Versa-Flex NLGClient Brochure

Flexible Premium Adjustable Life Insurance

VFNLG-1C

Pacific Life Insurance Company

versa-flex nlg

As Your Life Changes, Your Life Insurance Policy Should Always Be There For You.What a difference a few years can make in your life. anything can change:

Having a baby

Buying a bigger house

Growing your business

Helping with a grandchild’s college tuition

Retiring early or semi-retiring

When changes alter your life, they also impact the amount and scope of your life

insurance needs. They can also affect your life insurance policy. This is why flexible

premium adjustable life insurance, commonly referred to as universal life, offers an

advantage.

Universal life lets you revise your policy – without surrendering or exchanging it –

to better meet new financial and life insurance needs as they arise. It can also provide

guarantees that your policy won’t lapse should its accumulated value not be sufficient

to pay monthly charges.

With Pacific Life’s universal life insurance product, Versa-Flex NLG (Policy Form

#P08VN1), these opportunities are yours, with so much more.

Investment and Insurance Products: Not a Deposit — Not FDIC Insured — Not Insured by any Federal Government Agency — No Bank Guarantee — May Lose Value

Pacific Life – the Power to Help You Succeed.

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as your legacy grows, a versa-flex nlg life insurance policy from Pacific life is with you at every turn. A Versa-Flex NLG policy’s versatility and flexibility combine to make it both practical and essential

to many financial strategies, such as:

G Death benefit protection for you and your heirs

G Guaranteed no-lapse protection with flexible durations of up to a lifetime

G Wealth transfer designs to help minimize estate taxes

G Cash accumulation to help supplement retirement income or pay for college

Learn more inside about how Versa-Flex NLG can work for you.

One Product — Many Uses

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Flexibility That Works For You — Inside Versa-Flex NLG

1 The No-Lapse Guarantee Value (NGV) is a value used only to determine if the no-lapse guarantee is in effect. It is calculated in a manner similar to the manner in which the accumulated value is calculated, but using different rates. NGV does not affect the policy’s cash sur-render value. A positive NGV will continue the death benefit coverage even if the accumulated value is zero. However, if the policy is being maintained solely by the no-lapse guarantee benefit, the policyowner will be foregoing the advantage of building accumulated value. A policy will enter the grace period if both the accumulated value and NGV (net of loans) reach zero. If no further (or insufficient) premium payments are made, the policy will lapse. To keep the policy from entering the grace period and eventually lapsing, an additional amount, representing the lesser of uncollected monthly deductions or the amount required to bring the net NGV to a positive value, must be paid.

versa-flex nlg’s flexibility is apparent before you make your first premium payment.Set Your Premiums You can set the amount of each premium payment based on your policy’s death benefit and your financial

objectives. Your no-lapse protection is secured by a net no-lapse guarantee value1 greater than zero. As long

as net no-lapse guarantee value stays positive, your premiums are flexible enough to meet your needs, with a

minimum planned premium payment of $50.

You can also choose your premium schedule. For example, you may request to have payment reminders sent to

you annually, semi-annually, quarterly, even monthly (provided your payments are made through direct transfer

from your checking account). You may be able to skip premiums altogether as long as you have sufficient cash

value to cover your monthly policy charges. Keep in mind, if no-lapse protection is of primary importance,

the easiest way to maintain a positive no-lapse guarantee value (and thereby maintain your illustrated no-lapse

guarantee duration) is to pay your planned premium on or before your policy monthiversary date.

Adjust Your CoverageYou can schedule increases or decrease your coverage without incurring administrative charges.

After your first anniversary (the first full year you own the policy), you may decrease your policy face amount

once per year within certain guidelines. A reduction in face amount will not necessarily result in a proportionate

reduction of all associated policy fees and charges.

To increase your face amount, you may select an optional rider to schedule annual increases up to certain limits

at the time you purchase your policy. This way, you can steadily add to your coverage without the need for

additional underwriting. Note that an increase may result in higher insurance charges. Talk with your insurance

professional to see how scheduled increases could work for you.

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2 Accumulated value is the net premiums (premium minus load) less cost of insurance and other charges accumulated at interest.

3 The maximum issue age for Death Benefit Option C is 80. The maximum Death Benefit calculated will not exceed the amount shown in the Policy Specifications as the “Option C Death Benefit Limit” except as described in the Death Benefit Qualification Test, Tax Qualification as Life Insurance, and Modified Endowment Contract Tax Status sections of the Policy unless a greater amount is necessary to satisfy the IRC Section 7702 Minimum Death Benefit requirements or to avoid classification as a Modified Endowment Contract under IRC Section 7702A without your consent.

4 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).

Death Benefit

Death Benefit

Death Benefit

Net Amountat Risk*

Time

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Time

Premium– Withdrawals

Amount

Accumulated Value

Net Amount at Risk*

Accumulated Value

Net Amount at Risk*

Accumulated Value

Option C

Death Benefit

Death Benefit

Death Benefit

Net Amountat Risk*

Time

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Time

Premium– Withdrawals

Amount

Accumulated Value

Net Amount at Risk*

Accumulated Value

Net Amount at Risk*

Accumulated Value

Option A

Death Benefit

Death Benefit

Death Benefit

Net Amountat Risk*

Time

Fa

ce

Am

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Premium– Withdrawals

Amount

Accumulated Value

Net Amount at Risk*

Accumulated Value

Net Amount at Risk*

Accumulated Value

Option B

With versa-flex nlg, you may choose one of three death benefit options, each of which is designed differently. Select Your Death Benefit Option

Option aOften called a “level” benefit, the death benefit proceeds from this option would equal

your policy’s face amount.

Option BKnown as an “increasing” death benefit, this option would equal your policy face

amount plus its accumulated value.2

Option CWith this “return of premium” option, your death benefit equals your policy face

amount plus all premiums you’ve paid, minus withdrawals you have taken from your

accumulated value.3

Choosing the death benefit option that’s right for you primarily depends on how your

policy fits into your larger financial strategy. Whichever death benefit option you use,

death benefit proceeds from a life insurance policy are generally paid federal income

tax-free to your beneficiaries.4

You can also change your choice of death benefit within certain guidelines, such as once

per year and only to Option A or Option B.

As you consider your wide range of choices and the overall flexibility offered within

Versa-Flex NLG, keep in mind that policy changes, such as switching death benefit

options or increasing face amount, may affect your monthly insurance charges and

require current evidence of insurability. Policy changes could also have tax consequences.

Please refer to your policy for more detailed information.

*Net Amount at Risk (NAR) is calculated based on the Death Benefit, an amount shown in the policy specifications and policy Accumulated Value. NAR helps to determine Cost of Insurance Charges.

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A Long-Term No Lapse Guaranteeversa-flex nlg’s flexible Duration no-lapse guarantee iii rider allows you to choose the no-lapse duration that’s right for you.

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Flexible Duration No-Lapse Guarantee III Rider (Form #R03FNL)5,6

Will your life insurance coverage still be there for you if your net accumulated value reaches zero?

The Flexible Duration No-Lapse Guarantee III Rider provides guaranteed no-lapse protection that

will keep your policy in-force – even if your accumulated value drops to zero! All you have to do

is choose how long you want your no-lapse protection to last. Up to a lifetime or for just a few

years, the rider allows you flexibility. As long as your net no-lapse guarantee value stays above

zero, your policy’s death benefit will be guaranteed.7

This rider covers your entire policy death benefit, including any Annual Renewable Term Rider

(Form #R08RTP)5 or Surrender Value Enhancement Rider–Individual (Form #R08SEI)5,8

coverage you may have. (See page 11 for descriptions of these riders.)

Changes in premiums, policy riders, death benefit, and face amount, as well as policy distributions,

may affect your no-lapse guarantee value and no-lapse guarantee duration.

Your No-Lapse Guarantee ValueYour no-lapse guarantee value is determined by a calculation, and is not an actual policy value.

In other words, it doesn’t affect your policy’s cash surrender value. Its sole purpose is to determine

if your rider’s no-lapse guarantee remains in effect.

5 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.

6 Subject to state availability. 7 If the policy is being maintained solely by the no-lapse guarantee benefit, you will be foregoing the advantage of building accumu-

lated value. A policy will enter the grace period if both the accumulated value and no-lapse guarantee value (net of loans) reach zero. If no further (or insufficient) premium payments are made, the policy will lapse. To keep the policy from entering the grace period and eventually lapsing, an additional amount, representing the lesser of uncollected monthly deductions or the amount required to bring the net no-lapse guarantee value to a positive value, must be paid.

8 In PA, this rider is titled Term Insurance Rider.

The flexible Duration no-lapse guarantee iii rider guarantees that your life insurance policy stays in force — even if your net accumulated value is zero. There is no required no-lapse guarantee premium. Each premium paid to your policy

will be added to the no-lapse guarantee value (after deduction for the no-lapse premium

load). You may pay any amount at any time (subject to certain tax limitations) as long

as the no-lapse guarantee value remains positive.

Withdrawals and loans are also permitted, although they may affect aspects of your

Flexible Duration No-Lapse Guarantee III Rider.

Rider CostA charge based on net amount at risk as well as an asset-based charge are deducted

monthly from the policy’s accumulated value.

EligibilityG Issue Ages 20–80

G Any Risk Class and Substandard Rating (excluding Unisex and Guaranteed Issue)

G Death Benefit Options A, B, and C

Ask An Insurance ProfessionalIf you’re unsure how no-lapse protection can benefit you or for how long you may need

it, your insurance professional can help. Working together, you can learn how short- and

long-term guarantees work to protect your death benefit and how the Flexible Duration

No-Lapse Guarantee III Rider impacts your policy’s net accumulated value over time.

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5This hypothetical chart illustrates that longer no-lapse guarantee

periods will require higher premiums.

You Choose Your No-Lapse Guarantee Duration

Exa

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f N

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apse

G

uara

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Dur

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Premiums

Lifetime

to Age 110

to Age 105

to Age 100

to Age 96

versa-flex nlg can build accumulated value, which you can use for income.Build Tax-Deferred Accumulated ValueWith Versa-Flex NLG, your policy can build accumulated value, which may help if you later need

to use some of it for income. Moreover, any accumulated value growth in your life insurance policy

is on a tax-deferred basis.

Your policy’s accumulated value is determined by three basic things:

G The sum of your premium payments, net of any premium load

G A reduction for policy charges, which are highlighted on page 13

G Interest credited to your policy

Understanding the Crediting RateEach year, your policy’s accumulated value will earn at least 3% — we guarantee it.

We may credit a higher rate from year to year. While the current rate your policy earns may vary, it will

never fall below a minimum guaranteed rate of 3%.

For policies issued on or after February 1, 2010, we may credit 0.60% above the current crediting rate

beginning in the 21st year, although this is not a guarantee.

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Access Your Policy’s Accumulated ValueVersa-Flex NLG gives you access to your policy’s accumulated value to meet financial needs such as supplementing

your retirement income. There are two ways to access your policy’s accumulated value, both of which are subject to

policy and IRS restrictions:

G Partial Withdrawals

G Policy Loans

Partial WithdrawalsA partial withdrawal is simply taking a portion of your policy’s accumulated value. Provided that enough

accumulated value remains in the policy to meet its monthly charges and other costs, your policy remains in force.

Policy LoansA loan lets you borrow money from your accumulated value while using your policy as collateral. The cost of the

loan is the difference between the interest rate we charge and the interest rate we credit to the amount of the loan

(see information below).

Keep in mind that withdrawals, loans and loan interest will reduce your policy’s accumulated value and may reduce

benefits. Withdrawals and loans also may affect aspects of your Flexible Duration No-Lapse Guarantee III Rider.

Before taking withdrawals or loans, talk with your insurance professional, who can provide an illustration to show

how distributions could impact your policy and your overall financial objectives.

Partial WithdrawalsG Available after first policy year

G $25 fee for each partial withdrawal (currently waived)

G Minimum amount: $200

G Required minimum net cash surrender value after withdrawal (cash surrender value less any policy debt): $500

Policy LoansG Minimum amount: $200 (in most states)

G Interest rate charged: 3.25%

G Interest rate credited: 3%9

G Net loan cost: 0.25%8

Automated Income Option (AIO)Transfer policy distributions to your bank on a steady basis

This convenient service takes distributions from your policy’s cash surrender value and deposits them directly

into your checking account. You can use AIO for any planned policy loans or partial withdrawals. With just your

written request, you can depend on a fixed payment, or an amount based on a fixed period of time, to be deposited

on a regular basis. Please note that there may be an administrative charge for this service and there are eligibility

requirements and exceptions.

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7 9 On a non-guaranteed basis, the credited loan interest becomes 3.25% in policy year 6+. Net loan cost in policy year 6+ would then be 0.00%. See your policy for complete details.

a versa-flex nlg policy offers many other built-in features to address specific needs.

Other Built-In Policy Features

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Guaranteed Cost of Insurance Rates The cost of insurance (COI) is one of several charges deducted from your policy’s

accumulated value each month. Versa-Flex NLG offers a guarantee that these rates

for base coverage and certain riders10 won’t increase above a certain amount for a

specific time period.

Specifically:

G There is a 5-year guarantee of current COI rates for the policy’s entire face

amount, including any additional insurance from selected riders.10 The period is

three years for issue ages 76 and older.

G For non-rated11 issue ages 60 and under, there is an option to extend the COI

guarantee to 10 years.

Policy ConversionWith the Conversion Rider (Form #R06CON),12 at any time during the 8th policy

year, you may convert to any other permanent life insurance policy that we make

available for such conversions.

The new policy is typically issued at the same risk class as the original policy.

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9 10 Refers to Surrender Value Enhancement Rider–Individual (Form #R08SEI). In PA, this rider is titled Term Insurance Rider.

11 Non-rated means no table rating and no flat extra charges. 12 Subject to state availability.

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.

More Options to Maximize VersatilityOther optional riders offered with versa-flex nlg provide additional insurance coverage and policy benefits.13 All riders are subject to state availability and, except for the Conversion Rider, additional charges.

Talk with your financial professional to learn which may be right for you.

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11 13 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.

14 The benefits of the Accelerated Living Benefit Rider are subject to state requirements, may be subject to taxation, and may impact Medicaid benefits. Some states may require a diagnosis of terminally ill with 24 months or less to live. Please consult your legal advisor for more information.

Accelerated Living Benefit Rider (Form #R06ALB)14 — Gives the policyowner

access to a portion of the death benefits if the insured is diagnosed as terminally ill with

12 months or less to live.

Accidental Death Benefit Rider (Form #R84-AD) — Pays an additional benefit if the

insured’s death is accidental, subject to certain exclusions.

Annual Renewable Term Rider (Form #R08RTP) — Adds term insurance coverage on

the primary insured to the Base policy. This coverage is renewable annually.

Annual Renewal Term Rider–Additional Insured (Form #R08RTA) — Provides term life

insurance coverage on any member of the primary insured’s immediate family (renewable

annually).

Children’s Term Rider (Form #R84-CT) — Provides term coverage on the lives of the

insured’s children.

Disability Benefit Rider (Form #R84-DB) — A monthly disability benefit allocated to

the policy’s accumulated value during the insured’s qualifying disability, but not beyond

age 65.

Guaranteed Insurability Rider (Form #R93-GI) — Provides the option to increase

face amount by purchasing a new life insurance policy without evidence of insurability

on the insured’s life at specified ages up to 40 years old.

Owner Waiver of Charges Rider (Form #R84-OWC) — Waives certain charges if

the policyowner (who is not the insured) becomes totally disabled before age 60.

Surrender Value Enhancement Rider–Individual (SVER) (Form #R08SEI) — An

insurance coverage that provides a death benefit and establishes higher early year cash sur-

render value relative to premiums paid, but generally less cash surrender value after the

10th policy year compared to base coverage only. In Pennsylvania, this rider is titled Term

Insurance Rider.

Waiver of Charges Rider (Form #R84-WC) — Waives certain charges in the event of

the total disability of the insured and following a 3-month qualifying period.

The flow chart tracks the premium flow of a versa-flex nlg Policy from your payment to cash surrender value.

Cash surrenDer value

inTeresT CreDiT

lOan aCCOunT

aCCumulaTeD value

WiThDraWal & surrenDer

Charges

mOnThly DeDuCTiOns15

PaiD Premium

Less Premium Load

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Premium Load (max guaranteed)

Administrative Charges

Cost of Insurance Charge

Coverage Charge Surrender Charge

6.95% per premium payment

$7.50/month through insured age 120.

a rate per $1,000 based on net amount at risk, age and risk class,

deducted monthly.

rates apply to each layer of coverage and

vary by issue age, gender, risk class, and death benefit option.

10-year Period

$100 each for risk reclassification. $25 per partial withdrawal.16

applied to all insurance coverage (base policy & any optional riders

selected).

applied to base policy and any optional sver

rider coverage.17

grades down to 0 through year 10

Policy Charges & Other Costs Please refer to your policy for more detailed information.

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13 15 Includes cost of insurance and $7.50 administrative charges, as well as coverage charges for base policy, Annual Renewable Term Rider and SVER coverages and any additional charges for other policy riders.

16 Currently waived. 17 As a guaranteed but not current assumption, coverage charges may also apply to ARTR coverage.

Pacific Life Insurance CompanyNewport Beach, CA 92660

(800) 800-7681 www.PacificLife.com

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. Product and rider guarantees are backed by the financial strength and claims-paying ability of Pacific Life Insurance Company.

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.

Pacific Life Insurance Company’s individual life insurance products are marketed exclusively through independent third-party 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 insurance professional can help you determine which optional riders are available and appropriate for you.

Insurance Professional’s Name

State Insurance License Number(or affix your business card)

Policy Form #P08VN1VFNLG-1C 15-28086-03 2/10

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.