1. Pacific Life Insurance CompanyIs Your Clients Portfolio anUnfinished Work of Art?Color It with a Life Insurance Retirement Plan4/12MKT12-6For Life Insurance Producer Use Only. Not for Use with the Public.

2. Will There Be Enough?2/3 of investors between age 21 and 50 doubt theywill have ENOUGH MONEY FOR RETIREMENT*64% of Gen X and Gen Y investors expect that retirementincome will come FROM NON-RETIREMENT ACCOUNTS*1/3 of small-business owners do not have a PERSONALOR BUSINESS-SPONSORED RETIREMENT ***Gen X and Y Investors Worry Retirement Savings Wont Be Enough, Michael S. Fischer, AdvisorOne, March 9, 2012.**Many Small-Business owners arent prepared for Retirement, Laura Petrecca, USA Today, March 1, 2012.2 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 3. Aspiring to Financial Independence Client Portrait BusinessOwner Joe Mitchell Good SaverContributes yearly maximum to 401(k) plan &non-deductible IRAGoals: Save more for retirement and Balanced Approachprotect family while saving for retirement.3 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 4. 3 Financial ChallengesFinancial VulnerabilityOutliving Retirement AssetsRising Taxes 4 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 5. Is Your Client Using theRight Mix? ASSETS HELD INSIDEASSETS HELD OUTSIDETHE OVERLOOKED RETIREMENT PLANS RETIREMENT PLANS ASSETS Life Insurance Retirement Plan (LIRP) 401(K) StocksDeath Benefit* Pension Plan Mutual Funds Roth IRA Distributions Traditional IRA Real Estate Municipal BondInterestWhy failing to diversify tax liabilities at retirement couldpotentially hurt your clients retirement income*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 bepartially 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. thetransfer-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).5 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 6. Failing To Use Tax DiversificationASSETS HELD INSIDERETIREMENT PLANSWhat happens if Income TaxRates go up? $100,00035% Tax Rate* 50% Tax Rate* Withdrawal: $100,000$100,000 401(K) Pension PlanLess Taxes: -35,000 -50,000 Traditional IRA Net After Tax65,000 50,000 Withdrawal: Loss from Taxes:$15,000*Based on the Top Current Federal Income Tax Rate. 6 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 7. Failing To Use Tax DiversificationASSETS HELD OUTSIDE RETIREMENT PLANS What happens if Capital GainsTax Rates go up? $100,00015% Tax Rate* 50% Tax Rate* Taxable $100,000$100,000 Amount: Stocks Mutual Funds Less Taxes: -15,000 -50,000 Real Estate Net After Tax85,000 50,000 Withdrawal: Loss from Taxes:$35,000*Based on the Top Current Federal Income Tax Rate. 7 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 8. Failing To Use Tax Diversification THE OVERLOOKED ASSETSWhat happens if Income TaxRates go up?$100,000 35% Tax Rate** 50% Tax Rate** Life Insurance Retirement Plan (LIRP) Withdrawal:$100,000 $100,000 Death Benefit* Roth IRA DistributionsLess Taxes: -0 -0 Municipal BondInterestNet After Tax 100,000100,000Withdrawal:Has your client Loss from Taxes:Overlooked this bucket? $0* 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 deathbenefits 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 underIRC 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 policyqualifies for an exception under IRC Sec. 101(j).8 of 21**Based on the Top Current Federal Income Tax Rate.For Life Insurance Producer Use Only. Not for Use with the Public. 9. Characteristics of a LIRPPLUS:Premium Flexibility & Potential CreditorMoreTax Financial Protection***Retirement Advantages Security Tax-FreeAssets Tax-FreeDistributions*Death Benefit** Tax-Deferred Accumulation*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 notoccur 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 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest willreduce policy values and may reduce benefits.** 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 aninsurable interest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j).***State law may provide life insurance and annuities with certain asset protection benefits. As a general rule, a debtor may not transfer property with the intent to avoid debt due to his creditors. The lawsgoverning asset protection, however, are complex and the consequences of poor planning may be both civil and criminal penalties. Anyone contemplating an asset protection plan should not undertake such without the 9 of 21advice of legal counsel. For Life Insurance Producer Use Only. Not for Use with the Public. 10. Framing the Details of LIRP*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) withdrawalstaken 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. SeeIRC Secs. 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. 10 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 11. Personalize the Proposal NEW Navigator Presentation Format11 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 12. Coordinate the Timingof Policy Distributions with Other Retirement SourcesQualified Plans & IRAsLife Insurance Retirement Plan Maximum Age to Defer70 1/2None Distributions Subject MinimumYes No Distribution Requirements Death Benefit ProceedsGenerally subject to Income tax-free* income taxes* Life insurance may be a more attractive asset to die with than a Qualified Plan or IRA.*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 maybe 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). 12 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 13. LEVEL PREMIUM:$42,896 Annual Premium to Age 65Total Premiums Paid: $986,618 What Joes Beneficiaries PotentiallyWhat Joe Potentially Could Receive Could ReceiveIllustrated NetIllustrated HypotheticalDeath Benefit*DistributionsAssumes InsuredsAssumes Insureds Age 65Death At Retirement AtAge 42$1,037,273 Distribution Amount: $163,860Age 65 $2,873,264Years Payable: 25Age 85$816,477 Total Distributions: $4,096,500Assumptions: Male, age 42, Super Preferred Nonsmoker. Pacific Life Insurance Companys indexed universal life insurance product Pacific Prime IUL, Policy Form #P11P1I or ICC11 P11P1I - Formnumber based on state in which policy is issued, current policy charges, assumed indexed crediting rate 7.0%. Initial Face Amount: $1,000,000). Increasing death benefit option policy years 1 23 and levelthereafter. Initial Face Amount: $1,000,000. Increasing death benefit option policy years 1 23 and level thereafter.*Net Death Benefit is the death benefit payable to the designated beneficiary after withdrawals and any outstanding policy loans are paid off.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 helpshow the riders impact on the policys values. 13 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 14. BENEFITS OF WAITING3 OPTIONS for theLife Insurance Retirement Plan Pacific Prime IUL Illustrated Distributions* at AInsureds BInsureds C Insureds Age 70 withAge 65 Age 702% Annual IncreaseAnnual Distributions$163,860 $228,653 Initially: $190,760Amounts:Age 75: 210,614Age 80: 232,535 40% increase in total amount Age 85: 256,738 from age 65Years Payable: 25 25 25Total Distributions:$4,096,500 $5,716,325$6,110,088Assumptions: Male, age 42, Super Preferred Nonsmoker. Pacific Life Insurance Companys indexed universal life insurance product Pacific Prime IUL, current policy charges, indexed interest crediting rate 7.0%.Initial Face Amount: $1,000,000. Increasing death benefit option policy years 1 23 and level thereafter.*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 thefirst 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 7702(f)(7)(B),7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. 14 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 15. By failing to prepare, you arepreparing to fail. --Benjamin Franklin 15 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 16. Looking ahead 16 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 17. Start NOWMore Flexibility In the Future START ASSESSACCESSLEAVEAges: 35 - 48 LTC Need Ages: 50-55In Retirement A Legacy Life InsuranceUse LIRP toDeath Benefit (less Death Benefit supplement withdrawals/policy PROTECTION +income for loans) PAID INCOME Tax-deferredINFLATION, TAX-FREE3 to the GROWTH of CashLONGEVITY, orbeneficiary DEFEND Value RETIREMENTBOTH with Asset-based INCOME TAX-Policy Asset- Withdrawal or Long-Term CareFREE2 Distributions based Loan1 (LTC) InsuranceLTC Insurance Life Insurance Life InsuranceRetirement PlanRetirement Plan1Distributions from a life insurance to purchase another life insurance policy is considered a replacement of the current life insurance policy under state insurance laws. Any policy withdrawals, loans and loan interest will reduce policy values and mayreduce benefits. There are circumstances in which replacing your clients existing life insurance or annuity can benefit your client. As a general rule, however, replacement is not in your clients best interest. You should make a careful comparison of thecosts and benefits of your clients existing policy and the proposed policy to analyze how a replacement may affect your clients plan of insurance. You should provide this detailed information to your client and discuss whether replacement is in yourclients best interest.2Tax-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 thetime 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 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values andmay reduce benefits.3For 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. Situationsinclude, 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 insurableinterest based on state law; and an employer-owned policy unless the policy qualifies for an exception under IRC Sec. 101(j). Additionally, a portion of the Pacific PremierCares Death Proceeds may be income taxable if thepolicy was issued as part of an IRC Sec. 1035 income tax-free exchange. Clients should consult their independent tax advisor. 17 of 21Pacific PremierCare is a flexible premium adjustable life insurance policy with long term care insurance payable through reimbursements. For Life Insurance Producer Use Only. Not for Use with the Public. 18. Visualize the BIG Picture By Helping Your Clients Complete Their Retirement Picture18 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 19. The Art of Retirement Workbook Portraits to help you identifythe right clients Benefits of adding lifeinsurance as an asset to yourclients portfolios Step-by-step guide to theLife Insurance Retirement Plan19 of 21 For Life Insurance Producer Use Only. Not for Use with the Public. 20. Where Do I Start? Request the Art of Retirement Kit Visitwww.paintingretirement.com to order 20 of 21For Life Insurance Producer Use Only. Not for Use with the Public. 21. This material is not intended to be used, nor can it be used by anytaxpayer, for the purpose of avoiding U.S. federal, state or localtax penalties. This material is written to support the promotion ormarketing of the transaction(s) or matter(s) addressed by thismaterial. Pacific Life Insurance Company, its distributors and theirrespective representatives do not provide tax, accounting or legaladvice. Any taxpayer should seek advice based on the taxpayersparticular circumstances from an independent tax advisor.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 fixed subaccount crediting rates, are backed by the financial strength andclaims-paying ability of the issuing insurance company. Look to the strength of the life insurance company with regard to such guarantees as theseguarantees are not backed by the broker-dealer, insurance agency or their affiliates from which this product is purchased. Neither these entities nor theirrepresentatives make any representation or assurance regarding the claims-paying ability of the life insurance company.Pacific Life Insurance Companys individual life insurance products are marketed exclusively through independent third-party life insurance producers,which may include bank affiliated entities.Non-guaranteed elements are not guaranteed by definition. As such, Pacific Life Insurance Company reserves the right to change or modify any non-guaranteed element. This right to change non-guaranteed elements is not limited to a specific time or reason.Some independent third-party life insurance producers, which may include bank affiliated entities, may limit availability of some optional riders based ontheir clients age and other factors. Investment and Insurance Products: Not a Deposit Not FDIC Insured Not Insured by any Federal Government Agency No Bank Guarantee May Lose ValuePacific Life Insurance Company Newport Beach, CA (800) 800-7681 * www.PacificLife.com 21 of 21MKT12-6 For Life Insurance Producer Use Only. Not for Use with the Public.