CONTRACT SUMMARY Pacific Life Insurance Company P.O. Box 2378 Omaha, NE 68103-2378 (800) 722-4448 Contract Owners (800) 722-2333 Registered Representatives www.pacificlife.com Pacific Secure Income Annuity Disclosure Contract Form Series: 30-1294 Pacific Secure Income is an individual deferred fixed annuity contract. It is a deferred annuity, which means your annuity payments start at a future date. You can use an annuity to receive income for life or a specified period. It is not meant to be used to meet short-term financial goals. NOTE: This contract does not provide a cash surrender value. Depending on the annuity payout option you choose, this contract may not pay a death benefit prior to the start of annuity payments. Purchase Payments You can establish this contract with an initial purchase payment of at least $15,000. At the time of application, you choose the annuity option, annuity payment start date and payment frequency. The annuity option and payment frequency may not be changed after the contract issue date. Payments are required to begin at least thirteen (13) months from the contract issue date and no later than the earliest of 30 years from the contract issue date and age 90 (70½ for qualified contracts). For all annuity options except a Period Certain only payout option, you may make additional Purchase Payments to your contract, subject to the following restrictions: (i) the minimum subsequent payment is $500; (ii) the payment must meet Required Minimum Distribution requirements; (iii) the payment must not be within thirteen (13) months of the annuity payment start date. Annuity Options Subject to state and firm availability, the annuity options and their corresponding descriptions available under the contract are: Option 1 Single Life Only. Annuity payments are made during the annuitant s lifetime. Payments stop when the annuitant dies. If the owner or annuitant dies prior to the annuity payment start date, no death benefit will be payable under the Contract. Option 2 Single Life with Period Certain. Annuity payments are made for a guaranteed period, usually 5-30 years (in whole years only) as chosen by you, and thereafter as long as the annuitant lives. If the annuitant dies after the annuity payment start date but before the guaranteed annuity payments are completed, in lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. Once all the payments under the guaranteed period have been made, payments stop when the annuitant dies. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 3 Single Life with Cash Refund. Annuity payments are made during the annuitant s lifetime. If the annuitant dies before the total of all annuity payments made equals or exceeds the total amount you paid for the annuity, an amount equal to the purchase payment, less total annuity payments made under the contract, will be made in a single sum. If the annuitant dies and the total of all annuity payments made is equal to or exceeds the purchase payments, then no lump sum will be paid. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 4 Single Life with 100% Return of Purchase Payments Death Benefit. Annuity payments are made during the annuitant s lifetime. Payments stop when the annuitant dies. If the first owner or last Annuitant (first Annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. CS1294 Page 1 of 6 9/17 97035-17A
Option 5 Single Life with Installment Refund. Annuity payments are made during the annuitant s lifetime. If the annuitant dies after the annuity payment start date but before the total of all annuity payments made equals or exceeds the purchase payments, annuity payments will continue to be made until the total amount of annuity payments made equals the total amount of purchase payments; the final payment may be less than your scheduled annuity payment. In lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. If the annuitant dies and the total amount of annuity payments made is equal to or exceeds the purchase payments, then no additional annuity payments will be made. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 6 Joint Life Only. Annuity payments are made as long as either the annuitant or joint annuitant lives. After the death of the first annuitant, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made during the lifetime of the surviving annuitant. Payments stop when both annuitants have died. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, no death benefit will be payable under the Contract. Option 7 Joint Life with Period Certain. Annuity payments are made for a guaranteed period, usually 5-30 years (in whole years only) as chosen by you, and thereafter for as long as either annuitant lives. Upon the later of the first annuitant s death or the end of the specified period, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made during the lifetime of the surviving annuitant. If both annuitants die before the guaranteed annuity payments are completed, guaranteed annuity payments will continue until the end of the guaranteed period. In lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. Once all the payments under the specified period have been made, payments stop when the last surviving annuitant dies. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 8 Joint Life with Cash Refund. Annuity payments are made as long as either annuitant lives. After the death of the first annuitant, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made during the lifetime of the surviving annuitant. If both annuitants die before the total of all annuity payments made under the contract equals or exceeds the total amount you paid for the annuity, an amount equal to the purchase payments, less total annuity payments made under the contract, will be made in a single sum. If both Annuitants die and the total of all annuity payments made under the contract is equal to or exceeds the total amount of the purchase payment(s), then no lump sum amount will be paid. If the first owner or last annuitant (first annuitant if a nonnatural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 9 Joint Life with 100% Return of Purchase Payments Death Benefit. Annuity payments are made as long as either annuitant lives. After the death of the first Annuitant, a percentage of the Annuity Payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of the application, will be made during the lifetime of the surviving Annuitant. Payments stop once both annuitants have died. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 10 Joint Life with Installment Refund. Annuity payments are made as long as either annuitant lives or while the total of all annuity payments is less than the purchase payment. After the death of the first annuitant and the total of all annuity payments equals or exceeds the purchase payment, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of the application, will be made during the lifetime of the surviving annuitant. If both annuitants die before the total of all annuity payments made equals or exceeds the total amount of purchase payment(s), annuity payments will continue to be made until the total amount of annuity payments made equals the purchase payments; the final payment may be less than your scheduled annuity payment. In lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. If both annuitants die and the total amount of annuity payments made under the contract is equal to or exceeds the purchase payment, then no additional annuity payments will be paid. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. CS1294 Page 2 of 6 9/17 97035-17A
Option 11 Joint and Survivor Life Only. Annuity payments are made during the lifetime of the primary annuitant. If the primary annuitant dies before the joint annuitant, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made as long as the joint annuitant lives. Payments stop when both annuitants have died. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, no death benefit will be payable. Option 12 Joint and Survivor Life with Period Certain. Annuity payments are made for a guaranteed period, usually 5-30 years (in whole years only) as chosen by you, and thereafter for as long as the primary annuitant is alive. Upon the later of the primary annuitant s death or the end of the specified period, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made during the lifetime of the joint annuitant, provided the joint annuitant survives the primary annuitant. If both annuitants die before the guaranteed annuity payments are completed, guaranteed annuity payments will continue until the end of the guaranteed period. In lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 13 Joint and Survivor Life with Cash Refund. Annuity payments are made during the lifetime of the primary annuitant. If the primary annuitant dies before the joint annuitant, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of application, will be made as long as the joint annuitant lives. If both annuitants die before the total of all annuity payments made equals or exceeds the total amount you paid for the annuity, an amount equal to the purchase payments, less total annuity payments made under the contract, will be made in a single sum. If both Annuitants die and the total of all annuity payments made under the contract is equal to or exceeds the total amount of the purchase payment(s), then no lump sum amount will be paid. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 14 Joint and Survivor Life with 100% Return of Purchase Payments Death Benefit. Annuity payments are made during the lifetime of the primary annuitant. After the death of the primary annuitant, a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of the application, will be made during the lifetime of the joint annuitant. Payments stop when both annuitants have died. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 15 Joint and Survivor Life with Installment Refund. Annuity payments are made during the lifetime of the primary annuitant or while the total of all annuity payments is less than the purchase payment. If the primary annuitant dies before the joint annuitant, after the total of all annuity payments equals or exceeds the purchase payment(s), a percentage of the annuity payment, either 100%, 75%, 67%, or 50% as chosen by you at the time of the application, will be made during the lifetime of the joint annuitant. If both annuitants die before the total of all annuity payments made equals or exceeds the purchase payment(s), annuity payments will continue to be made until the total amount of annuity payments made equals the purchase payments; the final annuity payment may be less than your scheduled annuity payment. In lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. If both annuitants die and the total amount of annuity payments made under the contract is equal to or exceeds the purchase payment, then no additional annuity payments will be paid. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. Option 16 Period Certain. Annuity payments are made for a guaranteed period, usually 5-30 years (in whole years only) as chosen by you. If the owner or annuitant dies after the annuity payment start date but before the guaranteed annuity payments are completed, in lieu of receiving the remaining guaranteed annuity payments, an election can be made to receive the present value of the remaining guaranteed annuity payments in a single sum. If all guaranteed payments have been paid, then no further annuity payments will be paid. If the first owner or last annuitant (first annuitant if a non-natural owner) dies prior to the annuity payment start date, a death benefit equal to the total amount of the Purchase Payments will become payable under the Contract. If this Annuity Option is chosen, no additional purchase payments are allowed. CS1294 Page 3 of 6 9/17 97035-17A
Inflation Protection Option You can choose, at the time of application, an annual increase of 2%, 3% or 4% of your annuity payments. The increase will occur every year on the annuity payment start date anniversary, beginning on the first anniversary of the annuity payment start date. The election and increase amount cannot be changed after contract issue. If you elect this feature, you may receive a lower annuity payment initially than you would have if you did not elect this feature, but you could potentially receive more income over time. Annuity Payment Start Date Adjustment For all annuity options except Single Life Only, Joint Life Only, Joint and Survivor Life Only and Period Certain options, you may make a one-time election to either advance or defer your annuity payment Start date. Your Annuity Payment amount will be adjusted if you change your Annuity Payment Start Date based on each year that you advance or defer your Annuity Payment Start Date. You may elect any date within five (5) years before or after your annuity payment start date, subject to the following limitations: The annuitant must be living; The Adjusted annuity payment start date must be at least thirteen (13) months from the date on which the most recent Purchase Payment was received and no later than thirty (30) years from the Contract Date shown in the Contract Specifications; Any owner(s) age must not be greater than the Maximum Age at the annuity payment start date (70½for qualified contracts except Roth IRA, 90 for non-qualified and Roth IRA) on the Adjusted annuity payment start date; and If the Contract is Qualified, the Adjusted annuity payment start date must comply with applicable Required Minimum Distribution requirements. Annuity Payment Acceleration Option After the Annuity Payment Start Date, you may request a lump sum payment equal to three (3) or six (6) months of monthly annuity payments. The lump sum payment will be equal to the scheduled monthly annuity payment and the next two monthly annuity payments (if a three-month acceleration is chosen), or five monthly annuity payments (if a six month acceleration is chosen). The Annuity Payment Acceleration Option is subject to the following conditions: Your annuity frequency must be monthly; If you have a qualified contract, payment accelerations may not cross over tax years; for a three month acceleration no acceleration permitted if the next payment date is 11/1 or later and for a six month acceleration no acceleration permitted if the next payment date is 8/1 or later; You may exercise this option twice during the life of your contract; All owner(s) must be at least age 59 ½; For period certain only annuity options, the number of the accelerated payments cannot exceed the number of annuity payments remaining during the guaranteed period; If period certain or installment refund payments are being made after the death of the annuitant(s), you cannot receive more than the remaining guaranteed payments; No additional annuity payments will be made until the scheduled monthly annuity payments resume. Scheduled monthly annuity payments will resume in the fourth (if the three month acceleration is chosen) or seventh (if the six-month acceleration is chosen) month; If you exercise the Annuity Payment Acceleration Option, you cannot exercise it again until scheduled annuity payments have resumed and at least one monthly payment has been made; You must wait six (6) months from the payment acceleration transaction date to request a full or partial withdrawal of the commuted value, if available with your contract; If you have changed your Annuity Payment Start Date, you cannot exercise this option until six (6) months after the date of the change request; You must wait six (6) months from the date you request a full or partial withdrawal of the commuted value, if available with your contract; and Pacific Life is entitled to recover any overpayment of annuity payments made and/or adjust future annuity Payments because of delay or failure to notify the company of death of an owner and/or annuitant. The owner, owner s estate, successor owner or beneficiary entitled to receive any death benefit or remaining annuity benefits is liable to the company for any overpayment made, which includes payments to a payee other than the owner. Pacific Life is not responsible for any mispayments that result from delay or failure to notify the company immediately of such death. CS1294 Page 4 of 6 9/17 97035-17A
Commutation Commutation is available for non-qualified Contracts, except for the following annuity options: Single Life Only, Joint Life Only, Joint and Survivor Life Only, Single Life Only with 100% Return of Purchase Payments Death Benefit, Joint Life Only with 100% Return of Purchase Payments Death Benefit and Joint and Survivor Life with 100% Return of Purchase Payments Death Benefit. If you are at least age 59 ½, you can make a partial or full withdrawal of the commuted value any time after the annuity payment start date, provided at least one annuity payment has been generated. If you change your annuity payment start date, there will be a 6-month waiting period from the new annuity payment start date change request before you can request full or partial withdrawal of commuted value. The withdrawal amount will equal a percentage, as selected by you, of the present value of the remaining guaranteed annuity payments and will be paid to you in a single sum. The amount available for withdrawal will be the present value of the remaining guaranteed annuity payments. For partial withdrawals, any remaining guaranteed payments will be reduced by the percentage of the withdrawal taken. The interest rate used to determine the present value of remaining guaranteed annuity payments is Moody s Long-Term Corporate Bond Yield Averages, updated monthly, or a similar corporate bond index, less 0.75% plus a rate adjustment. If the annuitant is still living once all remaining guaranteed payments have been made, the originally scheduled Annuity Payment amount will be paid during the lifetime of the annuitant, if applicable under the elected annuity option. The minimum withdrawal amount is the lesser of $5,000 or 100% of the available amount and for a partial withdrawal, we may require a minimum of $250 for remaining annuity payments. NOTE: Commutation is not available for qualified contracts (including IRA and Roth IRA contracts) Additionally, you must wait six (6) months from the payment acceleration transaction date (if elected) to request a full or partial withdrawal of the commuted value. Death Benefit Depending on the annuity option you choose, before the annuity payment start date, if you or the last annuitant (first Annuitant in the case of a Non-Natural Owner) dies, or is diagnosed with a medical condition which indicates a life expectancy of 12 months or less, the contract will terminate and a death benefit may become payable. A death benefit equal to a return of the purchase payments will be paid for all annuity payout options except Single Life Only, Joint Life Only and Joint and Survivor Life Only (for these annuity payout options no death benefit will be paid). For all Joint Life payout options, if there is an annuitant living, and the spouse is the surviving annuitant and Joint Owner (if any), the contract can be spousally continued in lieu of receiving the death benefit and terminating the contract. Taxes Qualified contracts, including traditional IRA and Roth IRA are eligible for favorable tax treatment under the Internal Revenue Code (IRC). Certain payout options and certain product features may not comply with various requirements for qualified contracts, which include required minimum distributions and substantially equal periodic payments under IRC Section 72(t). Therefore, certain product features, including the ability to change the Annuity Payment Start Date and to exercise withdrawal features, may not be available or may have additional restrictions. The payment acceleration feature is available but may be considered a modification to the 72(t) program and may subject the series of 72(t) withdrawals, including any prior withdrawals, to a 10% additional tax. In addition, certain payout options may not be available for qualified contracts. Income from annuity payments received from Pacific Secure Income cannot be aggregated or combined with income from other IRA contracts/assets for purposes of satisfying the required minimum distributions. For Roth IRAs, upon the Roth IRA Owner's death, distributions to the designated beneficiaries may be subject to the required minimum distribution rules. Where the designated beneficiary is not the spouse, the beneficiary may be required to take a lump sum payment of the present value of the guaranteed payments if a death benefit becomes available. For the purpose of qualified distributions from Roth IRA, since the 5-year waiting period is tracked by the Roth IRA holder, the designated beneficiary and/or spouse who elects to treat the Roth IRA as his or her will also need to take on this responsibility going forward when claiming qualified distributions. Nonqualified contracts may not be subject to the various requirements for qualified contracts, but are still subject to an additional 10% federal tax for annuity payments, withdrawals, and other distributions prior to age 59 1/2. While there are exceptions to this additional federal tax under IRC Section 72(q), certain payment options may not comply. The payment acceleration feature may be considered a modification to the 72(q) program and may subject the series of 72(q) withdrawals, including any prior withdrawals, to a 10% additional tax. Clients should consult their tax advisors and attorneys regarding their specific situations. CS1294 Page 5 of 6 9/17 97035-17A
Other Information We may change your annuity contract from time to time to follow federal or state laws and regulations. If we do, we will tell you about the changes in writing. Many states have laws that give you a set number of days to look at an annuity contract after you buy it. If you decide during that time that you do not want it, you can return the contract and receive your purchase payment back. Read your contract s Right to Cancel provision on the cover page to learn more about your free look period. All features may not be available in all states or offered by all firms. We pay the independent producer or the independent producer s third party selling firm for selling the contract to you. This summary is not a contract and is not part of your contract with us. For questions regarding this summary, contact your producer or registered representative. If no producer or registered representative is involved, write to us at Pacific Life Insurance Company, P.O. Box 2378, Omaha, NE 68103-2378 or call Pacific Life customer service at (800) 722-4448. CS1294 Page 6 of 6 9/17 97035-17A