PRS II Lite Recruiter 5-28 AW 2

Why an Indexed Universal Life Insurance Policy? : 

Why an Indexed Universal Life Insurance Policy? Indexed Universal Life Insurance (IUL) is a funding vehicle that can be used to supplement retirement income. IUL offers the following features: Death Benefit Protection Flexible Premiums Long-Term Growth Potential Earn interest based, in part, upon the return of the S&P 500, excluding dividends. Principal will not decrease due solely to market declines. Liquidity Tax Features1 IRC Sec. 72(e)(1) Potentially tax-free accumulation IRC Sec. 72 (e)(5)(c) Potentially tax-free income2 IRC Sec. 101(a)(1) Potentially tax-free death benefit3 No Required Minimum Distribution 1 Assumes the life insurance policy is not owned by a Qualified Plan. 2 See page 21 for Tax Information. 3 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). For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 1 of 21

Growth and the S&P 500:Taking the Long View…Far More Ups than Downs : 

Growth and the S&P 500:Taking the Long View…Far More Ups than Downs Source: Yahoo Finance GSPC Historical Prices, data gathered as of 1/04/10. The chart below shows how the S&P 500®, excluding dividends, has performed over the last 30 years. You can see that only seven years have had negative growth. Does investing in the S&P 500, excluding dividends, provide consistent, attainable growth rates? For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 2 of 21

Risk Protection and Effective Yield : 

Risk Protection and Effective Yield Source: Yahoo Finance GSPC Historical Prices, data gathered as of 1/04/10. The historical performance of the S&P 500 is not intended as an indication of its future performance and is not guaranteed. This graph is only intended to demonstrate how the S&P 500 , excluding dividends, would be impacted by a hypothetical growth cap of 12% and hypothetical growth floor of 0%, and is not a prediction of how any indexed universal life insurance product might have operated had it existed over the period depicted above. The actual historical growth cap and growth floor of an indexed universal life insurance product existing over the period depicted above may have been higher or lower than assumed, and likely would have fluctuated subject to product guarantees. This graph does not reflect the impact of life insurance policy charges. If you expect consistent, attainable growth rates by investing in the S&P 500, excluding dividends, consider what happens if the S&P 500, excluding dividends, has a growth floor of 0% and a growth cap of 12%. Using the value of compound interest, you can see that the risk protection provided by the 0% floor results in an effective yield that is almost 90% higher than the S&P 500, excluding dividends, without the growth cap and growth floor. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 3 of 21

Why Pacific Indexed Accumulator III1 (PIA III)? : 

Why Pacific Indexed Accumulator III1 (PIA III)? Limitedexposure of the policy cash values to market volatility Potentiallyhigherpolicy cash surrender value in the early years of the policy2 PotentiallyTax-free income3 One General Account: Fixed Account: 5.35% current interest crediting and 2% guaranteed crediting rate Three Indexed Accounts based, in part, on the performance of the S&P 500 (excluding dividends) 1-Year Indexed Account4: 0% Guaranteed Interest Rate. Growth Cap is currently 12% with a guaranteed Growth Cap of 3%. 100% Participation Rate 5-Year Indexed Account: 1% Guaranteed Interest Rate. No current Growth Cap with a guaranteed Growth Cap of 3%. 100% Participation Rate High Par 5-Year Indexed Account4: 0% Guaranteed Interest Rate. No current Growth Cap with a guaranteed Growth Cap of 3%. 110% current Participation Rate with a guaranteed Participation Rate of 105% 1 Indexed Universal Life Insurance Form Series (P08PI3). This policy does not directly participate in any stock or equity markets. 2 Provided by including the optional SVER Term Insurance Rider (form series R09SVERI).Riders will likely incur additional charges and are subject to state availability, restrictions and limitations. When considering a rider, request a policy illustration from your insurance professional to see the rider’s impact on your policy’s values. Also known as the Term Insurance Rider in some states. 3 See Slide 4 for Tax Information 4 In Pennsylvania, the 1-Year Indexed Account has a Segment Guaranteed Interest Rate of 1% and a current Growth Cap of 11% and the High Par 5-Year Indexed Account is not available. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 4 of 21

Slide 5: 

Life Insurance Assumptions Some policy elements (known as non-guaranteed elements) may be changed by Pacific Life Insurance Company at any time and for any reason, but cannot be less favorable to you than the policy’s guarantees. Some non-guaranteed elements are illustrated consistent with Pacific Life Insurance Company’s current scale, and are labeled as “current.” Values shown in this illustration are based on non-guaranteed policy charges and non-guaranteed crediting rates. Over time, the policy’s actual non-guaranteed elements, and perhaps your actual use of the policy’s options, are likely to vary from the assumptions used in this illustration. For these reasons, actual policy values will either be more or less favorable than shown in this illustration. This presentation is only valid when the complete Basic Illustration is attached. Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York. Product availability and features may vary by state. Pacific Life Insurance Company’s home office is located in Newport Beach, California. Riders will likely incur additional charges and are subject to state availability, restrictions and limitations. When considering a rider, request a policy illustration from your insurance professional to see the rider’s impact on your policy’s values. As with all uses of life insurance, the amount of life insurance coverage asked for in conjunction with this concept may be limited by Pacific Life Insurance Company’s financial underwriting guidelines.  Financial underwriting is an assessment of whether the proposed death benefit is a reasonable replacement for the financial loss caused by the death of the insured. Things to Consider When Purchasing Life Insurance Premiums are paid with after-tax dollars. Policy cash surrender values are reduced by policy and rider charges. Policy is impacted if the amount or timing of policy loans, withdrawals or premiums differ from what has been illustrated. Allowing the life insurance policy to lapse will cause adverse income tax consequences if withdrawals and policy loans exceed total premiums paid. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 5 of 21

Pacific Indexed Accumulator III’s Illustrated Values : 

Pacific Indexed Accumulator III’s Illustrated Values Here are the projected values of the PIA III life insurance policy. You can see the hypothetical tax-free distributions1 that a life insurance policy offers. The pre-tax equivalent of this amount is much higher. PIA III has a cash surrender value that can be accessed for emergencies and also has a death benefit for heirs. Keep in mind that accessing cash values differently than illustrated may have a negative impact on your Retirement Path Roadmap™. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 6 of 21

Slide 7: 

Retirement Path Roadmap ™ Meeting Your Retirement Goals You can see that combining income from tax-qualified plans and other retirement assets with PIA III’s potentially tax-free distributions1 can assist in meeting an inflation-adjusted retirement income goal. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 7 of 21

Script A: Call Current ClientGoal: Schedule Appointment to Show Sample Case : 

Script A: Call Current ClientGoal: Schedule Appointment to Show Sample Case Bob, I’ve been thinking about how the market has affected your retirement picture. I have something exciting to show you that may help you to meet your retirement income goals. I’ve prepared the preliminary modeling but it needs your input as well. So with that in mind, I’d like you to come to the office around 10:30 or so to work together on it, then we’ll have lunch at ______. How does Wednesday or Thursday look for you? For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 8 of 21

Script B: Call ProspectGoal: Schedule Appointment to Show Sample Case : 

Script B: Call ProspectGoal: Schedule Appointment to Show Sample Case Bob, many of us are concerned about the market’s severe impact on our pension, profit-sharing and 401k investments and how it impacts our future. I’d like to share with you a very exciting planning tool that is interactive and you will see an example of where you may stand on the path to being able to live the way you want to live for the rest of your life, even if the market repeats its 2008 performance. So with that in mind, I’d like to stop by the office next week. How does Wednesday or Thursday morning look? For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 9 of 21

Slide 10: 

Who are 3 perfect-fit clients, for whom we should build a Roadmap™? Would you like us to build one for you? For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 10 of 21

Tax Information : 

Tax Information Tax-Free Death Benefit: 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). Tax-Free Income: 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. 7702(f)(7)(B), 7702A.  Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. There may be taxes, fees, penalties, expenses, and/or losses associated with selling assets. The limit of $49,000 (in 2010, indexed for inflation) on total annual contributions to a defined contribution plan assumes that the employee/individual does not contribute or defer (a) any annual $[5,500] catch-up amounts (for participants of a 401(k) profit-sharing plan who are age 50 and over) in addition to the maximum employee deferral amount of $16,500/year (in 2010) to the defined contribution plan, (b) any amounts to a defined benefit plan, or (c) any amounts to an Individual Retirement Account (IRA), whether tax-deductible or not tax-deductible, which depends on (1) whether the individual and/or his or her spouse is covered by an employer’s retirement plan and (2) the level of the individual’s or couple’s modified Adjusted Gross Income (modified AGI). See IRC Secs. 415(c)(1)(A) and 414(v)(2)(B)(i). Allowing the life insurance policy illustrated here to lapse will cause adverse income tax consequences if withdrawals and loans exceed total premiums paid. For insurance professional use only. Not for use with the public. © PRS, LLC 2010 All Rights Reserved 11 of 21