Newport Beach, Calif. (April 23, 2008) – Flexibility is the key to estate and business planning in uncertain times.  Pacific Life Insurance Company addresses this need with Versa-Flex NLG¹, a new single-life universal life (UL) insurance product that offers the powerful combination of no-lapse guarantees with flexible durations and potential cash value accumulation in the policy’s early years so policyowners can respond to changes in the financial environment and their plans.

“Most universal life insurance products with guarantees do not offer the potential for cash value in the policy’s early years but it’s the cash value accumulation that gives clients the ability to respond when things change,” said Alyce Peterson, vice president of marketing services for the company’s Life Insurance Division. 

Key built-in features of Versa-Flex NLG include:

The Flexible Duration No-Lapse Guarantee Rider2 that guarantees the death benefit even if the policy’s net accumulated value is zero and offers a choice of how long the rider will be in effect up to lifetime.3 (A portion of each premium payment covers the cost of this guarantee.) Policy exchange rider that allows client to switch to a different life insurance policy from Pacific Life with no underwriting.4  Ability to reduce the policy’s face amount and adjust premium payments.

Peterson explained that today's clients are including provisions that add flexibility to their trusts that give the trustee more options to make changes should the estate tax laws change.⁵ With Versa-Flex NLG's combination of no-lapse benefits and cash surrender value in the policy’s early years, a client's trustee could use a combination of the trust provisions and the policy's cash value to adapt to the changed circumstances.⁶  

Pacific Life also offers a client guide called, "Build an Irrevocable Life Insurance Trust (ILIT) with Flexibility" that is available for insurance professionals to use with their clients. 

Pacific Life Insurance Company
Founded in 1868, Pacific Life provides life insurance products, annuities and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans.⁷ Pacific Life counts more than half of the 50 largest U.S. companies as clients⁸ and is a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities.

1	Policy Form #P08VN1
2	Form #R03FNL
3	Rider cost is based on the net amount at risk, plus an asset-based charge.  Issue ages 20-75.
4	Conversion Rider (Form #R06CON)
5	The federal estate tax exemption of $2,000,000 in 2007-2008 and increases to $3,500,000 in 2009.  The highest federal estate tax is 45% in 2007-2009.  The federal estate tax will be repealed on 1/1/10until 12/31/10.  Beginning 2011, the federal estate tax will be reinstated with a federal estate tax exemption amount of $1,000,000 and a maximum estate tax rate of 55%.  Congress continues to discuss and consider legislation that if passed, would permanently repeal or otherwise lessen the impact of the federal estate tax.
6	Any policy withdrawals, loans, and loan interest will reduce policy values and may reduce benefits.
7	Product availability and features may vary by state.
8	Data compiled by Pacific Life using the FORTUNE 500® list as of April 2007

Pacific Life Insurance Company is licensed to issue individual life insurance and annuity products in all states except New York.  Product availability and features vary by state.  Product and rider guarantees are backed by the financial strength and claims-paying ability of Pacific Life.

Non-guaranteed elements are not guaranteed by definition.  As such, Pacific Life 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.
 
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 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.