For Life Insurance Producer Use O nly. Not for Use with the Public.

For Life Insurance Producer Use Only. Not for Use with the Public. March 2012PPC-25

DEFEND Retirement

Part of Living Well Is Planning Ahead

Pacific PremierCare*

Universal Life Insurance with Long-Term Care Benefits

*Pacific Life Insurance Company’s Pacific PremierCare (Policy Form #P11PPC or ICC11 P11PPC — policy form number based on state in which policy is issued) is a flexible premium adjustable life insurance policy with long-term care insurance payable through reimbursements. Pacific PremierCare is not a Partnership Qualified product. For more information on Partnership Qualified products, please contact your state department of insurance.

Pacific Life Insurance Company

For Life Insurance Producer Use Only. Not for Use with the Public.

The Perfect Storm

America’s health care concernsMad rush to retirement for baby boomersFluctuating economy and stock markets

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Consumer Mindset – Attain & Keep Independence As Long As Possible

Financial Independence

1st Time Walking to School Alone

Driver’s License

1st Apartment

Concern

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$82,000*

Average Annual Nursing Home Cost

$181,000*‡

Projected Average Annual Nursing

Home Cost

2010 2030

age 65+ will need some

type of long-term

care‡

* 2011 Sourcebook for Long-Term Care Insurance, American Association for Long-Term Care Insurance.† Based on average annual increase rate of 4.05% from 1994 to 2010.‡ U.S. Administration on Aging, Department of Health and Human Services, May 2010. 202-619-0724.

4.05% Average AnnualIncrease Rate in U.S.

Over 20 years*†

+120% Increase

Rising Costs of Long-Term Care

7Out of 10Americans

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Medicare Short-Term, won’t

cover most long-term care services

Medicaid Eligibility requires limited income and

resources

The Government Will Take Care of Me

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WHAT WOULD HAPPEN TO THEIR RETIREMENT ASSETS IF EXPENSES

SUDDENLY DOUBLED?

Regardless of how your clients plan to pay for long-term care….

6 of 25For Life Insurance Producer Use Only. Not for Use with the Public.


Buying Traditional Long-Term Care Insurance

Recurring premiums may not be

guaranteed and may increase later Never need long-term care -

premiums may be lost

Recurring premium payments = peace of mind

Increases funds available to help pay for long-term care expenses

Simple and makes sense

PROs:

CONs:

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Risk depleting

retirement assets

Maintain control of assetsNo premium paymentsLeave assets to heirs

PROs:

CONs:

Self-Insuring

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Pacific PremierCareA Better Option

Least Taxable* Least Earning Potential Most Liquid

Reposition a Portion ($100K):401(k)/

IRASavingsCashReal Estate

Stocks/BondsPension

$1,000,000 Keep Same Retirement Assets

*Those assets which will generate the least amount of tax when liquidated.

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$100,000(1-Time Premium Payment*)

INCREASE FUNDS Available for Long-Term Care with Pacific PremierCare

4 x Premium 6 x PremiumDay 1(Age 60)

Total Long-Term Care Benefits:**

$414,839Monthly Maximum Benefit:*** $5,360

Age 80Total Long-Term Care Benefits:**

$646,377Monthly Maximum Benefit:*** $8,575

*Only one premium is necessary to fund Pacific PremierCare. While this product allows additional premiums, they are not required and do not provide additional Long-Term Care Benefits, a greater Return of Premium Benefit, or increased Death Proceeds (unless a subsequent increase in the policy’s cash value requires a death benefit increase to satisfy IRC Section 7702 requirements). Once a sufficient premium has been paid, the long-term care coverage will continue as long as the insured lives; or until the policy is surrendered at the owner’s request; or until the maximum long-term care benefits have been paid; or until policy lapse. Policy charges (cost of insurance and coverage charges) are deducted from the policy’s accumulated value on a monthly basis. Policy lapse will only occur where the policy’s cash value less policy debt is not sufficient to cover monthly policy charges. Prior to lapse, the policy provides 61 days to pay premium sufficient to keep the policy in force. **Reimbursements for covered long-term care expenses are subject to an elimination period and are provided by the Accelerated Benefit Rider (ABR) for Long Term Care (Form #R11ABR or ICC11 R11ABR) and the Extended Benefit Rider (EBR) for Long Term Care (Form #R11EBR or ICC11 R11EBR). (Rider form numbers based on state in which policy is issued.) The amount and duration of the maximum long-term care benefits will be based on the benefit options elected at time of application. Coverage elected for longer than two years is only provided through a combination of ABR and EBR. Actual amount and duration of long-term care benefits are based on the use of policy benefits and features. Covered long-term care expenses will be reimbursed until the total long-term care benefits are exhausted, which may vary from the elected duration. Premiums for long-term care benefits will vary depending upon the benefit options elected. Charges for the ABR, EBR, and any Inflation Benefit Option are included in the initial premium payment. ***The monthly amount reimbursed is the cost of covered long-term care expenses actually incurred, which may be less than the Monthly Maximum Benefit. The Monthly Maximum Benefit may be pro-rated based on the actual number of days that the insured is chronically ill or confined to a facility. Hypothetical example only. Assumptions: Female, nonsmoking, married insured, issue age 60 with 6-year long-term care Benefit Period duration elected with 3% Simple Interest Inflation Benefit Option. Actual benefit amounts would be different, depending upon insured’s age, gender, couples discount, and smoking status. Policy Benefits are reduced by any policy loans, withdrawals, or terminal illness benefit paid under the policy. Death Proceeds and Return of Premium Benefit will be reduced when long-term care benefits are taken. Values assume no prior distributions of any kind taken. Age 80 benefits assume long-term care benefits begin at age 80.

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Pacific PremierCare Long-Term Care Benefits

Covered expenses are reimbursedTax-free* benefits 2–8 year benefit periods3 inflation benefit options0-day elimination period for in-home care

If long-term care is needed ...

*Pacific PremierCare is intended to provide federally tax-qualified long-term care insurance as defined in IRC Section 7702B(b). If there are any questions concerning the tax implications of this product, an attorney or qualified tax advisor should be consulted.Exclusions, Exceptions, and Limitations: We will not pay benefits for any room and board, care, treatment, services, equipment, or other items for care or services: 1) provided by the Insured’s Immediate Family unless he or she is a regular employee of an organization which is providing the treatment, service or care; and the organization receives the payment for the treatment, service or care; 2) for which no charge is normally made in the absence of insurance; 3) provided outside the United States of America, except as described in the International Benefit; 4) that result from an attempt at suicide (while sane or insane) or an intentionally self-inflicted injury; 5) provided in a government facility (unless otherwise required by law); 6) for which benefits are available under Medicare or other governmental program (except Medicaid), any state or federal workers’ compensation, employer’s liability or occupational disease law, or any motor vehicle no-fault law. No benefits will be paid for services received while the Accelerated Benefit Rider (ABR) for Long Term Care and the Extended Benefit Rider (EBR) for Long Term Care are not in force. Policy benefits are reduced by any policy loans, withdrawals or terminal illness benefit paid under the policy. Death Proceeds and Return of Premium Benefit will be reduced when long-term care benefits are taken.

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*Pacific PremierCare requires a larger up-front premium than traditional Long-Term Care insurance. However, if the overall goal is to retain control of assets while protecting against the financial impact of long-term care costs on retirement savings, Pacific PremierCare can help your client do more.**Policy benefits are reduced by any policy loans, withdrawals or Terminal Illness Benefit paid under the policy. Death Proceeds and Return of Premium Benefit will be reduced when long-term care benefits are taken. ***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). Additionally, a portion of the Pacific PremierCare’s Death Proceeds may be income taxable if the policy was issued as part of an IRC Sec. 1035 income tax-free exchange. Clients should consult their independent tax advisor.

Money back option — Return of Premium Benefit**

Tax-free*** death proceeds**

Pacific PremierCare Retain Control of Assets*If long-term care is NEVER needed ...

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Couples Discount* Lower premium for married

policyowners or couples in state-sanctioned civil unions or in

domestic partnerships

International Benefit** Nursing home care outside U.S.

*Discounted premiums for policyowners who are married or in state-sanctioned civil unions or domestic partnerships. Does not require the purchase of the policy by both parties. The Couples Discount is not available in Montana. Individuals in Montana may be eligible for a Household Discount based on their existing living arrangements.**International Benefits (for nursing home care received outside the United States only) are not limited to the cost of care and are paid at a rate equal to the monthly maximum long-term care benefit for up to 24 months. No other long-term care benefits are payable in a month in which International Benefits are payable.

Pacific PremierCare Additional Benefits

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Assess long-term care benefits Help find qualified care Develop plan of covered care Reassess long-term care needs Monitor delivery of services

Pacific PremierCare More than Protection, Care Coordination

Care Coordination Services*

Offered at No Additional Charge

*Benefits paid out for Care Coordination (excluding Pacific Life’s Care Coordination Services) will reduce the total long-term care benefits available and are subject to the maximum monthly benefit amount.

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Minutes to Apply, Decision in About a Week

Phone Interview30 – 45 Minutes

Insurance Applicant

Interviewer

Application Processed

Pacific PremierCare is subject to underwriting and approval of the application. No medical exam is required, but a Medical Information Bureau (MIB) and prescription report will be ordered and a Personal History Interview and Cognitive Assessment will be performed via telephone as part of the underwriting process.

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Technology & SupportDo What You Need To Do, Easier

QuoteCompareApply


Pacific PremierCare’s Benefit Quote

•1-Screen Entry•Basic Client Info•Couples Discount


Compare Benefit Periods & Inflation Benefits

• Compare by sorting columns. • Filter to narrow down results.


Get Quote

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•Review quote• Submit ticket



From Quote to

Quote Data exports over to EZ Apply

Required inputs for an “in good order” submission are highlighted

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Case Detail Screen

No need to page through unneeded forms!EZ Apply uses the responses to determine if additional responses are needed.

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Signature Options

3 Signature Options to fit your needs

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Pacific PremierCareGet MORE Out of Life

• Universal Life Insurance with Long-Term Care Benefits

• Long-Term Care Benefits when Needed Most

• 3% Simple, 5% Simple, 5% Compound Inflation Benefits, or No Inflation Benefit Chosen

• Liberally Defined Couples Discount

• International Care

• Streamlined Underwriting Process

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401(k)/IRASavingsCashReal

Estate

Stocks/Bonds

Other Assets

Pacific PremierCareProtect

RetirementAssets

1 PremiumIs All It Takes

RetainControl

Increase Funds for Long-Term

Care

DEFENDRetirement


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 Insurance Company, its distributors and their 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. 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 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’s 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 on their client’s 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 Value

PPC-25

Newport Beach, CA(800) 800-7681 * www.PacificLife.com

Pacific Life Insurance Company


For Life Insurance Producer Use O nly. Not for Use with the Public.

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Transcript of For Life Insurance Producer Use O nly. Not for Use with the Public.