2008-10-13 19:44:03 -

www.businesswire.com/cgi-bin/mmg.cgi?eid=5801849 - Pacific Life June Arce, 949-219-6916 Two new optional benefits are now available through Pacific Life's variable annuities. Flexible Lifetime Income Plus (FLI Plus) provides the opportunity for 7% restartable credits, while Automatic Income Builder guarantees an annual withdrawal percentage that will automatically increase over time to 7%--or even higher. Both are offered through The

Power of Choice--a suite of optional benefits designed to help keep investments or income safe for the future.

In addition to 7% restartable credits, FLI Plus offers annual automatic and client-elected step-ups and the opportunity to withdraw up to 6% for life. It may be ideal for clients with 10, 15, 20, or more years until retirement. The withdrawal percentages are based on purchase age or when a step-up takes place. FLI Plus replaces Flexible Lifetime Income in approved states.

Automatic Income Builder provides withdrawal percentages that automatically increase at the contract anniversaries following clients' 70th and 85th birthdays and is designed for those who are concerned with the rising cost of living and are ready to start taking income sooner rather than later. Additionally, if withdrawals are delayed, 0.1% is added to the withdrawal percentage each year.

"Clients are looking for more choices and flexibility to help them in their retirement planning," says Kathleen McWard, vice president of marketing, Annuities & Mutual Funds Division. "Our goal with The Power of Choice is to provide clients with options during different stages of their lives, giving them even more alternatives as their financial needs change."

The Power of Choice options are all available for an additional cost to contract owners who remain within the investment allocation guidelines of The Power of Diversification(R)--Portfolio Optimization, Asset Allocation Strategies, or Custom Models. While FLI Plus and Automatic Income Builder do not guarantee a return or growth rate, they do guarantee the percentage that may be withdrawn regardless of the annuity's actual value--even if it's zero. The benefits may be purchased at contract issue, or within 60 days of contract issue or contract anniversary. The protected amount equals the initial investments (purchase payments) if purchased at contract issue. Otherwise, the protected amount is the contract value when the optional benefit is added.

About Pacific Life

Offering insurance since 1868, Pacific Life provides a wide range of life insurance products, annuities, and mutual funds, and offers a variety of investment products and services to individuals, businesses, and pension plans. With more than 100 of the largest U.S. companies as its clients, Pacific Life is also a member of the Insurance Marketplace Standards Association (IMSA), whose membership promotes high ethical standards for the sale of individual life insurance and annuities. For additional company information, including current financial strength ratings, visit Pacific Life online at www.PacificLife.com.

Pacific Life is the name that refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Client count data compiled by Pacific Life using the FORTUNE 500(R) list as of April 2008.

You should carefully consider a variable annuity'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 provided in the product and underlying fund prospectuses. These prospectuses are available from your registered representative or by calling (800) 722-4448. Read them carefully before investing.

Variable annuities are long-term investments designed for retirement. The value of the variable investment options will fluctuate, and when redeemed, may be worth more or less than the original cost. Withdrawals and other distributions of taxable amounts, including death benefit payouts, will be subject to ordinary income tax. If withdrawals and other distributions are taken prior to age 59 1/2, a 10% federal tax penalty may apply. A withdrawal charge also may apply. Withdrawals will reduce the value of the death benefit and any optional benefits.

FLI Plus is named "Guaranteed Withdrawal Benefit" in the contract rider. Automatic Income Builder is named "Guaranteed Withdrawal Benefit III" in the contract rider. FLI Plus credits will be treated as earnings for income tax purposes.

Guaranteed minimum withdrawal benefit withdrawals are not annuity payouts. Annuity payouts generally receive a more favorable tax treatment than other withdrawals. Any credit enhancement offered by the variable annuity will not apply to optional benefit guarantees, unless a step-up occurs.

"Pacific Life" is 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 company is solely responsible for the financial obligations accruing under the products it issues. Product and rider guarantees are backed by the financial strength and claims-paying ability of the issuing company and do not protect the value of the variable investment options.

Variable insurance products are distributed by Pacific Select Distributors, Inc. (member FINRA & SIPC), a subsidiary of Pacific Life Insurance Company, and are available through licensed third-party broker/dealers.

¶ Optional Benefits to Help Keep Variable Annuity Investments or
Income Safe for the Future