Pacific PRIME UL-NLG Flexible Premium, Universal Life Insurance. Flexible and Efficient Asset Protection. Pacific Life Insurance Company PP-2D

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1 Pacific PRIME UL-NLG Flexible Premium, Universal Life Insurance Flexible and Efficient Asset Protection PP-2D Pacific Life Insurance Company

2 1 Pacific PRIME UL-NLG Help Protect Your Assets with Life Insurance In planning for a financially secure future for yourself and your loved ones, have you considered the impact of taxes? Without proper planning, your financial legacy can be eroded by 39.6% 1 or more due to income and estate 2 taxes at your death. Life insurance is designed to help. Cash value life insurance is the only asset that can offer all three of the following benefits: 1) a tax-free 3 death benefit for loved ones, 2) tax-deferred growth of the policy s cash value, and 3) a potential tax-free 4 income stream through withdrawals and policy loans. Keep in mind that withdrawals and loans will shorten or negate the no-lapse guarantee of this policy and will reduce the available cash value. Any policy withdrawals, loans and loan interest will also reduce policy values and may reduce benefits. So discuss the impact of taking withdrawals and loans from your policy with your life insurance producer and choose wisely when considering accessing your policy s cash value. Flexible and efficient, cash value life insurance can be used to transfer and preserve wealth for generations. See what it can do for you. Help protect your assets with Pacific PRIME UL- NLG 5, a universal life insurance policy that provides flexible no-lapse guarantees of up to a lifetime. Flexible and Efficient Asset Protection Pacific PRIME UL-NLG offers: e No-Lapse Guarantee Durations of Up to a Lifetime e Guaranteed Interest Crediting Rates e Flexible Premiums Plus e Tax-Free 3 Death Benefit for Loved Ones e Tax-Deferred Growth of Cash Value e Tax-Free 4 Access Options for You Helping You Protect Your Assets Pacific PRIME UL-NLG may help you if you have the following traits: e Moderate to high net worth e Age 50 or older, but flexible enough for any age e Have sufficient source of retirement income elsewhere e Need for legacy planning or estate tax planning e Potential desire for charitable gifting 1 Top marginal income tax bracket, irs.gov, Jan According to the American Taxpayer Relief Act of 2012, the federal estate, gift and generation skipping transfer (GST) tax exemption amounts are all $5,000,000 (indexed for inflation effective for tax years after 2011); the maximum estate, gift and GST tax rates are 40%. 3 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Section 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include, but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Section 101(a)(2) (i.e. the transfer-for-value rule ); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Section 101(j). 4 For federal income tax purposes, tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death (any outstanding policy debt at time of lapse or surrender that exceeds the tax basis will be subject to tax); (3) withdrawals taken during the first 15 policy years do not cause, occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. 5 Policy Form #P10P1N.

3 2 It Can Be as Easy as Is Pacific PRIME UL-NLG right for you? Start by asking yourself just 3 simple questions: 1 Do you want flexible life insurance coverage that can cover your whole family in one convenient policy? 3 Do you want extra protection in case you become disabled, terminally ill, or die due to an accident? 2 Do you want a guarantee that your coverage will stay in place, no matter how your policy performs? Take a closer look at how Pacific PRIME UL-NLG can help you address these questions.

4 3 1 Flexible Coverage Options for the Whole Family Pacific PRIME UL-NLG can help provide financial protection for you, your family, your business, and your legacy through a tax-free 6 death benefit. You can structure your policy to cover just you or, through optional policy benefits called riders, 7 your whole family. Death Benefit Coverage Basic Coverage on the primary insured (you). Optional level term insurance on any member of your immediate family. Annual Renewable Term Rider Additional Insured (Form #R08RTA) 7 Covers any member of the primary insured s immediate family. Children s Term Rider (Form #R84-CT) 7 Covers primary insured s children aged 14 days to 25 years. Adjust Your Coverage Amount After policy issue, increases are not allowed. However, you may scale down your coverage as soon as the second policy year. Your Basic Coverage amount after all decreases have been taken must be at least $1,000. Policy charges may or may not be affected accordingly. See your policy for details. Flexibility for Growing Families What if you get married, have a baby, or need to increase your coverage before your 40 th birthday? You can reserve the flexibility to buy additional death benefit coverage without requiring further medical underwriting through the Guaranteed Insurability Rider (Form #R93-GI). 7 Just contact us within 31 days of a qualifying event and an additional Pacific PRIME UL-NLG policy will be issued for the amount requested. Request the rider and see your policy for age-based coverage limits, monthly rider charges, and other guidelines. 6 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Section 101(a)(1). In certain situations, however, life insurance death benefits may be partially or wholly taxable. Situations include, but are not limited to: the transfer of a life insurance policy for valuable consideration unless the transfer qualifies for an exception under IRC Section 101(a)(2) (i.e. the transfer-for-value rule ); arrangements that lack an insurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Section 101(j). 7 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 4 2 Guarantee Your Death Benefit for the Duration You Choose We understand that you have better things to worry about than your life insurance policy. That s why Pacific PRIME UL-NLG features a guarantee to help keep your policy in-force even if your policy s net cash value drops to zero. To provide the security of guaranteed coverage at predictable premiums, the Flexible Duration No-Lapse Guarantee III Rider (Form #R03FNL) 8 guarantees that your policy will stay in force for the duration you choose, no matter how your policy performs. 9 Choose your no-lapse guarantee duration and pay your premiums as planned. 10 It s that easy. You Choose Your No-Lapse Guarantee Duration Examples of No-Lapse Guarantee Durations Lifetime To Age 110 To Age 105 To Age 100 To Age 96 low Premiums high 8 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. 9 The no-lapse guarantee is based on the net no-lapse guarantee value being greater than zero. The net no-lapse guarantee value is a policy calculation that mirrors the growth of your policy s cash value, but grows at a different interest rate and is reduced by different charges than your policy s cash value. It cannot be accessed through withdrawals or policy loans and is merely a calculation to determine whether your no-lapse guarantee is in effect. 10 The Flexible Duration No-Lapse guarantee, depending on how you structure your policy, has a maximum duration of the insured s lifetime, subject to certain limits. If your 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 policy is being maintained solely by the no-lapse guarantee, your policy will not build cash value.

6 5 3 Financial Features that Enhance Flexibility Your policy offers optional features called riders for additional life insurance and financial needs. Riders help expand the flexibility and protection of your policy. Some riders are automatically included with eligible policies. Other riders must be elected at policy issue for additional cost. 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. Ask your life insurance producer to provide you with more details on the financial features available to you through riders.

7 6 Optional Rainy Day Protection Life is full of uncertainties. You can plan for success in the event of an emergency by having a backup plan. Pacific Prime UL-NLG offers optional riders that can provide benefits in the event of disability, terminal illness, or death due to an accident. e Accidental Death Benefit Rider (Form #R84-AD) Pays an additional death benefit to the policy s beneficiaries if the primary insured dies due to a qualifying accident. e Terminal Illness Rider 11 Accelerates payment of a portion of the death benefit if the primary insured is diagnosed as terminally ill (12 months or fewer to live). Benefit will be a lump sum payment not to exceed $250,000. e Owner Waiver of Charges Rider (Form #R84- OWC) Waives policy charges if the policyowner (who is not the primary insured) becomes totally disabled before age 60. e Waiver of Charges Rider (Form #R84-WC) Helps keep coverage in place by waiving all policy charges if the primary insured is diagnosed with a total disability prior to age 60. Benefit takes effect after a three-month qualifying period. Product Guarantees & Charges Flexible Duration No-Lapse Guarantee Provided through the Flexible Duration No-Lapse Guarantee III Rider (Form #R03FNL), your policy s no-lapse guarantee will be in effect for the duration of your choosing as long as the policy s net no-lapse guarantee value is greater than zero. The net no-lapse guarantee value grows at a different interest rate and is reduced by different charges than your policy s net cash value. You may take withdrawals and loans from your policy s cash value, but doing so may reduce or negate your no-lapse guarantee. If you plan on taking withdrawals or loans from your policy, you should request illustrations from your life insurance producer to understand the potential impact. Interest Rate Guarantee Your policy s cash value will be credited with a current rate that Pacific Life guarantees for the first policy year. The current rate may change periodically, but is guaranteed to never be less than 3.00%. Additionally, in policy year 21 and afterward, Pacific Life currently credits an additional 0.60% to the current crediting rate, though this is not a policy guarantee. Policy Charges The cost of the life insurance and benefits provided through the policy is deducted monthly in the form of policy charges, which include an Administrative Charge, Coverage Charge, Cost of Insurance Charge, and any applicable rider charges. Additionally, a premium load is deducted from each premium payment. To understand how the policy charges will affect your policy s cash value, request a personalized illustration that includes the Breakout of Charges report. 11 Terminal Illness Rider (Form #R12TIU or ICC12 R12TIU form # based on state in which policy is issued) is an Accelerated Death Benefit Rider for Terminal Illness. 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. Rider benefit payments will reduce the death benefit, cash surrender value, and any policy debt. Additionally, rider benefit payments may adversely affect the benefits under other riders. 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 Tax treatment of an accelerated death benefit due to terminal illness depends on the life expectancy of the insured at the time benefits are accelerated. Receipt of accelerated death benefits may affect eligibility for public assistance programs such as Medicaid. Tax laws relating to accelerated death benefits are complex. Pacific Life cannot determine whether the benefits are taxable. Clients are advised to consult with qualified and independent legal and tax advisors for more information.

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. 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. Only a life insurance producer who is also a fiduciary is required to advise if the product purchase and any subsequent action taken with regard to the product are in their client s best interest. Life insurance is subject to underwriting and approval of the application and will incur monthly policy charges. 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. 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 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 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. 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 life insurance producer can help you determine which optional riders are available and appropriate for you. Investment and Insurance Products: Not a Deposit Not Insured by any Federal Government Agency Not FDIC Insured No Bank Guarantee May Lose Value PP-2D /17