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Objectives Introduce the new IUL product from Pacific Life Compare the new product to the competition Help you identify which clients are a good fit and where this product will do particularly well

On the Call Steve Schreiber Stoyan Petev Vice President of Advanced Designs spetev@firstheartland.com 636.695.2805 Steve Schreiber Assistant VP of Advanced Design sschreiber@firstheartland.com 636.695.2824

Agenda IUL/Industry Overview PDX’s Innovative Design Competitive Analysis Case Study Who are Prospects?

IUL Sales for Pacific Life Insurance Company, $ Millions of New Commissionable Premium

Annualized Premium (in $Millions) by Product (LIMRA Int’l Q4, 2009 – Q4, 2015)

Corporate Bond Yields, 1996-2015 (Single-A Moody’s portfolio)

PACIFIC DISCOVERY XELERATOR IUL (PDX) Death Benefit Protection, with Growth Potential

Competitive in a Low Interest Rate Environment New Performance Factor May Enhance the Indexed Interest Credits Not Dependent on High Growth Caps Competitive Performance When Comparing Same or Maximum Illustrated Rate Potential for High Accumulated Values Potential for Lower Premiums* on Death Benefit Illustration Solves

Target Premium Flexibility No-Lapse Guarantee Rider (Repriced, More Competitive) Benefit Distribution Rider Premier LTC Rider Chronic Illness Rider Overloan Protection Rider

Male 47 – Standard Non Smoker @ Max AG 49 Rate 1,200 monthly premiums for 20 years, min death benefit, option B to A change in year 21 Max distributions years 21+

Male 47 – Standard Non Smoker @ Max AG 49 Rate 1,200 monthly premiums for 20 years, min death benefit, option B to A change in year 21 Max distributions years 21+

Male 47 – Standard Non Smoker @ Max AG 49 Rate 1,200 monthly premiums for 20 years, min death benefit, option B to A change in year 21 Max distributions years 21+

Male 47 – Standard Non Smoker @ Max AG 49 Rate 1,200 monthly premiums for 20 years, min death benefit, option B to A change in year 21 Max distributions years 21+

Male 47 – Standard Non Smoker @ Max AG 49 Rate 1,200 monthly premiums for 20 years, min death benefit, option B to A change in year 21 Max distributions years 21+

Orion IUL VarLoan w/ IPFlex 426,654 10,376 $ 56,281.00 7.13% IUL Income Comparison Male, 51, 2nd Best Class, $25,000 per year over 15 years, Opt. B DB Switching to Level in Yr16, Max Income via Variable Loan Rates   Company Policy Death Benefit Target Prem Income Illus Rate AM Best Pacific Life PDX IUL w/ BDR 429,928 12,500 $ 72,015.00 6.17% A+ (2) PDX IUL $ 66,897.00 25,000 $ 64,854.00 $ 60,184.00 American General Max Accumulator+ 426,055 11,026 $ 56,821.00 7.40% A (3) Minnesota Life Orion IUL VarLoan w/ IPFlex 426,654 10,376 $ 56,281.00 7.13% Allianz Life LifePro+ 429,813 9,899 $ 56,112.00 7.00% North American Builder IUL8 418,599 10,197 $ 54,518.00 7.09% Orion IUL VarLoan $ 52,053.00 Lincoln Financial LifeReserve IUL Accum 381,053 11,012 $ 46,437.00 7.33% Orion IUL IdxLoan w/ IPFlex $ 45,249.00 Orion IUL IdxLoan $ 41,629.00 Always refer to carrier provided ledgers containing full plan details including information regarding both guaranteed and non-guaranteed elements. This is not a ledger nor state approved sales material. Although every effort was made to avoid them, inaccuracies may have occurred due to data input error.

Who are Your Best Prospects? Clients with Discretionary Dollars looking for: LIRP (with or without LTC) College Funding Alternatives Income Diversification Minimizing Sequence of Returns Companies looking for: NQDC, Mirror 401k Executive Bonus or Restricted Executive Bonus Loan Regime Split $, etc. Short Pay Designs with or without NLG