees noted below), or account value, whichever is greater, less premium taxes.
  • Advisory fee-friendly**: The maximum advisory fee is 1.50% if the optional living benefit is elected; requests to pay fees in excess of the 1.50% will not be accepted.‡‡
  • Cost: 0.15%§§
Minimum purchase amounts
  • Minimum initial purchase: $5,000 for both Qualified and Non-Qualified contracts
  • Subsequent: $100 ($50 if EFT)
  • Minimum initial purchase: $25,000 for both Qualified and Non-Qualified contracts
  • Subsequent: $50 (Qualified), $250 (Non-Qualified)
Maximum Issue ages
  • 85
  • 90
  • 85 if guaranteed lifetime withdrawal benefit (GLWB) or optional death benefit are elected.
Financial Strength—Standard & Poors***Protective Life Insurance Company: AA-Pacific Life Insurance Company : AA-

* Mortality, expense, and administration charges on the Schwab Genesis Advisory Variable Annuity are 0.25%, with an additional fee of 0.20% for the Return of Purchase Payments Death Benefit. Comparatively, according to an April 18, 2022, Morningstar survey of 2,344 non-group variable annuities, the industry average fee is 1.29%. This does not include fees associated with the guaranteed lifetime withdrawal benefit, or underlying investments.

† The optional guaranteed lifetime withdrawal benefit (GLWB) is subject to additional fees, terms, and conditions. The guaranteed income benefit does not guarantee the investment performance of the applicable Schwab Genesis Advisory Variable Annuity™ or the Pacific Advisory Variable Annuity investment options. Please note that the GLWB for both variable annuities is not a contract value and is not available for withdrawal like a cash value. The actual contract value and death benefit will decrease with each withdrawal, though withdrawals may continue to be taken for life, even if the contract value has decreased to zero. Withdrawals more than the guaranteed annual withdrawal amount or withdrawals prior to benefit election may significantly and permanently reduce the benefit base and may result in the cancellation of the GWLB rider and contract. The GLWB fee is paid for through the sale of units of the investment options, which reduces the annuity account value.

‡ Subject to change at any time. The applicable annual credit percentage and/or annual withdrawal rates are disclosed in the Rate Sheet Prospectus Supplement in effect at the time the contract is purchased.

§ The SecurePay LifeSM (GLWB) fee is an annualized amount, as a percentage of the Benefit Base, deducted monthly is paid for through the sale of units of the investment options, which reduces the annuity account value and may increase at any time up to a maximum of 2.00% (2.20%, if added after the issue under the RightTime benefit).

** The deduction of advisory fees may also impact other guaranteed benefits and may be subject to federal and state income taxes and a 10% federal tax penalty.

†† The Portfolio Income Protector (GLWB) fee is an annualized amount, as a percentage of the Protected Payment Base, deducted quarterly and is paid for through the sale of units of the investment options, which reduces the annuity account value. The rider charge is subject to change at any time, up to a maximum of 2.50% for single life and 2.75% for joint life; however, the rider annual charge percentage in effect on the Rider Effective Date is guaranteed not to change once the rider is issued. The applicable rider annual charge percentage is disclosed in the Rate Sheet Prospectus Supplement in effect at the time the contract is purchased.

‡‡ The advisory fee may only be used to pay for investment advice related to the Contract and not for other services. Withdrawals from the contract to pay advisory fees will reduce the account value which may in turn reduce the death benefit, perhaps significantly.

§§ Optional Return of Purchase Payments fee is an annualized percentage of the death benefit.

*** Ratings may change are not guarantees of the future financial strength and/or claims-paying ability of a company, and do not apply to the safety or performance of the underlying investment options. For more information and current financial strength ratings, visit Protective.com or Pacificlife.com, as applicable.

Can an advisor withdraw advisory fees directly from the annuity contract? 
It may be possible to assess your advisory fee from the annuity subject to certain conditions; however, it may be treated as a withdrawal and may be taxable. Most advisors on our platform assess their Annuity Management fees from their clients' Schwab brokerage accounts. For details, call Schwab Annuity Concierge Services at 888-667-2145.

How can advisors manage Pacific Advisory Variable Annuity and Schwab Genesis Advisory Variable Annuity?
For Schwab Genesis Advisory Variable Annuity™, advisors log in to Protective Life's website to view clients' accounts, perform subaccount exchanges, rebalance, print statements, and update future allocations.

For Pacific Advisory Variable Annuity, advisors log in to Pacific Life's website to view clients' accounts and perform subaccount exchanges, print statements, and update future allocations.

Call Schwab Annuity Concierge Services at 888-667-2145 for next steps to access the Protective and Pacific Life sites.

Introduction to annuities and what they provide 
Introduction to Schwab Annuity Concierge Service for Advisors
Introduction to Schwab Data Delivery®

Schwab Genesis Advisory Variable Annuity (from Protective Life): 
Schwab Genesis Advisory Variable Annuity Fact Sheet
Schwab Genesis Advisory Variable Annuity™ Fact Sheet (New York only)
Schwab Genesis Advisory Variable Annuity Brochure
Schwab Genesis Advisory Variable Annuity Brochure (New York only)
Schwab Genesis Advisory Variable Annuity Investment Options Brochure
Schwab Genesis Advisory Variable Annuity Investment Options Performance
Schwab Genesis Advisory Variable Annuity Investment Options Fact Sheets
Schwab Genesis Advisory Variable AnnuityProspectus
Schwab Genesis Advisory Variable Annuity NY Prospectus
Protective RIA webpage

Pacific Advisory Variable Annuity (from Pacific Life and not available in New York): 
Pacific Advisory Variable Annuity Overview
Pacific Advisory Variable Annuity Brochure
Pacific Advisory Variable Annuity Investment Guide
Pacific Life Portfolio Income Protector Fact Sheet
Pacific Life Portfolio Income Protector Brochure
Pacific Advisory Variable Annuity Investment Options performance and fact sheets
Pacific Advisory Variable Annuity Prospectus
Pacific Life RIA webpage

Pacific Odyssey Variable Annuity (from Pacific Life and only available in New York): 
Pacific Odyssey Variable Annuity Fact Sheet
Pacific Odyssey Variable Annuity Investment Guide
Pacific Life Future Income Generator Brochure
Pacific Life Death Benefit Brochure
Pacific Odyssey Variable Annuity Investment Options performance and fact sheets
Pacific Odyssey Variable Annuity New York Prospectus
Pacific Life RIA webpage

To learn more about variable annuities offered through Schwab, contact a licensed annuity specialist with Schwab Annuity Concierge Services for Advisors at 888-667-2145 (option 2) between 7 a.m.–4 p.m. PT, Monday–Friday or email annuityconcierge@schwab.com.

Brokerage and insurance products: Are not deposits • Are not FDIC-insured • Are not insured by any federal government agency Are not guaranteed by the bank or any affiliate of the bank • May lose value

Variable annuities are sold by prospectus only. You can request a prospectus by calling 888-667-2145 (option 2). Before purchasing a variable annuity, you should carefully read the prospectus and consider the annuity's investment objectives and all risks, charges, and expenses associated with the annuity and its investment options.

Guarantees are subject to the terms and conditions of the contract and the financial strength and claims-paying ability of the issuing insurance company, not Schwab, and do not apply to the separate account or the underlying portfolios available with the contract. Schwab does not provide any insurance guarantees.

Variable annuities, including optional benefits, are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Any withdrawals prior to 59½ may be subject to income tax and a 10% federal tax penalty. Variable annuities are subject to a number of fees, including mortality and risk expense charges, administrative fees, premium taxes, investment management fees, and charges for additional optional features. Although there are no surrender charges on the variable annuities offered by Schwab, such charges do apply in the early years of many contracts.

Because a variable annuity's value will fluctuate depending on the performance of the underlying portfolios, an investor's units, when redeemed, may be more or less than the original amount invested.

Withdrawals will reduce the death benefit amount in direct proportion to the percentage by which the contract value was reduced. This can increase or decrease the amount deducted from the death benefit.

When transferring an annuity, consider surrender charges that may apply upon terminating an existing annuity contract, loss of guaranteed benefits, and differences in features, costs, services, and company strength, as well as other factors that could reduce or eliminate the benefit of an exchange.

Annuities may be subject to insurance company limitations, including limits on purchase payment amounts that will be accepted, as referenced in the prospectus. Some annuities can be purchased as an individual retirement account and are therefore subject to IRS limitations.

The decision to purchase an annuity within a qualified plan or IRA should not be based on the annuity’s tax-deferred accrual feature, as this is already provided by the qualified plan or IRA itself.

When your clients invest in an annuity, they do not invest directly in the annuity portfolios. Your clients invest in subaccounts of the life insurance company that, in turn, invest in the portfolios they've selected. Their account is then credited with variable accumulation units in that subaccount. The fees and charges associated with the subaccounts and the terms and conditions of the investment are detailed in the prospectus for the annuity. Your clients should read the prospectus carefully before investing.

Fixed interest choices offer a fixed rate of return if held to maturity. If surrendered early, the original fixed account value may increase or decrease depending upon whether any fees or penalties apply.

Protective and Protective Life refer to Protective Life Insurance Company (PLICO) and its affiliates, including Protective Life and Annuity Insurance Company (PLAIC). Protective Life does not offer or provide investment, fiduciary, financial, legal or tax advice or act in a fiduciary capacity for any client. Please consult with your investment advisory attorney or tax advisory as needed. Variable annuities are long-term investments intended for retirement planning and involve market risk and the possible loss of principal. Any withdrawals prior to 59½ may be subject to income tax and a 10% federal tax penalty. Investments in variable annuities are subject to fees and charges from the insurance company and the investment managers.

Protective Life variable annuities are issued by PLICO in all states except New York where they are issued by PLAIC. Securities offered by Investment Distributors, Inc. (IDI) the principal underwriter for registered products issued by PLICO and PLAIC, its affiliates. PLICO is located in Nashville, TN; PLAIC and IDI are located in Birmingham, Alabama. Each company is solely responsible for the financial obligations accruing under the products it issues. Product guarantees are backed by the financial strength and claims-paying ability of the issuing company.

Schwab Genesis Advisory is a flexible premium deferred variable and fixed annuity contract issued under policy form series VDA-P-2006 (PLICO) and VDA-A-2006-500 (PLAIC). SecurePay Life benefits provided by rider form number VDA-P-6057 (PLICO) and VDA-A-6059 (PLAIC). Policy form numbers, product availability and product features may vary by state. (WEB.2277634.03.21)

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 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. Insurance product and guarantees, including optional benefits and any fixed subaccount crediting rates or annuity payout rates, are backed by the financial strength and claims-paying ability of the issuing insurance company and do not protect the value of the variable investment options.

Pacific Life variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company (Newport Beach, CA), and an affiliate of Pacific Life & Annuity Company, and are available through licensed third parties.

Pacific Advisory Variable Annuity Contract Form Series: ICC20:10-1040 (state variations may apply). Rider Series: ICC20:20-1040, ICC21:20-1050, ICC21:20-1051 (state variations may apply).

Pacific Odyssey Variable Annuity Contract Form Series: 10-17800, 10-178OR (state variations may apply). Rider Series: ICC19:20-1427, ICC19:20-1428 (state variations may apply).

Charles Schwab & Co., Inc. is the selling broker-dealer and insurance agency and is not affiliated with either Protective Life Insurance Company (PLICO) and its affiliates or Pacific Life and its affiliates. All individuals selling this product must be licensed insurance agents and registered representatives.

Charles Schwab & Co., Inc., a licensed insurance agency, distributes certain insurance and variable annuity contracts that are issued by insurance companies not affiliated with Schwab. Not all annuity contracts are available in every state.

(1123-3BCM)