For Broker-Dealer Use Only. Not For Use With The Public. Advanced Understanding of Variable Universal Life (VUL) Insurance Pacific Life Insurance Company’s VUL Product Suite John Church Product Marketing Specialist Product Marketing Pacific Life Insurance Company 16-137 For Broker-Dealer Use Only. Not For Use With The Public.

Pacific Life Insurance Company Newport Beach, CA (800) 800-7681 www Pacific Life Insurance Company Newport Beach, CA (800) 800-7681 www.PacificLife.com 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 crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company but they do not protect the value of the variable investment options. 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 products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the life insurance company. Variable insurance products issued by Pacific Life are distributed by Pacific Select Distributors LLC (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third party broker-dealers. Pacific Life insurance Company’s individual life insurance products are marketed exclusively through independent life insurance producers, which may include bank affiliated entities. Some independent third-party life insurance producers, which may include bank affiliated entities, may limit availability of some optional riders or variable investment options based on their client’s age and other factors. Check with your firm or your Pacific Life Insurance Company representative to confirm which optional riders are available for sale. Non-guaranteed/current elements are not guaranteed by definition. As such, Pacific Life Insurance Company reserves the right to change or modify any of these elements. This right to change non-guaranteed elements is not limited to a specific time or reason. Clients should carefully consider a variable life insurance product's risks, charges, limitations and expenses, as well as the risks, charges, expenses, and investment goals/objectives of the underlying investment options. This and other information about Pacific Life Insurance Company are provided in the applicable product and underlying fund prospectuses. These prospectuses should be read carefully by clients before investing or sending money. Investment and Insurance Products: Not a Deposit Not Insured by any Federal Government Agency Not FDIC Insured No Bank Guarantee May Lose Value

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, its affiliates, their distributors and 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 or attorney. Variable Universal Life Insurance generally requires additional premium payments after the initial premium. If either no premium are paid, or subsequent premiums are insufficient to continue coverage, it is possible that coverage will expire. Riders will likely incur additional charges and are subject to availability, restrictions and limitations. Clients should be shown policy illustrations with and without the rider’s impact on the policy’s values. American General, AXA, ING, John Hancock, Lincoln, MetLife, Minnesota Life, Nationwide, Penn Mutual, Principal, Protective, Prudential, TIAA-Cref (TC LIFE), VOYA, American Funds, BlackRock, GE Investments, PIMCO, American Century, Lord Abbett, Eaton Vance, Ashmore, and J.P. Morgan are not affiliated with Pacific Life Insurance Company and Pacific Select Distributors LLC. The indexed accounts in the variable universal life products do not directly participate in any stock or equity investments. 1 Assumptions for slides 19-22: Pacific Select VUL A (PSVUL A) Policy Form Number Policy Form No. P15PVA, ICC15 P15PVA Form Number based on state of policy issue. Issued by Pacific Life Insurance Company. Male 45 Best Non Smoker, $25K annual premium payment policy years 1-20, Minimum Non-Modified Endowment Contract Death Benefit, Increasing switching to Level in year 21 Level Death benefit, 20 years of monthly policy distributions starting in policy year 26, withdrawals until basis then loans, solving for cash surrender value of $1K at Age 120. Term Product used is Minnesota Life Advantage Elite Select 20 w/ECA – Policy From Number ICC12-400 2 For AXA, Banner/William Penn, Transamerica and VOYA - http://insurancenewsnet.com/innarticle/life-carriers-imposing-huge-rate-hikes-on-some-policyholders For Lincoln - https://blog.itm21st.com/2016/05/10/another-major-carrier-raising-cost-of-insurance-charges/ For Genworth and Prudential PLC - http://www.lisa.org/life-policy-owners/consumer-news/2015/11/17/more-life-carriers-raise-rates-on-older-blocks-of-business All Information was obtained as of June 2016.

*Company and products used for comparison on slide 23 Variable Life Insurance Product Policy Form Number Pacific Life Insurance Company Pacific Prime VUL P11P1V, ICC11 P11P1V$ Pacific Select VUL P12VUL, ICC12 P12VUL$ Pacific Select VUL – Accumulation P15PVA, P15PVA SP or ICC15 P15PVA, ICC15 P15PVA SP$ American General Income Advantage Select 08704 AXA Incentive Life Optimizer II 08-ICC 10-11 ING VUL CV 2517 (VUL) 03/08 John Hancock Accumulation VUL 09 09ACCVUL Lincoln AssetEdge VUL 2009 LN698 MetLife Equity Advantage VUL 5E-34-07 Minnesota Life Accumulator VUL 07-660 Nationwide YourLife Accumulation VUL NWLA-440-AO Penn Mutual Diversified Growth VUL VU-08(S) Principal VUL Income III SN56 Protective Premier III VUL VUL-12 06-08 Prudential PruLife Custom Premier II VULU-2008 Transamerica Journey VUL VL23 $Form Number based on state of policy issue. * Disclosure for slide 23 - A 0% growth assumption is not illustrated, because all policies compared with this rate of return would not build sufficient cash value to keep it in force and, therefore, all policies would lapse. Many life insurance product have some flexibility in how they are structured. For example, death benefit coverage under certain products may be provided through a combination of the base policy and any available term or other riders. Each policy selected, illustrated, and sold should be structured based on your client’s needs and financial objectives. It is your responsibility to know that the particular policy selected, illustrated, and sold will meet your client’s needs and objectives. Values shown are based on data from all companies as of June 2016. Competitor information presented based on illustrations. While we believe that it is accurate, we cannot assure you that this is the most current information. Please contact the company for a current illustration and prospectus of its product. Underwriting criteria will differ from company to company; we attempted to use comparable risk classes across all companies. Various aspects of products, including but not limited to features, benefits, expenses, loads and charges, will vary from company to company and will impact the values shown. Products are not identical, and the product’s specific features and the client’s use of those features will impact long term policy performance. Values for all policies may contain guaranteed and non-guaranteed elements, including but not limited to current interest rate and current cost of insurance rates. This is not an estimate of future performance. Companies use different methods in determining current non-guaranteed elements and there will be variations in their values and meanings.

*Company and products used for comparison on slide 24 Variable Life Insurance Product Policy Form Number Pacific Life Insurance Company Pacific Select Survivorship VUL P13SVL or ICC13 P13SVL@ AXA Survivorship Incentive Life 08-100 ING ING SVUL-CV 2519 JTVUL – 12/08 John Hancock Accumulation SVUL 07SVUL Protection SVUL Lincoln Finanical Preservation Edge SVUL LN699 Lincoln Financial SVUL One 2013 LN697 Nationwide YourLife Survivorship VUL NWLA-380-AO Penn Mutual Survivorship Growth VUL VALJ-01S, VALJ-01U@ @Form Number based on state of policy issue. * Disclosure for slide 24 - A 0% growth assumption is not illustrated, because all policies compared with this rate of return would not build sufficient cash value to keep it in force and, therefore, all policies would lapse. Many life insurance product have some flexibility in how they are structured. For example, death benefit coverage under certain products may be provided through a combination of the base policy and any available term or other riders. Each policy selected, illustrated, and sold should be structured based on your client’s needs and financial objectives. It is your responsibility to know that the particular policy selected, illustrated, and sold will meet your client’s needs and objectives.. Values shown are based on data from all companies as of June 2016. Competitor information presented based on illustrations. While we believe that it is accurate, we cannot assure you that this is the most current information. Please contact the company for a current illustration and prospectus of its product. Underwriting criteria will differ from company to company; we attempted to use comparable risk classes across all companies. Various aspects of products, including but not limited to features, benefits, expenses, loads and charges, will vary from company to company and will impact the values shown. Products are not identical, and the product’s specific features and the client’s use of those features will impact long term policy performance. Values for all policies may contain guaranteed and non-guaranteed elements, including but not limited to current interest rate and current cost of insurance rates. This is not an estimate of future performance. Companies use different methods in determining current non-guaranteed elements and there will be variations in their values and meanings.

For Broker-Dealer Use Only. Not For Use With The Public. Agenda Industry Pacific Life Insurance Company Why Doesn’t Our Industry sell more VUL? Sales Rate of Return Probabilities Actuarial Guideline 49 (AG 49) and it’s Impact on our Industry Sequence of Returns Discussion Is VUL is too expensive? What You Need to Know Pacific Life’s Competitive Position Pacific Life’s Policy Administration Our Policyowners are important to us Competition 6 of 31 For Broker-Dealer Use Only. Not For Use With The Public.

Industry Market Share by Product Type 4th Quarter 2015 (in millions) Source: LIMRA Confidential Sales Survey, 4th Quarter 2015, Ranked by Planned Recurring Premium for 80 participating companies. For the example above all values have been rounded to the nearest million.

Breaking Down VUL Sales Fourth Quarter Results 2015 New Planned Recurring Premium ($MM) 2015 Market Share Company A $194 21.2% Pacific Life Insurance Company $106 11.6% Company B $79 8.7% Company C $77 8.4% Company D $67 7.3% Company E $66 7.2% Company F $61 6.7% Company G $42 4.6% Company H $38 4.2% Company I $36 4.0% TOTAL $919 Source: LIMRA Confidential Sales Survey, 4th Quarter 2015, Ranked by Planned Recurring Premium for 80 participating companies. For the example above all values have been rounded to the nearest million.

Why Doesn’t our industry sell more VUL?

Why Doesn’t our industry sell more VUL? Incentive Trips?

Incentive Trips? Broker Dealers? Why Doesn’t our industry sell more VUL? Incentive Trips? Broker Dealers?

Incentive Trips? Broker Dealers? I Love IUL! Why Doesn’t our industry sell more VUL? Incentive Trips? Broker Dealers? I Love IUL!

Help Manage Market Volatility Using the 1-Year Indexed Option* Source: Morningstar Direct March 2016 * Past performance neither guarantees nor predicts future investment results. Actual Performance will fluctuate and values may be higher or lower than what is currently reflected. The performance shown does not include any policy fees and expenses. Performance net of policy fees and expenses would be significantly lower after all policy fees and expenses are deducted. The 1-Year Indexed Option historical segment rates are based on the current Growth Cap of 10%. The current Growth Caps for the 1-Year Indexed Option are affected by the current market environment, such as the life insurance company’s declared crediting rate and the cost of the options used to support the 1-Year Indexed Option Segment Rates. Had the 1-Year Indexed Option been available on 12/15/91 historical growth caps may have been higher or lower than what is depicted in the chart. The 1-Year Indexed Option enables your client’s to earn interest based in part on the performance of the S&P 500® Index (without dividends) subject to a 1% guaranteed minimum interest rate (floor) and a current 10% growth cap (3% guaranteed) (Standard & Poor’s® , S&P® and S&P 500® are registered trademarks of Standard and Poor’s Financial Services LLC and have been licensed for use by Pacific Life Insurance Company. The life insurance product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does makes no representation regarding the advisability of purchasing a life insurance contract). Funds allocated to the 1-Year Indexed Options are subject to a .30% annual charge, assessed monthly at .025%.

Probability of annual gain or loss over twenty year rolling periods, 1989-2015 Stocks are generally more volatile than fixed income and returns can vary greatly from year to year. Constructing a portfolio that includes equities and fixed income securities may help reduce volatility. Rate of return S&P 500® Barclays Bond Index 80% Equities 20% Bonds 60% Equities 40% Bonds 40% Equities 60% Bonds > 8% 64.7% 35.8% 62.1% 60.0% 53.1% > 7% 67.4% 44.0% 65.4% 63.0% 59.3% 0% - 7% 10.8% 49.5% 13.3% 17.5% 25.9% -7% - 0% 4.2% 6.5% 5.7% 9.4% 11.1% < -7% 17.6% 0.0% 15.6% 10.2% 3.8% Past Performance is no guarantee of future results. If you have questions about your equity and fixed income portfolio, consult your financial advisor. They can help you decide if any adjustments may be appropriate based on changes in your financial situation (including your risk tolerance, time horizon and investment objectives). Past Performance is no guarantee of future results. If you have questions about your equity and fixed income portfolio, consult your financial advisor. They can help you decide if any adjustments may be appropriate based on changes in your financial situation (including your risk tolerance, time horizon and investment objectives. Source: Morningstar for S&P 500® & Barclays Data May 2016 Standard & Poor’s® , S&P® and S&P 500® are registered trademarks of Standard and Poor’s Financial Services LLC and have been licensed for use by Pacific Life Insurance Company. The life insurance product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does makes no representation regarding the advisability of purchasing a life insurance contract.

Probability of gain or loss for 20 year holding periods, 1989-2015 Stocks are generally more volatile than fixed income and returns can vary greatly from year to year. Constructing a portfolio that includes equities and fixed income securities may help reduce volatility. Rate of return S&P 500® Barclays Bond Index 80% Equities 20% Bonds 60% Equities 40% Bonds 40% Equities 60% Bonds >8% 84.1% 0.0% 85.7% 68.5% 24.5% > 7% 99.6% 27.4% 100.0% 99.1% 0% - 7% 0.4% 72.6% 0.9% <0% Past Performance is no guarantee of future results. If you have questions about your equity and fixed income portfolio, consult your financial advisor. They can help you decide if any adjustments may be appropriate based on changes in your financial situation (including your risk tolerance, time horizon and investment objectives). Source: Morningstar for S&P 500® & Barclays Data May 2016 Standard & Poor’s® , S&P® and S&P 500® are registered trademarks of Standard and Poor’s Financial Services LLC and have been licensed for use by Pacific Life Insurance Company. The life insurance product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does makes no representation regarding the advisability of purchasing a life insurance contract.

Hypothetical example of illustrated rates when applying AG 49 ® ® ® ® ® ® ® Maximum IUL illustrated rate based on AG 49 formula subject to a cap and floor with no dividends Hypothetical illustrated rate based on AG 49 formula with unlimited cap , no floor and including dividends Source: Bloomberg for S&P 500® Data January 2016 Standard & Poor’s® , S&P® and S&P 500® are registered trademarks of Standard and Poor’s Financial Services LLC and have been licensed for use by Pacific Life Insurance Company. The life insurance product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s does makes no representation regarding the advisability of purchasing a life insurance contract.

Sequence of Returns Sample Average Rate used for sequencing (AG 49 equivalent for S&P® Total Return): 11.02% Total Number of Sequences: 7,054 47% Probability 83% Probability 95% Probability 100% Probability Consider using our 3 Interest Rates Template in Navigator Assumptions: Male 45 Best Non Smoker, $25K annual premium payment policy years 1-20, Minimum Non-Modified Endowment Contract Death Benefit, Increasing switching to Level in year 21 or Level Death Benefit, 20 years of monthly policy distributions starting in policy year 21, withdrawals until basis then loans, solving for $1 at Age 120. Various Weighted Average Non-Guaranteed Illustrated rates Probability is the number of times that the sequence of returns is equal to or greater than the level illustrated rate. 17 of 31 For Broker-Dealer Use Only. Not For Use With The Public.

Variable Universal Life (VUL) - Distribution Comparison Assumptions: Pacific Select VUL A* (PSVUL A) Male 40 Best Non Smoker, $25K annual premium payment policy years 1-25, Minimum Non-Modified Endowment Contract Death Benefit, Increasing switching to Level in year 25, 20 years of monthly policy distributions starting in policy year 26, withdrawals until basis then loans, solving for $1K at Age 120. Using Various Non-Guaranteed Illustrated rates based slides 16 and 17 *Policy Form Number Policy Form No. P15PVA, ICC15 P15PVA Form Number based on state of policy issue. Issued by Pacific Life Insurance Company. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

Term vs. Cash Value Life Insurance1 VUL is too expensive Term vs. Cash Value Life Insurance1 1 See slide 3 for assumptions and product used

VUL is too expensive Term Life Insurance +Taxable Investment vs. Cash Value Life Insurance – closer look1 Cash Value Life Insurance Gross Earnings Rate Assumption 8.00% (7.21% Net) Term Life Insurance + Taxable Investment Initial Before Tax Rate is 8.00% (6.00% After Tax) Comparisons Year Age Annual Premium Outlay* (1) Policy Distributions (2) Net Cash Surrender Value (3) Death Benefit (4) Term Insurance Policy Premium (5) Net Income (6) Taxable Investment Annual Outlay (7) EOY After-Tax Value of Taxable Investments (8) Term Life Insurance Death Benefit (9) Term Life Insurance Death Benefit + Taxable Investment (10) Difference in Total Cash Column 3-8 (11) Difference in Value at Death Column 4-10 (12) Pre-tax Rate Of Return on taxable investment (13) 1 45 25,000 14,679 547,547 929 24,071 25,515 525,657 551,172 -10,836 -3,625 -52.02% 5 49 119,681 651,457 143,832 669,489 -24,151 -18,032 -0.25% 10 54 299,561 829,971 336,311 861,963 -36,751 -31,998 5.25% 15 59 576,280 1,104,314 593,892 1,119,549 -17,612 -15,235 7.53% 20 64 979,643 1,505,300 938,594 1,464,251 41,049 8.49% 21 65 92,141 958,467 1,413,159 -92,141 912,078 897,240 61,227 515,919 8.63% 34 78 483,299 551,024 101,190 69,541 413,759 481,484 9.29% 35 79 421,879 492,176 -69,541 9.24% 36 80 355,791 428,554 9.01% 37 81 284,679 359,787 8.78% 38 82 208,155 285,469 8.55% 39 83 125,802 205,167 8.33% 40 84 37,158 118,399 8.09% 41 85 37,505 120,549 76 120 355 35,728 8.00% 1 See slide 3 for assumptions and product used

VUL is too expensive - Policy Charges Page1 1 See slide 3 for assumptions and product used Policy charges will reduce the effective rate of return on your accumulated value in the variable investment options. Policy charges may also exceed the interest credited To your accumulated value in the fixed and indexed accounts.

What Your Policy Values Are VUL is too expensive – Policy Charges closer look1 What You Pay What We Deduct What Is Added What You Take Out What Your Policy Values Are  Year Age Premium Outlay* Premium Load Admin & Rider Charges Non Guaranteed Coverage Charge Non Guaranteed Cost Of Insurance Investment Fees and Expenses ** Total Insurance Charges Assumed Gross Rate of Return*** Net Annual Policy Distributions Loan Interest Due Net Accumulated Value Policy Surrender Charge Net Cash Surrender Value Max Surrender Charge Policy Charges as a % of Gross Accumulated Value 1 45 25,000 -1,313 -180 -3,050 -145 -173 -4,860 1,750 21,890 7,211 14,679 -22.20% 5 49 -357 -939 -5,839 9,511 125,800 6,119 119,681 -4.64% 10 54 -497 -2,252 -7,292 23,218 304,314 4,753 299,561 -2.40% 15 59 -517 -537 -4,253 -6,800 45,139 578,657 2,377 576,280 -1.18% 20 64 -942 -7,183 -10,134 78,400 979,643 -1.03% 21 65 -1,256 -1,023 -7,339 -9,798 80,763 -92,141 958,467 -1.02% 34 78 -844 -3,875 -4,899 58,188 -18,241 483,299 -0.36% 35 79 -968 -3,423 -4,571 56,016 -20,725 421,879 -0.33% 36 80 -1,111 -2,937 -4,229 53,547 -23,264 355,791 -0.29% 37 81 -1,270 -2,415 -3,864 50,754 -25,861 284,679 -0.26% 38 82 -1,444 -1,852 -3,477 47,610 -28,516 208,155 -0.22% 39 83 -1,639 -1,247 -3,065 44,083 -31,231 125,802 -0.19% 40 84 -1,863 -595 -2,638 40,142 -34,007 37,158 -0.16% 41 85 -2,116 -284 -2,580 38,649 -35,722 37,505 76 120 -3 77,857 355 0.00% 1 See slide 3 for assumptions and product used

Variable Universal Life - Distribution Comparison Male 45 Best Non Smoker, $25K annual premium payment policy years 1-20, Minimum Non-Modified Endowment Contract Death Benefit, Increasing switching to Level in year 21, 20 years of monthly policy distributions starting in policy year 21, withdrawals until basis then loans, solving for $10K at Age 120. 8% Non-Guaranteed Illustrated rate* *See Slide 4 For Products used in this comparison and disclosure

Survivorship Variable Universal Life – Premium Comparison Male and Female 55 Best Nonsmoker, $3,000,000 Death Benefit, 10 annual premiums solving for $3,000,000 of cash surrender value at age 120, 8% nonguaranteed Illustrated rate* *See Slide 5 For Products used in this comparison and disclosure

Your Dedicated Representative’s ext. or e-mail address VUL takes too long to service At Your fingertips… Policyowners My Life Insurance Account (MLA) Life Insurance Producers Planned Performance Tracking (PPT) Client Services (800)800-7681 x 8998 Or Your Dedicated Representative’s ext. or e-mail address

Policyowner Access My Life Insurance Account

Life Insurance Producer Access Planned Performance Tracking SAMPLE Additional Capabilities New Business Info As Issued ledger E-Alerts Policy Reminders On Demand Reports In force ledgers Inforce admin Request transfers, rebalancing and futures

Our Policyowners Are Important To Us2 AXA Banner Life/William Penn Genworth Lincoln Financial Prudential PLC Transamerica VOYA Companies that have raised Cost of Insurance Rates on in-force policies in the past 12 months 2 See Source on Slide 3

Our Policyowners Are Important To Us The impact of all improvements is over $425 million in policy owners savings! 127 - Life insurance product improvements since 1985 28 - Life insurance products with current Cost of Insurance (COI) improvements 19 - Life insurance products with the current premium load reduced twice 6 - Life insurance products with current COI improvements two or more times 4 - Life insurance products with an increase in nonguaranteed persistency credit 1 - Life insurance product with reduced Mortality & Expense charge

Our Policyowners Are Important To Us The chart below demonstrates the potential impact of Pacific Life’s current cost of insurance rate improvements for an inforce Pacific Select Exec II* policy. Accumulated values are based on current nonguaranteed elements. Assumptions: Pacific Select Exec II (Policy Form #P98-52*) issued in 2004. Insured age at issue: Male, age 43, standard nonsmoker risk classification. Death benefit Amount: $100,000 all base. Death Benefit Option: Level. Annual premium: $965 paid as monthly premiums of $80.41, paid to age 100. Illustrated accumulated value assumes current policy accumulated value of $5,105 in current policy year 13, 8% hypothetical gross earnings rate and current charges in future years and COI rate improvements starting in the 11th policy year. Individual policyowner impact will vary based on product, issue age and policy year. Some issue ages may not observe a rate reduction at any duration. COI improvement year will vary based on product and issue age. *Product no longer available for new sales. A 0% growth assumption is not illustrated, because all policies compared with this rate of return would not build sufficient cash value to keep it in force and, therefore would lapse

Questions? Contact Information jchurch@pacificlife.com VULExpert@pacificlife.com (800) 800-7681 x. 7151 (Toll Free) (949) 420-7151 Direct (949) 315-0478 Mobile 16-137 PT-44948-01 8/16