Flex Protector II-NY. A scheduled premium universal Life Insurance product. Client Brochure FXPRO2-NY-1B

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1 FXPRO2-NY-1B Flex Protector II-NY A scheduled premium universal Life Insurance product Client Brochure

2 As a multi-line insurance company with a demonstrated commitment to providing financial protection and outstanding service, Pacific Life & Annuity helps individuals and businesses reach their financial goals. With Flex Protector II-NY (Policy Form #P08FP2), our scheduled premium universal life insurance product, we continue that tradition with a product that combines death benefit protection with long-term cost stability and consistent cash value growth. Life insurance is subject to underwriting and approval of the application. If approved, a policy face amount, premium limits, and policy performance, will be impacted by the deduction of monthly policy charges. Investment and Insurance Products: Not a Deposit Not Insured by any Federal Government Agency Not FDIC Insured No Bank Guarantee May Lose Value 1

3 Stability. Consistency. Confidence. As a whole life insurance policy offering fixed premiums and a guaranteed minimum interest crediting rate, Flex Protector II-NY has been designed with stability and consistency in mind. Long-term Protection Financial protection for you or your key business interests Long-term Consistency Premiums that are set at policy issue and never change Long-term Performance Competitive guaranteed and current interest crediting rates that ensure consistent growth 1 1 Non-guaranteed/current elements are not guaranteed by definition. As such, Pacific Life & Annuity Company reserves the right to change or modify any of these elements. This right to change these elements is not limited to a specific time or reason. 2

4 Flex Protector II-NY Offering a guaranteed interest crediting rate, Flex Protector II delivers long-term stability and consistent policy performance. These characteristics make it a strong contender for companies that wish to provide insurance protection and cash value to their employees through a qualified plan or to protect the company s financial well-being as part of a key person insurance strategy. These same attributes may make it a good choice for individuals who want a simple life insurance policy with lifetime death benefit protection, set premiums, and consistent cash value growth. 3

5 Because of its focus on stability and potential for long-term performance, Flex Protector II-NY can be an integral part of your life insurance and financial strategies. PREMIUMS Premiums are set at policy issue and are based on the face 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 or the policyowner may choose from the following non-forfeiture options: Extended Insurance (default option) Reduced Paid-Up Automatic Policy Loan A premium load of 8% (guaranteed maximum) is charged on each premium payment. The current premium load is as follows: Premium Load: A charge deducted from each premium payment. Current: 6.45%. If policy is owned in a qualified plan: 4.95%. Universal Life Insurance generally requires additional premium payments after the initial premium. If either no premiums are paid, or subsequent premiums are insufficient to continue coverage, it is possible that coverage will expire. 4

6 Flex Protector II-NY Features 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 Band: Total Annualized premium less than $15,000; High Band: Total Annualized premium of $15,000 and above MONTHLY CHARGES Monthly deductions are taken from the policy s accumulated value. Cost of Insurance: The amount of the charge is equal to a current cost of insurance (COI) rate multiplied by the net amount at risk under a policy 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 Charge is deducted only in policy years 1-5, then reduces to zero in years 6+. Guaranteed Coverage Charge is deducted for the life of policy contract. You can add value to a Flex Protector II-NY policy with ECV Coverage. ECV COVERAGE Provides cash value and death benefits (just like Basic Coverage) but with higher cash surrender value in the earlier policy years. 2 Can be used alone or combined with Basic Coverage in any proportion to help meet life insurance and qualified plan objectives (depending on what your plan permits). 3 Offers the same death benefit protection, fixed account guarantees and underwriting risk classes as Basic Coverage. With two coverage types to choose from, Flex Protector II-NY scheduled premium life insurance offers flexibility to fit your qualified plan s death benefit needs. 2 Over the longer-term, a policy with Basic Coverage would typically provide higher long-term cash surrender values than a policy with just ECV Coverage. 3 The plan, together with its legal and pension advisors and plan administrator choose the amount of death benefit and the amount and frequency of planned premium payments. Because Pacific Life & Annuity is neither the plan s legal advisor nor plan administrator, it does not advise on the appropriate amounts of life insurance coverage or premium amounts for any particular plan. 5

7 POLICY RIDERS 4 The following riders are automatically added (if they are applicable) to satisfy the qualified plan requirements. IRC 412(e)(3) Life Insurance Rider (Form #R0812L) 5 Qualified Retirement Plan Rider (Form #R08QUA) POLICY LOANS 6 Although Internal Revenue Service (IRS) regulations prohibit policy loans if the policy is within certain kinds of defined benefit plans, Flex Protector II-NY offers policy loans for policies that are not or no longer within such plans. Loan interest rate charged: 3.25% in all policy years (both current and guaranteed) Loan interest rate credited: 3.25% in all years on a current basis and 3.00% in all years on a guaranteed basis. WITHDRAWALS 6 Generally, withdrawals are not allowed while the policy is in premium paying status, unless the policy is owned inside of certain qualified plans. 5 Otherwise, once a policy is in Extended Insurance status, withdrawals from the policy cash surrender value are allowed once per year for a fee of $25 (currently waived). The minimum withdrawal amount is $500. SURRENDER CHARGE Flex Protector II-NY has a 6-year surrender charge period. The charges are level in years 1 and 2 and decrease monthly in policy years 3 thru 6. 4 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. 5 Only available for policies owned by a 412(e)(3) defined benefit plan. 6 Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. Policy loan is not allowed for policies owned by 412(e)(3) plans. 6

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, 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. The adoption of a qualified plan requires the services of a qualified plan administrator that administers the type of plan being considered. Pacific Life & Annuity 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. Newport Beach, CA (888) 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 products and their guarantees, including optional benefits and any crediting rates, are backed by the financial strength and claimspaying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as these guarantees are not backed by the broker-dealer, insurance agency, 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 life insurance company. Pacific Life & Annuity Company s individual life insurance products are marketed exclusively through independent third-party life insurance producers, which may include bank affiliated entities. Some of these selling 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. FXPRO2-NY-1B /16