PACIFIC INDEXED ACCUMULATOR 6

Transcription

1 PACIFIC INDEXED ACCUMULATOR 6 Flexible Premium Indexed Universal Life Insurance Pacific Life Insurance Company Policy Form #P15IUL and S18PIA6 or ICC15 P15IUL and ICC18 S18PIA6, based on state of policy issue. Indexed Universal Life Insurance does not directly participate in any stock or equity investments. Death Benefit Protection With High Early Cash Surrender Value Potential Client Profile Affluent individuals and businesses with a death benefit protection need. Want high cash surrender values in the policy s early years and long-term cash value growth potential. May be interested in premium financing or corporate-sponsored plans. Key Features One fixed account and 7 indexed accounts for a range of interest crediting potential. Enhanced Performance Factor Rider to increase the indexed accounts interest crediting potential. SVER-3 Term Insurance Rider to increase the policy s cash surrender value potential in the first 7 to 10 policy years. Optional riders to guarantee no-lapse protection up to lifetime, add long-term care or chronic illness protection, and more! Flexible Death Benefit Protection See additional information on pages 2-5 Available Risk Classes (Male, Female, Unisex) Issue Ages Super Preferred Nonsmoker Preferred Plus Nonsmoker Preferred Nonsmoker Preferred Smoker Standard Nonsmoker Standard Smoker Juvenile 0 17 Guaranteed Issue (GI) Simplified Issue (SI) Minimum Initial Face Amount $50,000 ($10,000 Basic Coverage) Face Amount Changes Death Benefit Options: A (Level), B (Increasing), and C (Return of Premium). Unscheduled Increases: Any existing coverage type at any time ($25,000 minimum per increase), subject to underwriting approval. Scheduled Increases: Increases of term coverage are underwritten at policy issue through the Scheduled Annual Renewable Term Rider. Decreases: One per year, after first policy year. Minimum of $1,000 Basic Coverage must remain after all decreases have taken place. Decreases in coverage may not result in a decrease in policy charges. UP TO $3 MILLION COVERAGE WITH NO MEDICAL EXAMS 1 Highly compensated professionals earning at least $200,000 annually in jobs with no occupational hazards can apply for up to $3 million death benefit with no medical exams, needles, or bodily fluids. Underwriting is done by phone call and applying takes just one simple form. Applicants must be age in good health with no major medical impairments. 1 Eligibility for Executive Class Underwriting is based on health, age, sex, income, occupational risk, and other factors. Additional requirements may be requested, depending on answers to medical and nonmedical questions in the application. Policy must be life insurance with accumulation design (minimum non-modified endowment contract death benefit (level or increasing) with premiums illustrated at 7-Pay Premium or at least 90% of Guideline Level Premium. One only simplified underwriting program offered per insured. Best risk class available is Preferred (requires Pacific Healthy Rewards credits) For Financial Professional Use Only. Not For Use With The Public. 1 of 6

2 AVAILABLE RIDERS Riders will likely incur additional charges and are subject to availability, restrictions, and limitations. Clients should be shown policy illustrations with and without riders to help show the rider s impact on the policy s values. For rider details, request an illustration or refer to the Technical Guide available from your Pacific Life representative. STANDARD (Issued with Policy) 2% Interest Guarantee on Termination Rider, R15IGT or ICC15 R15IGT* Alternate Loan Rider, Form #R10ALR Conversion Rider, Form #R13CON or ICC13 R13CON* Overloan Protection 3 Rider, Form #R15OLP and R15OLP SP or ICC15 R15OLP and ICC15 R15OLP SP* Short-Term No-Lapse Guarantee Rider, Form #R02NL5 Terminal Illness Rider, Form #R12TII or ICC12 R12TII* Available only if PLBR 2 is not elected OPTIONAL (Must Be Elected at Policy Issue) Annual Renewable Term Rider (ARTR), Form #R17ART and S17ART or ICC17 R17ART and ICC17 S17ART* Annual Renewable Term Rider Additional Insured (ARTR-AI), Form #R17RTA and S17RTA or ICC17 R17RTA and ICC17 S17RTA* Benefit Distribution Rider, Form #R15BDR Enhanced Performance Factor Rider (EPFR), Form #R18EPF and S18EPF or ICC18 R18EPF and ICC18 S18EPF* No-Lapse Guarantee Rider, Form #R17FNL and S18FNL or ICC17 R17FNL and ICC18 S18FNL* Premier Living Benefits Rider 2 (PLBR 2), Form #R18ADB and S18ADB or ICC18 R18ADB and ICC18 S18ADB* Premier LTC Rider, Form #R15LTC and R15LTC SP or ICC15 R15LTC and ICC15 R15LTC SP* Scheduled Annual Renewable Term Rider, Form #R15SRT and S17SRT or ICC15 S15SRT and ICC17 S17SRT* SVER-3 Term Insurance Rider (SVER-3), Form #R18SV3 and S18SV3 or ICC18 R18SV3 and ICC18 S18SV3* * Form number based on state of policy issue. POLICY CHARGES Life insurance is subject to underwriting and approval of the application and will incur monthly policy charges. Indexed 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. Monthly Charges: Administrative Charge: $10 to age 121. Cost of Insurance Charge: Rate per $1,000 of Net Amount at Risk, applies up to age 121. Coverage Charge: Rate per $1,000 of initial Basic, ARTR, and SVER-3 coverage amounts plus a flat rate for the initial Basic Coverage layer only. Applies for first 10 coverage years, current. Applies on all coverages to age 121, guaranteed maximum. Any Applicable Rider and Optional Benefit Charges. Other Charges: Premium Load (deducted from each premium payment): 5.20% non-qualified, 4.20% qualified. For internal exchanges: 3.25% non-qualified, 2.25% qualified. Guaranteed maximum: 6.20%. Surplus Premium Load: Applies only in first policy year and only to the amount of premium over 10x Target Premium or $3 million, whichever is less. On a guaranteed basis, the load is 20% to age 121. Surrender Charge: Applies upon policy surrender within 10 years of any Basic Coverage layer issue date. 2 of 6 For Financial Professional Use Only. Not For Use With The Public.

3 FEATURE SPOTLIGHT ENHANCED PERFORMANCE FACTOR RIDER FLEXIBILITY Electing this optional rider 2 at policy issue provides additional interest crediting potential in the indexed accounts. At policy issue, the policyowner will elect one of three rider designs Classic (no charges, no performance factors), Performance (medium charges, medium performance factors), or Performance Plus (high charges, high performance factors). The policyowner may change rider designs as often as once per year, at the policy anniversary. The rider design change would apply to Segments created on or after the policy anniversary, giving policyowners the flexibility to shift their policy s potential over time. BENEFIT DISTRIBUTION RIDER If elected at policy issue, the optional Benefit Distribution Rider 3 allows the policyowner to designate 50% to 100% of the policy s death benefit to be paid as guaranteed monthly or annual benefits to the policy beneficiaries over 5 to 30 years. Any death benefit not designated as monthly or annual payments will be paid as lump sum. As a nonguaranteed 4 benefit, the policyowner may benefit from higher cash value potential through the Benefit Distribution Rider Credit. HIGH EARLY CASH SURRENDER VALUE FLEXIBILITY If elected at policy issue, the optional SVER-3 Term Insurance Rider 2 may increase the ratio of cash surrender value to premiums paid during the policy s early years, which may be useful in certain business planning and premium financing scenarios. NO-LAPSE GUARANTEE To keep the death benefit in force regardless of interest crediting rate, clients get four to 20 years of Short-Term No-Lapse Guarantee Rider 2,5 coverage at no additional cost. Clients may choose to extend the no-lapse guarantee for a flexible duration up to insured s lifetime by electing the optional No-Lapse Guarantee Rider 2,6 at policy issue for additional cost. Refer to the policy illustration for additional details. 2 Riders will likely incur additional charges and are subject to availability, restrictions, and limitations. Clients should be shown policy illustrations with and without riders to help show the rider s impact on the policy s values. 3 Pacific Life may reduce policy charges on a non-guaranteed basis in the form of a non-guaranteed Benefit Distribution Rider Credit. The rider s Periodic Payment of the death benefit reflects a guaranteed, level 2% annual interest rate. If the rider is not elected, the beneficiary can elect to receive periodic payments under an Income Benefit plan we make available to them at the insured s death that may credit a higher or lower interest rate than the rider s 2% guaranteed rate. However, the election of an Income Benefit plan at the insured s death will not result in any non-guaranteed reduction of policy charges while the policy is in force. Once elected at policy issue, the rider s Periodic Payment elections may not be changed unless the policyowner is approved for an unscheduled Basic Coverage face amount increase as specified in the contract. Exercising other available riders may adversely affect or limit the Benefit Distribution Rider. 4 Pacific Life Insurance Company reserves the right to change or modify any non-guaranteed or current elements. The right to modify these elements is not limited to a specific time or reason. 5 Short-Term No-Lapse Guarantee Rider is issued with all policies electing Death Benefit Option A or B with insureds issue ages 75 and under. Paying only the Short- Term No-Lapse Premiums will guarantee the death benefit from four to 20 years, but will not guarantee cash value accumulation. If your client discontinues paying the Short-Term No-Lapse Premiums, the no-lapse feature will terminate before the guaranteed duration. If this occurs, additional premiums in an amount equal to the short-fall can be paid to bring the no-lapse feature back in-force. If policy loans or withdrawals are taken, additional premiums may be required to keep the no-lapse feature in force. Additional premiums may be required to continue the policy beyond the guaranteed duration. 6 The No-Lapse guarantee, depending on how your client structures their policy, has a maximum duration of the insured's lifetime, subject to certain limits. If your client s net no-lapse guarantee value is zero, the no-lapse feature terminates. If the no-lapse feature terminates, additional premiums would be required to resume the no-lapse guarantee. If policy performance is such that your client s policy is being maintained solely by the no-lapse guarantee, your client s policy will not build cash value. For Financial Professional Use Only. Not For Use With The Public. 3 of 6

4 7 Indexed Accounts, 1 Fixed Account Fixed Account Credits current declared interest rate. Current rate guaranteed throughout the first policy year. Guaranteed minimum annual crediting rate of 2%. Indexed Accounts 1-Year 1-Year High Par 1-Year High Cap 1-Year No Cap 2-Year High Par 5-Year Underlying Index (Excluding Dividends) S&P 500 index (S&P 500 ) Composite (1/3 each) of: Hang Seng, 1-Year International EURO STOXX 50, and MSCI Emerging Markets All Indexed Accounts guarantee a minimum interest crediting rate of 0%. Each premium, net a premium load, is applied first to the fixed account. Policyowners may transfer all or a portion of the fixed account balance to any combination of the indexed accounts on the 15 th of each month. Each transfer from the fixed account to an indexed account creates a unit of value called a segment. Interest is credited to each segment once it reaches the end of its one-, two-, or five-year segment term. Features and charges may vary based on the indexed account. Refer to the illustration for details. 2% Interest Guarantee on Termination The 2% Interest Guarantee on Termination Rider provides an alternate accumulated value (AAV) that, if higher than the policy s actual accumulated value, is used to determine the amount available at the insured s death, policy surrender, or to help prevent policy lapse. The AAV increases with premiums paid and is reduced by policy distributions and some of the current policy charges. The AAV is then credited with 2% annual interest on current allocations among the fixed account, one-year indexed accounts, and loan account; and excludes any indexed segment credits or additional interest credits. The rider is included with all PIA 6 policies at no additional cost. Enhanced Performance Factor Rider In PIA 6, each indexed account applies a guaranteed 1.0 Performance Factor at Segment Maturity. Policyowners may increase the segment Performance Factor and thus the potential index-based interest credit if they elect the optional Enhanced Performance Factor Rider 2 at policy issue for a monthly rider charge. Segment s Indexed Interest Credit x Segment s Performance Factor = Segment s Total Indexed Interest Credit The rider offers the flexibility of three designs, each with its own level of monthly rider charges and Performance Factors (samples shown for policy years below). Policyowners may switch between designs as often as annually at the policy anniversary. Any rider design would apply to Segments created after the policy anniversary. The rider will increase a Segment s value only when the additional interest credited due to the Rider Performance Factor exceeds the deductions for the rider s monthly charges over the Segment Term. Refer to the illustration s detailed credits and charges report for details. RIDER DESIGN Classic (A) Performance (B) Performance Plus (C) CURRENT PERFORMANCE FACTOR GUARANTEED RIDER CHARGE 1.0 (1.0 Guaranteed) 0% Monthly (0% Annualized) 2.18 (1.49 Guaranteed) 0.415% Monthly (4.98% Annualized) 2.76 (1.72 Guaranteed) 0.625% Monthly (7.50% Annualized) For brevity, the above chart reflects rider charges and segment performance factors in policy years 10 20, although they apply in all years 2+. Each Segment Performance Factor is the sum of the 1.0 Guaranteed Performance Factor and the Rider Performance Factor. The guaranteed rider charge is assessed monthly as a percentage of each Segment s Monthly Balance. The Performance Factor applies at Segment maturity based on the Average Segment Monthly Balance over the Segment Term. Current Performance Factors will be different for the 1-Year High Cap Indexed Account. Current Performance Factors are as of Feb Pacific Life Insurance Company reserves the right to change or modify any nonguaranteed or current elements. The right to modify these elements is not limited to a specific time or reason. 4 of 6 For Financial Professional Use Only. Not For Use With The Public.

5 Optional Long-Term Care or Chronic Illness Protection Clients may choose to include chronic illness or long-term care protection with eligible policies by electing either the Premier Living Benefits Rider 2 (Accelerated Death Benefit Rider for Chronic and Terminal Illness) or the Premier LTC Rider (Accelerated Death Benefit Rider for Long-Term Care) at policy issue. Both riders allow the policyowner to accelerate a portion of the death benefit as rider benefit payments while the insured is certified as having a chronic illness (unable to perform at least 2 of the 6 activities of daily living or requiring substantial supervision due to cognitive impairment). The Premier Living Benefits Rider requires the insured's chronic illness to be deemed permanent. Lifetime and monthly maximum rider benefits vary by rider selection. See the policy illustration or Technical Guide for details. Long-term care riders are designed to help cover the costs of long-term care. On the other hand, chronic illness riders are a life insurance component that enhance the flexibility of a life insurance policy to provide benefits if the insured develops a chronic illness. Chronic illness riders do not qualify and do not intend to qualify as long-term care insurance and are not intended to replace the need for long-term care insurance. Eligible insureds for both riders are issue ages 18-75, subject to additional underwriting requirements and a one chronic illness and one long-term care rider per insured issue limit. Riders are not available on Juvenile, Guaranteed Issue, or Simplified Issue policies, policies issued as conversions from other policies (unless the policy was included in the original policy), or on policies with scheduled face amount increases. The Premier LTC Rider is not available on a policy with the Premier Living Benefits Rider 2 or Benefit Distribution Rider. The Premier LTC Rider is subject to eligibility and underwriting approval. The policy to which this rider is attached is subject to a medical exam, Medical Information Bureau (MIB), and prescription report; and may include obtaining records from your physician, a Personal History Interview, and a Cognitive Assessment. The amount and duration of the maximum LTC Benefits and the rider charge will vary based on the benefit options elected at time of application and the use of policy benefits and features. The rider charge is included as part of the monthly deduction for the policy. Rates for long-term care coverage under this rider may increase over time, but not above those stated in the policy. This rider is intended to provide federally tax-qualified long-term care insurance as defined in IRC Section 7702B(b). Exclusions apply. See back cover. For Premier Living Benefits Rider 2 and Premier LTC Rider, rider benefit payments will reduce policy values, including death benefit, cash surrender value, and policy debt, and may adversely affect the benefits under other riders. Tax treatment may depend on factors such as the amount of benefits, the amount of qualified expenses incurred, or if similar benefits are being received under other contracts. For the Premier Living Benefits Rider 2, these amounts may also be in relation to certain IRS limitation (referred to as per diem limits). Tax laws relating to accelerated death benefits are complex. Receipt of accelerated death benefits may affect eligibility for public assistance such as Medicaid. When benefits are received from multiple policies providing long-term care or chronic illness benefits for a given insured, including policies with different owners, all of those benefits must be aggregated to determine their taxability. Pacific Life cannot determine whether the benefits are taxable. If there are any questions concerning the tax implications of these riders, qualified and independent legal and tax advisors should be consulted. There is no up-front cost or monthly rider charge for the Premier Living Benefits Rider 2. The cost of exercising the rider is that the death benefit is reduced by an amount greater than the rider benefit payment itself to reflect the early payment of the death benefit. Benefits paid by accelerating the policy s death benefit may or may not qualify for favorable tax treatment under Section 101(g) of the Internal Revenue Code of Cash Value Access Provisions Any policy withdrawals, loans, and loan interest will reduce policy values and may reduce benefits. Withdrawals: Available after the first policy year, within policy limits. Standard Loans: 2.25% annual interest rate charged; 2.00% annual interest rate credited guaranteed in all years (2.25% annual interest credited in policy years 6+, current). Alternate Loans: Charge a current annual interest rate (guaranteed maximum of 7.5%); Credit one-year indexed accounts interest earned on maturing segments. Loan net cost may result in lower or higher net costs, are more volatile, and carry greater risk than Standard Loans. Overloan Protection The Overloan Protection 3 Rider, if exercised at the end of planned policy distributions, may help prevent policy lapse, particularly for policies with large outstanding loan balances. There is a one-time charge to exercise the rider, certain eligibility requirements must be met, and no further policy changes may be made after rider exercise. To help you illustrate the conditions for successful rider exercise, use Navigator illustration system s Autoadjust illustration inputs for OLP option in the Riders tab. The potential tax consequences of the Overloan Protection 3 Rider have not specifically been ruled on by the IRS or courts. Clients should consult their tax advisors. For Financial Professional Use Only. Not For Use With The Public. 5 of 6

6 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. 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. The "S&P 500 Index" is a product of S&P Dow Jones Indices LLC, a division of S&P Global, or its affiliates ( SPDJI ), and has been licensed for use by Pacific Life. Standard & Poor s and S&P are registered trademarks of Standard & Poor s Financial Services LLC, a division of S&P Global ( S&P ); Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ); and these trademarks have been licensed for use by SPDJI and sublicensed for certain purposes by Pacific Life. Pacific Life s Products are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones, S&P, their respective affiliates and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions, or interruptions of the S&P 500 Index. Hang Seng Indexes Company Limited ("HSIL") and Hang Seng Data Services Limited ("HSDS") have licensed Pacific Life Insurance Company to use the Hang Seng Index in connection with this life insurance product. This product and its 1-Year International Indexed Account are not sponsored, endorsed, sold or promoted by HSIL or HSDS. HSIL and HSDS make no representation regarding the advisability of purchasing a life insurance product. Please read the disclaimer in relation to the Hang Seng Index in the policy illustration. For more information about the Hang Seng Index, please visit The Product and its 1-Year International Indexed Account referred to herein is not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such Product and any included index. The Policy Contract contains a more detailed description of the limited relationship MSCI has with Pacific Life Insurance Company and any related Product. The EURO STOXX 50 is the intellectual property (including registered trademarks) of STOXX Limited, Zurich, Switzerland ( STOXX ), Deutsche Börse Group or their licensors, which is used under license. The product is neither sponsored nor promoted, distributed or in any other manner supported by STOXX, Deutsche Börse Group or their licensors, research partners or data providers and STOXX, Deutsche Börse Group and their licensors, research partners or data providers do not give any warranty, and exclude any liability (whether in negligence or otherwise) with respect thereto generally or specifically in relation to any errors, omissions or interruptions in the EURO STOXX 50 or its data. PREMIER LTC RIDER EXCLUSIONS, EXCEPTIONS, AND LIMITATIONS: We will not pay benefits for any room and board, care, treatment, services, equipment, or other items for care or services: 1) provided by the insured s immediate family unless he or she is a regular employee of an organization which is providing the treatment, service or care; and the organization receives the payment for the treatment, service or care; 2) for which no charge is normally made in the absence of insurance; 3) that result from an attempt at suicide (while sane or insane) or an intentionally self-inflicted injury; 4) that result from alcoholism, or drug addiction or chemical dependency; 5) that result from participation in or attempting a felony, riot, or insurrection; 6) provided outside the United States of America unless the initial and any annual renewal certification are completed by a Licensed Health Care Practitioner; 7) that result from active duty in foreign or U.S. armed forces; 8) that result from an act of war; 9) provided in a government facility (unless otherwise required by law); 10) for which benefits are available under Medicare (including amounts that would be reimbursable but for the application of a deductible or coinsurance amount) or other governmental program (except Medicaid), any state or federal workers compensation, employer s liability or occupational disease law, or any motor vehicle no-fault law; 11) for preexisting conditions that are not disclosed in the application, if services begin with the first six months of policy issue; or 12) received while the rider is not in force. Pre-Existing Conditions We will not reduce or deny any claim under the Long-Term Care Benefit riders because of a sickness or physical or medical condition disclosed on the application. Pacific Life Insurance Company Newport Beach, CA (800) Pacific Life Insurance Company is licensed to issue insurance products in all states except New York. Product availability and features may vary by state. Insurance products and their guarantees, including optional benefits and any crediting rates, are backed by the financial strength and claims-paying 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 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 may limit availability of some optional riders based on their client s age and other factors. Your broker-dealer or firm can help you determine which optional riders are available and appropriate for your clients. Investment and Insurance Products: Not a Deposit Not Insured by any Federal Government Agency Not FDIC Insured No Bank Guarantee May Lose Value 6 of For Financial Professional Use Only. Not For Use With The Public /19 E222