MORE INCOME NOW AND OVER TIME

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1 MORE INCOME NOW AND OVER TIME with Enhanced Income Select Optional Benefit with Pacific Life Variable Annuities VAP

2 ENHANCED INCOME SELECT A Pacific Life variable annuity with Enhanced Income Select, an optional guaranteed lifetime withdrawal benefit, can offer: o An enhanced amount of income as high as 8.0%, as long as the contract value is greater than zero. o Opportunities to increase income by capturing market gains through annual resets. o Flexibility to choose from a wide variety of investment options from well-known and respected investment managers, without requiring allocations to managed-volatility funds or asset-transfer programs. Maximum Annual Withdrawal Amount Age at First Withdrawal (or First Withdrawal After a Reset) Enhanced Income Percentage 1 (Contract Has Value) Guaranteed Lifetime Income Percentage 1 (Contract Value = 0) Single Life Joint Life Single Life or Joint Life 59½ % 5.10% 3.00% % 7.10% 3.00% % 7.50% 3.00% 1 As a percentage of the protected payment base. Optional benefit charges are subject to change. The maximum charge will never exceed 2.25% for Single Life and 2.75% for Joint Life. Variable annuities also include insurance-related charges as well as withdrawal and administrative fees. The maximum Enhanced Income Percentage that can be withdrawn annually is based on the age when the first withdrawal is taken after age 59½ or after a reset takes place. If an early or excess withdrawal causes the contract value to go to zero, the optional benefit will end and your client will not receive the guaranteed lifetime income percentage. Withdrawals taken prior to age 59½ may be subject to an additional 10% federal tax. Withdrawal charges also may apply. Let s now look at a comparison between Enhanced Income Select and a 5%-for-life withdrawal benefit.

3 DO YOU HAVE CLIENTS AGE 65 OR OLDER LOOKING TO ENHANCE RETIREMENT INCOME? Some clients want higher income earlier in retirement. A long-term investment such as a variable annuity with an optional living benefit can help meet this need. Variable annuities help grow, protect, and manage retirement savings in a tax-advantaged way. With an optional benefit, variable annuities also can provide the security of never outliving one s income, even if the contract value is reduced to zero. After clients determine their income needs, it is important to compare the income options available to them. o Which optional living benefit offers the highest income now? o Which optional living benefit provides more total income over time? Total $200,000 Enhanced Income Select versus 5% for Life Age 97 $150,000 When compared to a 5%-for-Life guaranteed minimum withdrawal benefit (GMWB), a Pacific Life variable annuity with the Enhanced Income Select optional benefit may provide clients with both: o Higher income now. o Higher total income over their lifetimes. $100,000 $50,000 Enhanced Income Select $36,400 more income 5% for Life $0 Year 1 Age Guarantees, including optional benefits, are subject to the issuing company s claims-paying ability and financial strength and do not protect the value of the variable investment options, which are subject to market risk. 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. No bank guarantee Not a deposit May lose value Not FDIC/NCUA insured Not insured by any federal government agency

4 Meet Robert At age 65, Robert invests $100,000 into a Pacific Life variable annuity contract and elects the Enhanced Income Select (Single Life) optional living benefit. In year 1, the income percentage of Enhanced Income Select is 7.6% compared to that of the traditional 5%-for-Life GMWB. Even with a 0% net annual return, at the end of 14 years when Robert is age 79, the 7.6% withdrawal rate generated $36,400 more income ($106,400 $70,000) before the contract value is depleted. Given the initial enhanced amount of income, it will take an additional 18 years, when Robert is age 97, before the traditional 5%-for-Life GMWB catches up. The average life expectancy for a 65-year-old male is 84.3 years old. Source: Social Security Administration. Life Expectancy Calculator. Let s take a closer look at this example in the table below. Income from 5% for Life Income from Enhanced Income Select Contract Year Age Income Percentage Annual Income Amount Total Income Percentage Annual Income Amount Total % $5,000 $5, % $7,600 $7, % $5,000 $25, % $7,600 $38, % $5,000 $50, % $7,600 $76, % $5,000 $70, % $7,600 $106,400 This is the last year Enhanced Income Select offers a 7.6% withdrawal because the account value now equals zero. Starting in year 15, the income percentage is adjusted to 3.0% for life % $5,000 $100, % $3,000 $124, % $5,000 $125, % $3,000 $134, % $5,000 $150, % $3,000 $154, % $5,000 $160, % $3,000 $160,400 It takes an additional 18 years for the 5%-for-Life GMWB to catch up. Hypothetical example. For illustrative purposes only. The mathematical example is intended to show the income available through Enhanced Income Select compared to a hypothetical 5%-for-Life GMWB. Assumes a 0% net return after deduction of contract, investment option, and optional benefit fees. Your client s results may vary. Interested in learning more? Contact your Pacific Life consultative wholesaler at (800) for more information about Pacific Life variable annuities with Enhanced Income Select.

5 Please refer to the appropriate variable annuity fact sheet and Enhanced Income Select brochure for more information. 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. Pacific Life is a product provider. It is not a fiduciary and therefore does not give advice or make recommendations regarding insurance or investment products. Investors should carefully consider a variable annuity s risks, charges, limitations, and expenses, as well as the risks, charges, expenses, and investment goals of the underlying investment options. This and other information about Pacific Life variable annuities are provided in the product and the underlying fund prospectuses. These prospectuses should be read carefully by clients before investing. If an early withdrawal or non-compliant withdrawal reduces the contract value to zero, the living benefit rider will terminate, resulting in no lifetime withdrawal. Annuity withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. For nonqualified contracts, an additional 3.8% federal tax may apply on net investment income. If withdrawals and other distributions are taken prior to age 59½, an additional 10% federal tax may apply. A withdrawal charge also may apply. Withdrawals will reduce the contract value and the value of the death benefits, and also may reduce the value of any optional benefits. The value of the variable investment options will fluctuate so that shares, when redeemed, may be worth more or less than the original cost. Only one optional guaranteed minimum withdrawal benefit (GMWB) can be purchased with a variable annuity. Any credit enhancement offered by the variable annuity will not apply to the optional benefits unless a step-up occurs. Not all products or riders are available at all broker/dealer firms. Enhanced Income Select is named Guaranteed Withdrawal Benefit XV Rider Single Life and Guaranteed Withdrawal Benefit XV Rider Joint Life in the contract rider. 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 rider 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. They are not backed by the broker/dealer from which this annuity is purchased, by the insurance agency from which this annuity is purchased, or any affiliates of those entities, and none makes any representations or guarantees regarding the claims-paying ability of the issuing insurance company. Variable insurance products are distributed by Pacific Select Distributors, LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company and an affiliate of Pacific Life & Annuity Company (Newport Beach, CA), and are available through licensed third parties. Contract Form Series: ICC12: , ICC12: , , OR, ICC11: , OR (state variations may apply) Rider Series: ICC16: , ICC16: (state variations may apply) VAP Mailing addresses: Pacific Life Insurance Company P.O. Box 2378 Omaha, NE (800) In New York, Pacific Life & Annuity Company P.O. Box 2829 Omaha, NE (800)