Pacific Life Insurance

With the image of a humpback whale bursting from dark blue waters behind its logo, Pacific Life has
become one of the most recognizable life insurance companies in the United States. The whale was
chosen because it represents persistence, performance and strength, words that could very well
describe Pacific Life

Pacific Life was started in 1868 by Leland Stanford, a United States Senator and founder of the university
that bears his name. Like any company over a hundred years old, Pacific Life has endured the ups and
downs that go with being a part of history and emerged from them even stronger.

Going Mutual

Needless to say the company has had many turning points but the one that impacted its customers most
profoundly came in 1997, when executives made the decision to convert Pacific Life from a publicly
traded insurance company to a mutual insurance company. In doing so, the company removed itself
from the fickle nature of the stock market and the pressure that goes with having to answer to
shareholders in quarterly meetings. A mutual insurance company is owned by its policyholders, giving
customers a stake in the company that insures. Ironically, it was also in 1997 that Pacific Life adopted
the humpback whale as its logo.

Since becoming a mutually insured company Pacific Life has become the largest life insurance company
in the Western United States.

Hard-Won Respect

Pacific Life’s assessments from the independent ratings agencies reflect the hard-won respect that
comes with being a consistent performer over the long haul. AM Best rates Pacific Life A+, Moody’s
Investors Service rates it A1, Standard and Poor’s rates Pacific Life AA-, while Fitch rates it AA-. Although
not at the top of the charts with State Farm, Met Life and Mass Mutual, Pacific Life is well in line with
the rest of its competitors.

Earlier in 2010, Pacific Life saw its rating affirmed by AM Best, which had given it an A++ rating in 2009.
The affirmation came after AM Best praised Pacific Life’s capital position and capital management
initiatives, but expressed concern over the degree to which its investment products were tied to the
extremely volatile residential and commercial mortgage loan markets.

It should be note that during the Great Recession, few insurance companies, like companies in other
industries, escaped with their rating unscathed. Some, like AIG, barely escaped at all. However, that
doesn’t mean that the ratings should be taking with a grain of salt. The independent ratings are the best
tool available to the consumer when he is trying to determine the financial strength of the company that
will insure him. After all, the rating reflects the company’s ability to pay for all of its benefits.
A Full Portfolio

Pacific Life’s portfolio of life insurance products is as deep as any of its competitors, and may be the
deepest of all. Pacific Life emphasizes the importance of life insurance as part of more comprehensive
plan of investing.

More than most companies, Pacific Life tries to address the balance investors are trying to strike when
they purchase life insurance with the goal of having death benefit protection as well as having an
investment with long-term growth potential. They have universal life, variable universal life, and whole
life like their competitors but Pacific Life also has a universal life product called Versa-Flex that may be
the most flexible life product available. Versa-Flex offers investors the ability to change face amounts,
premiums, death benefits (among others) on an as needed basis.

For a Certain Kind of Investor

Most of Pacific Life’s investment products are geared toward the savvy and affluent investor. Products
that allow for a lot of options require a certain level of resources and the assistance of a financial
advisor.

That is not to say that Pacific Life does not offer term products because they do. They offer a one year
term product for increased, temporary financial exposure, as well as 10 and 20-year term products.
Pacific Life’s term products are designed to be easily convertible in to a whole life policy. That is why
they do not offer a 30 year term product like many other life insurers.

Few companies have as much information online about their products as Pacific Life. They are dense
with information (variable interest rates, riders, death benefits and much, much more) and because of
this they need to be discussed with a qualified sales agent. This will help the consumer understand the
many options that are available as few companies have as many products for the upscale investor as
Pacific Life.

As you begin doing side by side comparisons with Pacific Life and its competitors, it is possible to get
overwhelmed by the sophistication of their products. Having great products is one thing but they are of
little use if there is no sales agent to explain them. This is where the real value of a sales agent comes in.
It is understood that your agent should be there in times of need. And you will truly appreciate the
agent who not only identifies products that can work for you, but takes the time to explain them also.