PACIFIC INDEXEDACCUMULATOR 5Indexed Universal Life Insurance

ESTATERETIREMENTBUSINESSFAMILY

Client Guide

Pacific Life Insurance Company

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THE FLEXIBILITY OF CASH VALUE LIFE INSURANCE

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FINANCIAL PROTECTION

A policy’s proceeds are

paid to policy beneficiaries

when the insured dies.

FINANCIAL POTENTIAL

A policy’s cash value

has the potential to grow,

less policy charges.

FINANCIAL FEATURES

A policy’s optional

features are available for

additional life insurance

and financial needs.

PROTECT THE BOTTOM LINE

Your business is your legacy. It’s also your livelihood. Good decisions,

smart money management, and herculean effort have helped you

succeed.

You are wise to surround yourself with top talent. They help your business excel. Their expertise counts. What if they leave? What if they join the competition?

Incentivize your key executives with the opportunity to protect their

families, their futures, and your company’s bottom line.

Pacific Indexed Accumulator 5 is an indexed universal life insurance

product from Pacific Life Insurance Company. It can help provide your

key executives with financial protection for their families through policy

proceeds if the executives die too soon.

Along with financial protection, your key executives can also build cash

value potential to help supplement their retirement income.

Policy form #P15IUL, S15PIA5 or ICC15 P15IUL, ICC15 S15PAI5, based

on state of policy issue.

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Premiums, Charges, and Current Rates

POLICY PREMIUMS: Premiums are flexible. Policy-

owners choose the payment amount and timing. As

long as the policy’s cash value is sufficient to pay

ongoing policy charges, the policy will stay in force.

Indexed universal life insurance generally requires

additional premiums after the initial payment. If either

no premiums are paid or subsequent premiums are

insufficient to continue coverage, it is possible the

coverage will expire.

POLICY CHARGES: The cost of 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 premi-

um load is deducted from each premium payment.

To understand how policy charges affect the policy’s

cash value, request a personalized illustration that

includes an Analysis of Charges. Policy charges will

reduce the policy’s effective rate of return.

POLICY SURRENDER CHARGES: If the policy

is surrendered within the first 10 policy years, a

surrender charge will apply. A surrender charge will

reduce the policy’s cash value payable at policy

surrender.

POLICY FACE AMOUNT CHANGES: The face

amount may be increased or decreased, subject to

restrictions, which may impact policy charges and

surrender charges.

NON-GUARANTEED ELEMENTS: Non-guaranteed/

current elements are not guaranteed by definition.

As such, Pacific Life Insurance 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.

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BENEFIT YOUR EXECUTIVESWhen you run a successful business, every dollar counts. When you

need to incentivize key executives, it has to make sense to your

company’s bottom line.

Pacific Indexed Accumulator 5 is designed to offer high cash surrender values in the policy’s early years. Because the cash value may be counted as an asset, your business can leverage it to help offset the cost of offering life insurance coverage to your executives.

It can be a smart way to reward top talent in a cost-efficient manner.

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BUSINESS PLANNING STRATEGIES

COVER KEY EXECUTIVES + GAIN BUSINESS ASSETS

If your business loses a key executive, it may suffer financially. Reward top

talent using an endorsement split dollar arrangement to buy cash value

life insurance on key executives. As policyowner, your business pays the

premiums and generally retains access to the cash value as an asset.

Split dollar arrangements may be affected by the Sarbanes-Oxley Act of 2002,

which prohibits personal loans by public companies to directors and executive

officers. IRS regulations may impact the taxation.

OFFER RETIREMENT PLAN + OFFSET PLAN COSTS

For highly compensated executives, contribution limits on qualified plans

and Social Security benefits may mean retirement income shortfalls. Offer

executives supplemental retirement income potential using cash value life

insurance in a nonqualified deferred compensation plan.

The policy’s cash value can help informally fund the plan. As policyowner and

beneficiary, your business may use the policy’s proceeds when the insured

executive dies to help offset the cost of the plan.

Executives should be members of a select group of management or highly

compensated employees per Department of Labor Reg. Sec. 2520.104-23.

INCENTIVIZE EXECUTIVES + ADD A TAX DEDUCTION

In today’s competitive climate, how can your business stand out? Offer

bonuses to your executives in the form of premiums for cash value life

insurance the executive may own. The premiums are generally tax deductible

as a business expense.

The deductibility of the bonuses is subject to the reasonable compensation

limits established by IRC Sec. 162(a). Your employee benefits legal counsel

can tell you whether this is an employee benefit plan under the Employee

Retirement Income Act of 1974 and, if so, whether any additional requirements

are necessary.

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BUSINESS OWNER STRATEGIES

EXPAND YOUR BUSINESS

Along with incentivizing key employees, Pacific

Indexed Accumulator 5 may be used for other

business considerations. While the primary purpose

for buying life insurance is to pay policy proceeds to

the policy beneficiaries at the insured’s death, your

policy also has the potential to accumulate

cash value.

You may use your available cash value to expand

your business. Purchase a new building. Buy a more

optimal piece of land. Upgrade your technology

platform. Refurbish your equipment. Your cash value

is yours to use however you want.

OPTIMIZE YOUR ASSETS

As a business owner, you most likely review your

assets periodically. The same goes for your life

insurance coverage. If you own multiple policies or

are simply exchanging one cash value policy for

another, consider optimizing and/or consolidating

your coverage.

Pacific Indexed Accumulator 5 offers the potential for

higher early cash values, so you might retain more of

the cash value you’ve built up from an existing policy.

There are circumstances in which replacing your

existing life insurance can benefit you. As a general

rule, however, replacement is not in your best interest.

Your life insurance producer can provide you with

detailed information as to how a replacement may

affect your plan of insurance. You should make

a careful comparison of the costs and benefits,

including any applicable surrender charges, of your

existing policy and the proposed policy to determine

whether replacement is in your best interest.

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DIVERSIFY YOUR TAX LIABILITIES

If you’re a business owner with an eye toward

retirement, your financial portfolio is probably

well diversified across assets. But are your tax

liabilities? Consider the tax treatment of your assets

at distribution. Failure to diversify tax liabilities at

retirement can chip away your net retirement income.

With its tax-deferred growth potential and tax-free

distribution potential through policy loans and

withdrawals from the available cash value, a Pacific

Indexed Accumulator 5 policy can help provide a tax-

advantaged source of supplemental retirement income.

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; (3)

withdrawals taken during the first 15 policy years do

not 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. See IRC

Secs. 72, 7702(f)(7)(B), 7702A. Any policy withdrawals,

loans and loan interest will reduce policy values and

may reduce benefits.

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Zero FloatsWhat goes up must come down. Or does it?

Indexed universal life insurance is a form of cash value life insurance. What makes it

different is the way it credits interest to your policy’s cash value if you allocate among

the indexed accounts. Imagine the interest rate your policy credits as a buoy riding

along the waves of stock market movements.

Your policy’s buoy is anchored, meaning it can only float up to a certain point. This

maximum is called the growth cap and it limits your interest crediting rate on the upside.

Your interest rate is guaranteed to be no less than 0%. If the market drops, your cash

value stays where it was, reduced only by policy charges and any distributions you take,

such as withdrawals and policy loans.

With 0% guaranteed, your policy’s cash value is protected against market-based losses.

Indexed accounts do not directly participate in any stock or equity investments, but they

do credit an interest rate based in part on the movements of stock market indexes.

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THE POTENTIAL TO GROW

The cash value of a Pacific Indexed Accumulator 5 life insurance policy has the potential to accumulate and grow.

Each premium you pay, less a premium load, is applied to the policy’s

fixed account, where it will earn a current interest rate, less monthly

policy charges.

You may transfer your policy’s accumulated value from the fixed

account to any combination of available indexed accounts on the 15th

of each month. Each transfer into an indexed account creates a unit of

value called a segment. Any applicable interest is credited at the end

of each segment’s term, based in part on the performance of a major

stock market index, excluding dividends.

Talk to your life insurance producer about your financial goals and

the accounts that might match your and your business’ current

and long-term needs.

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Tax Considerations:

POLICY PROCEEDS: 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).

POLICY LOANS AND WITHDRAWALS: 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;

(3) withdrawals taken during the first 15 policy years

do not 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.

See IRC Sections 72, 7702(f)(7)(B), 7702A. Any policy

withdrawals, loans, and loan interest will reduce policy

values and may reduce benefits.

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POLICY PROCEEDS Your policy’s proceeds are paid tax-free to your policy beneficiaries

when you die. Along with replacing your income, the proceeds might

be used to pay off the family home, satisfy debts, provide for business

succession planning, and/or help ensure efficient estate transfer.

You have three choices for your policy’s payout structure:

A Level Death benefit equals the policy’s face amount.

B IncreasingDeath benefit equals the policy’s face amount,

plus the policy’s accumulated cash value.

C Return of Premium

Death benefit equals the policy’s face

amount plus the sum of premiums paid,

less any withdrawals.

How you structure your policy will affect its charges and surrender

charges, so work with your life insurance producer to build the coverage

that meets your needs or that of your business.

Accessing the Cash ValueAny available cash value accumulated in a Pacific Indexed Accumulator 5

policy may be accessed through policy loans and withdrawals tax-free.

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Financial Features

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 costs.

Ask your life insurance producer to provide you with

more details on the financial features available to

you through riders.

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.

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PACIFIC LIFE THE POWER TO HELP YOU SUCCEEDWhen it comes to choosing the company you will trust with the purchase

of your life insurance policy, consider their treatment of the policyowners

who have purchased before you. Pacific Life has a history of passing along

savings to our policyowners in the form of over 120 pricing improvements to

our inforce policies since 1985.

When you buy a policy from Pacific Life, you become a voting member in our

mutual holding company structure. We make decisions that benefit you and

the long-term financial strength of the company.

You matter to us.

Buying life insurance is a long-term commitment. The company you choose matters.

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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 Insurance CompanyNewport Beach, CA

(800) 800-7681 • www.PacificLife.com

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 and investment options 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