Pacific Life Insurance Company. Flex Protector II. An interest sensitive whole life insurance product Client Brochure FXPRO2-1A

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1 Pacific Life Insurance Company Flex Protector II An interest sensitive whole life insurance product Client Brochure FXPRO2-1A

2 At Pacific Life, we pride ourselves in providing a steady hand to families and businesses that use our life insurance products as part of their protection and financial plans for over 140 years. With Flex Protector II (Policy Form #P08FP2), we are continuing that tradition by creating a product that can offer you a measure of stability in these ever-changing times. Investment and Insurance Products: Not a Deposit Not FDIC Insured Not Insured by any Federal Government Agency No Bank Guarantee May Lose Value 1

3 Long-Term Planning with Flex Protector II one. Financial protection for you and your key business interests. two. Consistency and dependability through pre-set premiums and competitive guaranteed and current interest crediting rates. three. Effective when used either as part of certain qualified plans or in other financial strategies. 2

4 Flex Protector II DesignED for your long-term needs When planning for the long-term, stability and consistency are two attributes that can be not only comforting, but integral to the process. As a whole life insurance policy offering fixed premiums and a guaranteed minimum interest crediting rate, Flex Protector II has been designed with these two characteristics in mind. Whether used as part of certain qualified plans, in a key person insurance strategy, or in a variety of other financial strategies, a Flex Protector II policy can provide the death benefit and cash surrender value that are such an important part of the financial planning process. 3

5 Flex Protector II is available to insureds age at policy issue and credits a guaranteed interest rate of 3.00% on the policy s accumulated value, although the current credited interest rate may be higher. premiums Premiums are set at policy issue and are based on the death benefit amount as well as the health, issue age and gender of the insured. Premiums can be paid in any of the following modes: Annually Semi-annually Quarterly Monthly Premium payments must be paid as scheduled or the policy will enter the 31-day grace period. If at the end of the grace period, the full premium payment has not been paid, the policy will lapse and the policyowner may choose from the following non-forfeiture options: Extended Insurance (default option) Reduced Paid-Up Automatic Policy Loan Deducted from each premium payment is a premium load, which is 8.0% on a guaranteed basis. 4

6 With its inherent stability and potential for long-term performance, Flex Protector II can be an integral part of your life insurance and financial strategies. Death Benefit The minimum death benefit available is: Standard Smoker and Standard NonSmoker: $50,000 All Other Risk Classes: $100,000 Banding For the purpose of calculating policy charges, policies are banded into the following categories: Low: total annualized premium less than $15,000 High: total annualized premium of $15,000 or more monthly charges Monthly deductions are taken from the policy s accumulated value. Cost of Insurance (COI): The amount of the charge is equal to a current cost of insurance rate multiplied by the net amount at risk at the beginning of each policy month. The maximum rate will not exceed the guaranteed COI rates listed in the policy. Coverage Charges: These charges are calculated at issue and are based on the initial amount of coverage. Current Coverage Charges are charged only in policy years 1-5, then reduce to zero. Guaranteed Coverage Charges are the same as Current Coverage Charges in policy years 1-5 and level in years 6+. policy riders * To help you meet your life insurance needs and financial objectives, you can add other benefits (also called riders) to your Flex Protector II policy. Each rider will provide a specific benefit. The following riders are subject to state availability and certain limitations: Accelerated Living Benefit Rider 1 (Form #R92-ABR) IRC 412(e)(3) Life Insurance Rider 2 (Form #R0812A) Qualified Retirement Plan Rider (Form #R08QUA) Maturity Extension Rider (Form #R06-MER) policy loans 3 Although IRS regulations prohibit policy loans if the policy is within certain kinds of defined benefit plans, Flex Protector II offers policy loans that are no longer owned by such plans. Loan interest rate charged: 3.25% in all policy years Loan interest rate credited: 3.00% guaranteed in all policy years, 3.25% on a current basis in policy years 6+. withdrawals 3 Withdrawals from the policy cash surrender value are allowed once per year for a fee of $25. This fee is currently waived. surrender charge Flex Protector II has a 6-year surrender charge period. The charges are level in years 1 and 2 and decrease monthly in years 3 to 6. * Riders will likely incur additional charges and are subject to availability, restrictions and limitations. When considering a rider, request a policy illustration from your life insurance producer to see the rider s impact on your policy s values. 1 The benefits of the Accelerated Living Benefit Rider are subject to state requirements, and may impact Medicaid benefits. Please consult your legal advisor for more information. 2 Only available for policies owned by a 412(e)(3) defined benefit plan. 3 Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. 5

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8 This material is not intended to be used, nor can it be used by any taxpayer, for the purpose of avoiding U.S. federal, state or local tax penalties. This material is written to support the promotion or marketing of the transaction(s) or matter(s) addressed by this material. Pacific Life Insurance Company, its distributors and their 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. The adoption of a qualified plan requires the services of a qualified plan administrator that administers the type of plan being considered. Pacific Life Insurance Company does not provide qualified plan administrative services. The termination of a plan for any reason other than unforeseen business necessity during the first few years of its existence is considered an indication that the plan from its inception was not a bona fide plan. Consult your plan administrator before considering changing or terminating your plan. Pacific Life Insurance Company Newport Beach, CA (800) Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features may vary by state. Product and rider guarantees are backed by the financial strength and claims-paying ability of Pacific Life Insurance Company. Non-guaranteed elements are not guaranteed by definition. As such, Pacific Life Insurance Company reserves the right to change or modify any non-guaranteed element. This right to change non-guaranteed elements is not limited to a specific time or reason. Pacific Life Insurance Company s individual life insurance products are marketed exclusively through independent third-party life insurance producers, which may include bank affiliated entities. Some selling entities, which may include bank affiliated entities, may limit availability of some optional riders based on their client s age and other factors. Your life insurance producer can help you determine which optional riders are available and appropriate for you. Life Insurance Producer s Name Life Insurance Producer s State Insurance License Number (or affix your business card) Policy Form #P08FP2 FXPRO2-1A /12