FHTT 2017 Only 2 spots left Were gearing

FHT&T 2017: Only 2 spots left! We’re gearing up to help your staff master the latest technology, add value to your practice with marketing and prospecting, and become a pro at the processes you need for efficiency and success. For the full agenda and to register, visit: www. firstheartland. com/fhtt 2017

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 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 $250 $198 $199 $200 $172 $174 $146 $150 $106 $109 $82 $100 $50 $4 $21 $36 $58 $0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Premium (in $Millions) by Product (LIMRA Int’l Q 4, 2009 – Q 4, 2015) Annualized 2008 VUL 12% Fixed UL 37% IUL 4% WL 24% 2015 Term 23% Fixed UL 20% IUL 17% VUL 7% Term 21% WL 35%

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+ 70, 000 Annualized Income Amount ($) 60, 000 50, 000 40, 000 30, 000 20, 000 10, 000 0 0 2, 000 4, 000 6, 000 8, 000 Target Premium ($) 10, 000 12, 000 14, 000 16, 000

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+ 70, 000 Annualized Income Amount ($) 60, 000 NALP+ BIUL AZL NA GIUL MNL Omga w. Var&IPA MNLAIG Orn w. Var&IPA Max Acc MNL Orn w. Var NA RBIUL MNL Eclipse LFG WA IUL LFG LR IUL AIG Value+ Voya IUL-Gbl. C JH AIUL Uo. O Inc Adv 50, 000 40, 000 Voya IUL-Gbl Acd Life Bldr Voya AXA IUL-PBL Grow Acd Life Prov. Nwd IUL Accum Pru. Acd IULLife Adv. Fndn Pro Idx Choice JH Pro. IUL AXA BL Pro AIG Elite IUL Nwd IUL Pro TA TN IUL Pru Fndrs+ AIG EG Plus PFG IUL A PFG IUL Flex 30, 000 20, 000 10, 000 Voya IUL-A Amtas IUL Plus 0 0 2, 000 4, 000 6, 000 8, 000 Target Premium ($) 10, 000 12, 000 14, 000 16, 000

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+ 70, 000 Annualized Income Amount ($) 60, 000 50, 000 40, 000 30, 000 20, 000 10, 000 0 0 2, 000 4, 000 6, 000 8, 000 Target Premium ($) 10, 000 12, 000 14, 000 16, 000

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+ 70, 000 Annualized Income Amount ($) 60, 000 50, 000 PIPLT Max Blend w. BDR 40, 000 PIPLT Max Blend PIPLT All Base w. BDR PIPLT All Base 30, 000 20, 000 10, 000 0 0 2, 000 4, 000 6, 000 8, 000 Target Premium ($) 10, 000 12, 000 14, 000 16, 000

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+ 70, 000 PDX Max Blend w. BDR 60, 000 Annualized Income Amount ($) PDX Max Blend PDX All Base w. BDR 50, 000 PDX All Base 40, 000 30, 000 20, 000 10, 000 0 0 2, 000 4, 000 6, 000 8, 000 Target Premium ($) 10, 000 12, 000 14, 000 16, 000

IUL Income Comparison Male, 51, 2 nd Best Class, $25, 000 per year over 15 years, Opt. B DB Switching to Level in Yr 16, Max Income via Variable Loan Rates Policy Death Benefit Target Prem Pacific Life PDX IUL w/ BDR 429, 928 12, 500 Pacific Life PDX IUL w/ BDR 429, 928 25, 000 Pacific Life PDX IUL 429, 928 25, 000 American General Max Accumulator+ Orion IUL Var. Loan w/ Minnesota Life IPFlex 426, 055 11, 026 426, 654 10, 376 Allianz Life. Pro+ 429, 813 9, 899 North American Builder IUL 8 418, 599 10, 197 Company Income $ 72, 015. 00 $ 66, 897. 00 $ 64, 854. 00 $ 60, 184. 00 $ 56, 821. 00 $ 56, 281. 00 $ 56, 112. 00 $ 54, 518. 00 $ Illus Rate AM Best 6. 17% A+ (2) 7. 40% A (3) 7. 13% A+ (2) 7. 00% A+ (2) 7. 09% A+ (2)

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 401 k – Executive Bonus or Restricted Executive Bonus – Loan Regime Split $, etc. • Short Pay Designs with or without NLG