1. Protection Now. Income Later.
Life Insurance Retirement Plan for Women
[Introduce yourself and welcome your client(s) to the presentation: Women and Wealth, using the Life Insurance Retirement Plan].
Whether you are married, single, partnered, or widowed, are you financially prepared for retirement? Would you like to supplement your retirement income, and know your family is financially secure after you are gone?
Today, we’ll talk about how the Life Insurance Retirement Plan can help with your retirement goals.
Let’s get started.
Presented by
<Life Insurance Producer's Name>
<Life Insurance Producer's Company>
<Securities Offered Through>
<Life Insurance Producer's Address>
<Life Insurance Producer's Telephone Number>
<Life Insurance Producer's State Insurance License>
June 2012
VLCM-OC-286A
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VLCM-OC-286A

2. 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.
Show/review Circular 230 Disclosure.

3. Pacific Life Insurance Company Newport Beach, CA (800) 800-7681. www
Pacific Life Insurance Company Newport Beach, CA (800) *
Pacific Life & Annuity Company Newport Beach, CA (888) *
Investment and Insurance Products: Not a Deposit – Not FDIC Insured – Not Insured by any Federal Government Agency – No Bank Guarantee – May Lose Value
You should carefully consider a variable life insurance product’s risks, charges, limitations and expenses, as well as the risks, charges, expenses and investment objectives of the underlying investment options. This and other information about Pacific Life are in the product and underlying fund prospectuses available from your registered representative or by calling (800) Read the prospectuses carefully before investing Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues. Insurance products and their guarantees, including optional benefits and any fixed subaccount 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 this product is 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 are distributed by Pacific Select Distributors, Inc., (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and an affiliate of Pacific Life & Annuity Company, and are available through licensed third-party broker-dealers.
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4. Which Describes You? Business Owner Professional Highly-Paid Executive
Divorce Settlement
Inherited Wealth
Entrepreneur
Sources of Affluence
Wife
Suddenly Single -Divorcee -Widow
Never Married
Unmarried Couple
Mother
Daughter
Caretaker
Relationship Roles
Here are some common terms used to describe wealth and traditional roles of affluent women.
Which roles describe you?

5. Women as Key “Financial Decision Makers”
30 women CEOs in U.S. Fortune 1000 companies*
46% of women make up total private workforce**
$1.9 Trillion in sales from women-owned businesses***
More and more, women are a driving force in today’s economy. There are 30 chief executive officers that lead U.S. Fortune 1000 companies who are women,* 46% of the total private sector workforce are women,** and women-owned businesses employ more than 13 million people that are responsible for $1.9 trillion in sales.***
Women not only play a vital role in today's economy, but they are key decision makers with their family's financial affairs. Women have changed the business landscape, and they have experienced significant success and financial gains. However, when it comes to their retirement planning, many women have not taken control of their destiny and they are not saving enough, which may lead to two major problems.
* See “Women CEOs of the Fortune 1000” published by Catalyst, July 2009; ** “Men or Women: Who’s the Better Leader? A Paradox in Public Attitudes;” P. Taylor, R. Morin, D. Cohn, A. Clark, W. Wang, Research Analyst (August 25, 2008, Pew Research Center); org/pubs/932/men-or-women-whos-thebetter-leader and *** org/research/keyfacts/; see also “Key Facts About Women-Owned Businesses ( )” published by the Center for Women’s Business Research.
* See “Women CEOs of the Fortune 1000” published by Catalyst, July 2009; ** “Men or Women: Who’s the Better Leader? A Paradox in Public Attitudes;” P. Taylor, R. Morin, D. Cohn, A. Clark, W. Wang, Research Analyst (August 25, 2008, Pew Research Center); org/pubs/932/men-or-women-whos-the-better-leader and *** org/research/key facts/; see also “Key Facts About Women-Owned Businesses ( )” published by the Center for Women’s Business Research.

6. Two Problems Facing Today’s Woman
Potential for Outliving Retirement Assets
Family’s Financial Vulnerability
Whether you’re a part of a two-income family, the primary breadwinner or the primary family caregiver, your family could suffer a financial loss if you died.
Plus, women have a longer life expectancy than men. During retirement, there is a greater risk for women to outlive their retirement assets.*
*Source: "Women And The Retirement Perfect Storm", M. Beams (May 2, 2012); Forbes.com at

7. What Unique Retirement Challenges Do Women Face?
“Is retirement planning really that different for women?”
Besides the fact that women live longer, what are other unique retirement challenges women face?

8. Why Women May Need To Save and Plan More Than Men
Women typically earn less.
Women leave & rejoin the work force more often (i.e., pregnancy, spouse relocation, taking care of ailing parents.
Less opportunity to contribute to a 401(k) or other retirement plan
Let’s assume that private pensions and retirement plans will be sufficient for retirement.
Less than one-third of older retired women receive pension income. Less than one-half of working women have access to private pension or retirement plans at their jobs.* Likewise, many women leave their employers to take care of family affairs before vesting in their pension plans. Additionally, women generally earn only about 80% of what men earn** – this may hurt a woman’s retirement planning because the formulas for most pension plans are based on income. In today’s economy, many employers have cut back on their matching contributions to retirement plans to save costs.
Source: "Women And The Retirement Perfect Storm", M. Beams (May 2, 2012); Forbes.com at
* Source: "Women And The Retirement Perfect Storm", M. Beams (May 2, 2012); Forbes.com at
** Source: “Women earn just 80% of men’s pay, but there’s light at the end of the tunnel. IBISWorld.” Smartcompany.com.au (March 7, 2012).

9. Will You Have What You Need To Maintain Your Lifestyle?
Annual Compensation Replacement Example
Compensation
$50,000
$70,000
$100,000
$150,000
$200,000
$250,000
401(k) Plan Deferral 10% of Compensation*
$5,000
$7,000
$10,000
$15,000
$17,000
$16,500
Benefits at Age 67 from 401(k) Plan**
17,148
24,012
34,307
51,467
58,331
56,615
Benefits at Age 67 from Social Security***
20,148
24,516
28,692
30,912
30,972
Total Retirement Benefits
37,332
48,528
62,999
82,379
89,303
% of Compensation
74.7%
69.3%
63.0%
54.9%
44.7%
35.7%
Many women rely on qualified plans and Social Security benefits for supplemental retirement income, but limits on these plans can actually work against an individual earning a high income. As you can see in this example, a woman earning $50,000 will receive 74.7% of her income at retirement from qualified plans and social security but a woman earning $200,000 would receive only 44.7%. Women earning high incomes need to plan for their retirement and seek additional sources to supplement income from Social Security and pensions.
Like men, as a woman’s income increases, a decreasing % of their income may be provided at retirement through qualified plans & Social Security
*The maximum contribution for 2012 is $17,000. However, if you will attain age 50 before the close of the plan year, you will also be eligible to defer an additional $5,500 as a catch-up contribution. In order to take advantage of the catch-up contribution election, you must first defer and contribute the full $17,000 of your pay during the plan year. Chart does not reflect the use of the catch-up provision. The maximum annual contribution may differ for other types of qualified plans.
** Benefits from the 401(k) assume: (1) An individual age 45; (2) Contributions made for 22 yrs.; (3) Annual contribution increases at a rate of 2%; (4) 401(k) assets accumulate at 8% and payout is based on a single life annuity purchased at age 67.
*** Social Security benefits are based on the 2009 Quick Benefit Calculator at Calculations assume: (1) An individual age 45 in 2012will receive full Social Security benefits at age 67; (2) A worker’s past earnings are based on the national average wage indexing series with a relative growth factor of 2%; (3) Current earnings stay the same until age 67 and are limited to the 2012 taxable maximum of $110,000.
*The maximum contribution for 2012 is $17,000. However, if you will attain age 50 before the close of the plan year, you will also be eligible to defer an additional $5,500 as a catch-up contribution. In order to take advantage of the catch-up contribution election, you must first defer and contribute the full $17,000 of your pay during the plan year. Chart does not reflect the use of the catch-up provision. The maximum annual contribution may differ for other types of qualified plans.
** Benefits from the 401(k) assume: (1) An individual age 45; (2) Contributions made for 22 yrs.; (3) Annual contribution increases at a rate of 2%; (4) 401(k) assets accumulate at 8% and payout is based on a single life annuity purchased at age 67.
*** Social Security benefits are based on the 2009 Quick Benefit Calculator at Calculations assume: (1) An individual age 45 in 2012will receive full Social Security benefits at age 67; (2) A worker’s past earnings are based on the national average wage indexing series with a relative growth factor of 2%; (3) Current earnings stay the same until age 67 and are limited to the 2012 taxable maximum of $110,000.

10. Where Do I Start?
“What options do I have to save for retirement and how do they compare with each other?”
So, where do you start? First, determine what your retirement income needs will be. Also, consider what impact your premature death might have on your family financials as well as the future retirement goals for your spouse or partner.
For the next step, look at some of the available financial vehicles that you can use to help you accumulate assets for your retirement. Permanent cash value life insurance for example, offers a death benefit that is paid to your policy beneficiary(ies) that is generally income tax-free.* Plus there is tax-deferral on any increase in cash value and you can access your policy’s available cash surrender value for supplemental retirement income, cash emergencies or other financial needs generally income tax-free as long as your policy is properly structured.*
*Tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death; (3) withdrawals taken during the first 15 policy years do not occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. See IRC Secs. 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.

11. A Number of Ways to Save for Retirement
Annual Limits on Contributions
Pre-Tax Contributions
Tax-Deferred Accumulation
Tax-Preferred Distribution
Income Tax-Free Distributions at Death
Traditional Individual Retirement Account (IRA)
Yes No
Roth IRA
Yes1
Yes2
Qualified Plan
Certificate of Deposit (CD)3
Mutual Fund4
Municipal Bond Fund5
Individual Owned Deferred Annuity
No6
Life Insurance
No7
Yes8
Yes9
1 A Roth IRA allows you to make contributions with after-tax money without current income tax deductions. You pay taxes now and may enjoy tax-free income later, provided you hold the Roth IRA for at least five years and don’t take distributions before reaching age 59½. If you do not meet the five years and attaining age 59½ requirements and need to take a distribution, you may owe income tax on earnings, and a 10% federal tax penalty may apply to the earnings and prior converted amounts. Similar to the traditional IRA, there are exceptions to the 10% federal tax penalty for withdrawals and the 59½ age requirement, such as first-time home purchase, death, disability, certain qualifying medical expenses, health insurance premiums, or higher-education expenses.
2 A distribution from a Roth IRA generally is income tax-free if (a) it meets all the requirements for a qualified distribution (which include a 5-year waiting period and one of several additional requirements, one being that the distribution is made to a beneficiary on or after the death of the individual), or (b) it is a nonqualified distribution to the extent of after tax distributions (basis).
3 A Certificate of Deposit (CD) is FDIC insured.
4Mutual funds may be subject to income tax and/or capital gains taxation. Consult your tax advisor for more information.
5Generally, interest paid on municipal bonds is tax-free, but not all municipal bonds are exempt from federal and/or state income tax. Some bonds may be subject to capital gains tax at sale. Consult your tax advisor for more information.
6 Upon distribution, when a contract annuitizes, a portion of principal is included in the annuity payout. The principal portion is not subject to tax. 7There is not a specific limit on dollars allocated to purchase life insurance; however, there are maximum premium limits determined by a specified policy face amount. A policy will qualify as life insurance if it meets the requirements of IRC Sec. 7702, which includes limits on the amount of premium that may be paid into a specific face amount and still qualify as life insurance.
8Tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death; (3) withdrawals taken during the first 15 policy years do not occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. See IRC Sections 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits. 9For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Section 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 Section 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 Section 101(j ).
So depending on your financial plan and retirement income needs, one or more of these options may be right for you.
This chart outlines their characteristics in terms of contribution limits, taxation during accumulation and taxation at distribution.
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12. A Retirement Planning Plan to Consider…
Financial Protection
Death Benefit protects loved ones while building toward retirement.
Cash Flow Flexibility
Increase premiums as income increases, or
Suspend premiums at retirement.
Supplements Income in Retirement
Distributions through policy loans and withdrawals *
Portability
You own the life insurance policy so changing jobs or careers has no impact.
Life Insurance Retirement Plan (LIRP)
Protection Now. Income Later.
In some situations, after you have maximized your contributions to your qualified plans and other retirement investment vehicles, a permanent cash value life insurance policy can be an ideal complement to your existing retirement plan as it can provide supplemental retirement income through the policy's available cash surrender value. In addition, the life insurance policy can provide an income tax-free* death benefit to your beneficiaries.
One strategy that you could consider is a Life Insurance Retirement Plan. Specifically, the Life Insurance Retirement Plan or LIRP, refers to a frequently used and easily implemented life insurance strategy based on the need for supplemental retirement income accumulation. The personally-owned life insurance policy serves the dual purpose of providing death benefit protection for your designated beneficiary(ies) as well as providing you with supplemental retirement income via the policy’s cash surrender value.
*The amount of policy loans and withdrawals will depend on various factors that include policy performance and policy fees or expenses. Policy fees and expenses encompass premium loads, cost of insurance charges, administrative fees and charges, surrender charges or any other charges that may be incurred under the policy. A personalized illustration reflecting the effect of policy fees and expenses can be obtained from your financial advisor.
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*For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Section 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 Section 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 Section 101(j ).
** The amount of policy loans and withdrawals will depend on various factors that include policy performance and policy fees or expenses. Policy fees and expenses encompass premium loads, cost of insurance charges, administrative fees and charges, surrender charges or any other charges that may be incurred under the policy. A personalized illustration reflecting the effect of policy fees and expenses can be obtained from your life insurance producer.

13. How Does the LIRP Work?
“How do I structure a Life Insurance Retirement Plan?”
If you and your life insurance producer determine that the Life Insurance Retirement Plan fits your insurance and financial needs, your life insurance producer can help you by selecting the type of a life insurance policy that fits your risk tolerance and time horizon. Permanent life insurance, such as whole life, universal life and variable universal life, provides lifetime death benefit coverage for one or more individuals (or until the policy’s maturity date).
The next step would be to structure the ownership and beneficiaries. Typically, you will be the owner and insured of the policy. As the owner, you designate the policy’s beneficiaries. Next you would configure the policy’s planned premiums to accept maximum premium payments relative to the desired death benefit. That way, over time, the policy’s cash value has the potential to grow to a significant level.
Let’s take a more detailed look at how a Life Insurance Retirement Plan would work….

14. How It Works: Life Insurance Retirement Plan2
Annual Premiums
Life Insurance Policy
Death Benefit 1
Supplemental Retirement Income (Policy Loans/Withdrawals) 3
First, you as the insured would purchase and personally own a cash value life insurance policy on your life. The death benefit will provide financial protection for those family members you have designated as the beneficiary(ies).
Second, if the life insurance policy is properly structured, the cash value of the life insurance policy will grow tax-deferred.
Third, when you reach retirement, you may take potentially tax-free* loans or withdrawals from the policy’s available cash surrender value to supplement your retirement income.
And finally, upon your death, the beneficiary(ies) will receive the life insurance policy’s death benefit proceeds income tax-free.**
Let’s look at a few things that you should keep in mind before implementing a LIRP…
You, the Insured
Beneficiaries
*Tax-free income assumes, among other things: (1) withdrawals do not exceed tax basis (generally, premiums paid less prior withdrawals); (2) policy remains in force until death; (3) withdrawals taken during the first 15 policy years do not occur at the time of, or during the two years prior to, any reduction in benefits; and (4) the policy does not become a modified endowment contract. See IRC Sections 7702(f)(7)(B), 7702A. Any policy withdrawals, loans and loan interest will reduce policy values and may reduce benefits.
**For federal income tax purposes, life insurance death benefits generally pay income tax-free to beneficiaries pursuant to IRC Section 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 Section 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 Section 101(j ).

15. How Does the Life Insurance Retirement Plan Help?
Protects Your Loved Ones
Offers Flexibility in Cash Flow
Provides Supplemental Income in Retirement
As you can see, the Life Insurance Retirement Plan is a way to use flexible premium cash value life insurance and all its benefits as a source of funds to be used during retirement. Not only does it help provide for your loved ones through death benefit protection, the flexibility in cash flow for premiums and accumulated value’s tax-deferred growth potential can help to supplement your income in retirement.

16. A Few Things To Consider
Premium payments are made with the policyholder’s after-tax dollars.
Policy may require additional premiums to meet supplemental retirement income needs.
Life insurance death benefit proceeds will be included in the insured’s taxable estate* (unless additional planning is completed).
* From January 1, 2012 to December 31, 2012, the federal estate tax exemption amount is $5,120,000 ; the maximum estate tax rate is 35%; and, the rules regarding step-up in basis for property transferred at death are reinstated. Also over the same time period, if the executor of a deceased spouse’s estate so elects, the surviving spouse could later use his or her own unused estate tax exemption, plus the unused exemption of his or her most recently deceased spouse.
It’s important to keep in mind that the life insurance policy’s death benefit proceeds will be included in the insured’s taxable estate* unless additional planning is done.  For instance, by placing the life insurance policy in a properly drafted irrevocable life insurance trust (ILIT), the life insurance death benefit proceeds will be excluded from the insured’s gross estate and thus, avoid estate taxation.
It is also important to keep in mind that the premium payments will be made with the insured’s after-tax dollars unlike how most qualified plans are funded (i.e., with pre-tax dollars). 
Furthermore, additional premiums may be required to meet adequate supplemental retirement income needs and to keep the policy inforce.
* From January 1, 2012 to December 31, 2012, the federal estate tax exemption amount is $5,120,000 ; the maximum estate tax rate is 35%; and, the rules regarding step-up in basis for property transferred at death are reinstated. Also over the same time period, if the executor of a deceased spouse’s estate so elects, the surviving spouse could later use his or her own unused estate tax exemption, plus the unused exemption of his or her most recently deceased spouse.

17. Don’t Feel You Have To Go It Alone
As Your Life Insurance Producer, I can help you make a Product Choice that fits your risk tolerance & time horizon.
For some, looking at your financial goals and insurance needs may be overwhelming. But doing nothing may have an unintended impact.
So, don’t delay. As your life insurance producer, I can help you determine what product choice would fit your needs.

18. What Should I Do Next?
Let me help you get started today by speaking with you about how the Life Insurance Retirement Plan may apply to your insurance and retirement needs.
VLCM-OC-286A PT
VLCM-OC-286A PT