CLIENT BROCHURE

A WHOLE LIFE INSURANCE PRODUCT FROM PACIFIC LIFE INSURANCE COMPANY

Pacific Life Insurance Company

FX15-1C

Flex XV

Life insurance in your qualified plan can enhance an already meaningful

employee benefit.

Investment and Insurance Products: Not a Deposit Not Insured by any Federal Government Agency

Not FDIC Insured No Bank Guarantee May Lose Value

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LONG TERM PLANNING WITH FLEX XV

1. Life insurance pays proceeds to the policy beneficiaries at

the insured’s death. When used in qualified plans, it may

help attract, retain, and reward key employees.

2. Policy has fixed premiums that provide both

consistency and dependability.

3. May be part of certain qualified plans or

other financial strategies.

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A life insurance policy should be designed to respond to changing financial situations and objectives.

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Get More Out of Your Business for You & Your Employees

As a business owner, you know that success requires more than just focused leadership. It takes employees who share your drive for excellence.

That’s why you turn to financial strategies like offering a qualified retirement plan to attract, retain, and reward your employees.

When life insurance is used in a qualified plan:☐ Life insurance proceeds payable at the insured’s death can

offer meaningful financial protection for an insured-employee’s beneficiaries;

☐ A portion of the death benefit is generally excludable from the beneficiaries’ gross income for tax purposes;1 and

☐ Employers can provide significant retirement and survivor benefits for the employees and/or their heirs.

Keep in mind that qualified plans are complicated and are subject to specific rules and regulations. This brochure generally describes the use of whole life insurance as a funding vehicle for qualified plans and, in this context, outlines key features, services and other information about Flex XV (Policy Form #P08F15). Not all Flex XV features and services will apply to all plan types.

Contact your pension, tax and legal advisors, and your plan administrator for information specific to your situation.

1 For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Sec. 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 Sec. 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 Sec. 101(j).

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The primary purpose of a qualified plan is to provide retirement benefits. And, a qualified retirement plan is a permanent, rather than temporary, arrangement.

Situations can change, however, so a life insurance policy used to fund a qualified plan needs to be able to respond.

Flex XV’s built-in and optional features provide this versatility so the policy can respond to change.

Prior to making any changes, however, you should consult with your legal and pension advisors, including the plan’s administrator, to make sure the plan and law permit such changes.

If your plan’s cash flow situation changes, you can:☐ Change your billing frequency from annual to monthly, quarterly

or semi-annually; or☐ Change your premium amount or suspend premium payments

using the Extended Insurance Option (EI).2 However, you need to have sufficient Accumulated Value to keep the policy in force; and

☐ Reduce the death benefit3 as early as policy year 6 when on Extended Insurance Option status.

In Business, Life Brings ChangeAccess to policy values through withdrawals and loans is a product

feature of Flex XV, but qualified plans have limits.

It’s important, however, to consult your plan administrator to see if certain features would apply to your plan.

Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

2 If you elect the Extended Insurance Option, formal billing from Pacific Life stops.

3 The plan, together with its legal and pension advisors and plan administrator choose the amount of death benefit and the amount and frequency of planned premium payments. Because Pacific Life Insurance Company is neither the plan’s legal advisor nor plan administrator, it does not advise on the appropriate amounts of life insurance coverage or premium amounts for any particular plan.

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ADJUSTABLE PREMIUM SCHEDULEYou can choose your premium payment frequency and switch it, if necessary, to accommodate any changes in your financial situation.

For example, you may request to have payment reminders sent to you annually, semi-annually, quarterly, even monthly.

PREMIUM CHANGES THROUGH EXTENDED INSURANCEWith the Extended Insurance Option (EI), you can change your premium schedule – even skip a few payments.

As long as there is enough net Accumulated Value to fund monthly policy charges, EI lets you change or interrupt your scheduled premiums.

RIGHT TO EXCHANGE YOUR POLICYExchanging under this provision, as opposed to surrendering and purchasing another policy, waives premium loads and requires no new evidence of insurability, as long as the total face amount on the new policy doesn’t exceed the total face amount of the original Flex XV policy.

The new policy may be selected from products4 that Pacific Life Insurance Company makes available for this exchange.

If your needs change and you want to change the life insurance policy, you can use Flex XV’s exchange provision in the eighth policy year to get another Pacific Life Insurance Company policy without new evidence of insurability.

Flex XV’s versatile features and options are available to the policyowner, which is considered the plan itself, when life insurance is used to fund a qualified plan. However, if a participant purchases (or receives a distribution of) the Flex XV policy from the plan (i.e., they leave the company or retire), the same policy features and options would be available to these individuals. Keep in mind there are tax consequences related to the distribution of life insurance policies from qualified plans. Employers and participants should consult their tax advisors for more information.

4 At its sole discretion and at any time, Pacific Life may modify this list and policies may be added or deleted from the list.

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POLICY MATURITY Flex XV matures at the insured’s attained age 121.

WITHDRAWALS5 Basically, you may take withdrawals once per year beginning in the second policy year, if the policy is in force under the Extended Insurance Non-Forfeiture Option. The minimum amount is $500 and the maximum amount is Accumulated Value minus surrender charge and loan account, less $500. There is a $25 fee per withdrawal, which is currently waived.

POLICY LOANS5

As long as the policy is in force, you may take an unlimited number of loans each year (unless the policy is owned by a qualified plan). The minimum amount for each loan is $200. The maximum loanable value is the greater of:☐ Guaranteed Cash Value less policy debt, or;☐ Accumulated Value less:

■ 3 times the most recent monthly deduction;■ any surrender charge; and■ any existing policy debt.

Policy debt accrues interest daily at an annual rate of 3.25% in all policy years. The loan crediting rate is guaranteed to be 3% in all policy years, however, on a non-guaranteed basis, it is 3.25% starting in policy year 6 and thereafter.

5 Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

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Features and Riders

POLICY RIDERS6

These riders are either automatic or optional, depending on how you want to use your Flex XV policy.

Accelerated Living Benefit Rider7 (ALB) (Form #R92-ABR) – Available at issue, it provides access to a portion of the face amount if the insured is diagnosed as terminally ill with 6 months or fewer to live (May vary by state).

Maturity Extension Rider (Form #R06MER) – Available to be added to the policy only if requested after age 100. Extends the maturity date by 20 years.

Qualified Retirement Plan Rider (Form #R08QUA) – This is automatically included if the policy is in a qualified plan so that it can establish the required provisions needed to meet certain tax rules.

6 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.

7 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 1986. 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.

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FACE AMOUNT☐ Minimum face amount:

■ Standard Smoker and Standard NonSmoker: $50,000■ All Other Risk Classes: $100,000

☐ Option A (level) death benefit only

SURRENDER CHARGESFlex XV has a 6-year surrender charge period. The charges are level in policy years 1 and 2 and decrease monthly in years 3 to 6.

GUARANTEED INTEREST CREDITING RATE☐ 3% annually

PREMIUMSThe annual premium is based on the death benefit amount as well as the health, issue age and gender of the insured. Deducted from each premium payment is a premium load, which is 8.0% on a guaranteed basis. The current premium load consists of the following charges (on a non-guaranteed basis):

☐ Premium Load: A charge deducted from each premium payment. Current: 6.45%. If policy is owned in a qualified plan: 4.12%. Guaranteed maximum: 8%.

☐ If another Pacific Life Insurance Company policy is exchanged for a Flex XV policy, the premium load will be 4.5%; if held in a qualified plan 3%. Guaranteed maximum: 8%.

Net premium payments are credited to the accumulated value. The accumulated value is credited with interest (guaranteed minimum of 3% annually).

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 a Coverage Charge, Cost of Insurance Charge, and any applicable rider charges.

How Flex XV Works

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The Power To Help You Succeed

Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. Pacific Life counts more than half of the 100 largest U.S. companies as its clients. For additional company information, including current financial strength ratings, visit www.PacificLife.com.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count as of June 2016 is compiled by Pacific Life using the 2016 FORTUNE 500® list.

Pacific Life Insurance CompanyNewport Beach, CA 92660

(800) 800-7681

Visit us at our Web site: 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 this product is 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 of these 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.

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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 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.

The adoption of a qualified plan requires the services of a qualified plan administrator that administers the type of plan being considered. Pacific Life Insurance Company does not provide qualified plan administrative services.

The termination of a plan for any reason other than unforeseen business necessity during the first few years of its existence is considered an indication that the plan from its inception, was not a bona fide plan. Consult your plan administrator before considering changing or terminating your plan.