Guide to Understanding the Annual Statement Accumulation Builder Choice Indexed Universal Life (IUL)

Transcription

1 Guide to Understanding the Annual Statement Accumulation Builder Choice Indexed Universal Life (IUL) is a permanent life insurance policy with flexible death benefit protection and the potential for market based cash value accumulation without direct participation in the stock market. Your Annual Statement provides policy values as of the policy anniversary date, as well as a history of the activity on your Indexed Universal Life policy over the last policy year. We have created this guide to help you understand your annual statement and the key terms used to describe your policy. Table of Contents Sample Annual Statement...2 Key Terminology...9 Optional Benefits and Riders...11 We are proud to have received an Excellent rating on our Indexed Universal Life Insurance Annual Statements from DALBAR, a market research firm. This rating is an indicator of Penn Mutual s leadership in producing high-quality electronic and print communications. If you have any questions about your statement, please contact your Financial Professional or Penn Mutual Client Services at

2 Sample Annual Statement This section of the guide walks through a sample Annual Statement to show you the layout and the information presented. The first page includes a summary of key policy Information, while the second page shows the allocations between the different account options, a summary of account activity for each account and any loans taken on the policy. Annual Statement for Policy # Policy Start Date: 12/20/2013 Policy Maturity Date: 12/20/2090 For additional information or questions, contact: WILLIAM PENN 789 SPRUCE STREET PHILADELPHIA PA Insured: WILLIAM PENN Primary Beneficiary: HANNAH PENN BENJAMIN FRANKLIN, CFP,ChFC,CLU FRANKLIN-RICHARDS AGENCY SUITE MAIN STREET PHILADELPHIA PA or contact Penn Mutual Client Services Policy Summary Beginning of Policy Year End of Policy Year Year to Year Change Total Death Benefit $700, $700, $0.00 Total Specified Amount $700, $700, $0.00 Total Policy Value $0.00 $2, $2, Total Cash Surrender Value $0.00 $9, $9, Loan Balance $0.00 $0.00 $0.00 Cash Surrender Value includes Surrender Benefit Enhancement from Surrender Benefit Enhancement Rider. Supplemental Term Insurance of $200, included in Specified Amount and Death Benefit. Level Death Benefit Option Activity Summary for Statement Period Beginning Policy Value $0.00 Total Premiums Paid + $9, Total Interest Credited + $ Total Product Charges - $7, Partial Withdrawals - $0.00 Ending Policy Value $2, Change in Policy Value $2, You have Penn Mutual's Accumulation Builder Choice IUL, a Flexible Premium Indexed Adjustable Life Insurance policy. As of this statement date, your policy has the following additional benefits: Surrender Benefit Enhancement Supplemental Term Insurance ($200,000) Disability Waiver of Monthly Deductions Accelerated Benefit - Chronic Illness Accelerated Death Benefit for Terminal Condition Times Change. Needs Change. It s important to periodically review your financial plan, including your life insurance, to help ensure you ll be ready for whatever the future holds. Take the first step toward making sure your plan is still on track to meet your future needs and goals by contacting your financial professional today to schedule a policy review. Policy Number: WILLIAM PENN Page 1 of 6 Page 1 Your policy has a cost basis of $9, Premium Allocations 1 Year S&P 500 Indexed Page 2 Premium and Policy Value Allocations Policy Policy Value s Prem % Value % Fixed Year S&P 500 Indexed $ Year S&P Global BMI $ Indexed 5 & 1 Year Blend S&P $ Indexed High Participation $ Year S&P 500 Indexed Dollar Cost Averaging (DCA) A scheduled premium payment of $9, is due Annually. Policy Value Allocations Summary of s Beginning Premiums Expense Partial Total Index Transfers Ending Value Value Charges Withdrawals and Interest (In and Out) (12/20/2014) (12/20/2013) and Cost of and Credited Insurance Traditional Loans $0.00 $2, $2, $0.00 $ $ $ Holding $0.00 $1, $ $0.00 $0.16 -$ $ Year S&P Global BMI Indexed 5 & 1 Year Blend S&P 500 Indexed $0.00 $1, $1, $0.00 $54.13 $ $ $0.00 $1, $1, $0.00 $74.23 $ $ High Participation $0.00 $1, $1, $0.00 $ $ $ Year S&P 500 Indexed Totals $0.00 $9, $7, $0.00 $ $0.00 $2, This guide uses a hypothetical policy as an example. For more information on the performance of the indexed accounts, please download your indexed account performance report from the Penn Mutual online client service center at or contact your financial representative. Total Policy Value $2, Policy Number: WILLIAM PENN Page 2 of 6 2

3 Sample Annual Statement Activity history by month appears in the next section of the statement. The final section of the statement includes important notices regarding your policy and information about the annual statement. There was no loan activity on this policy during the statement period. Your policy offers access to policy values through partial withdrawals or loans. If you are interested in additional information, contact your Financial Professional or Penn Mutual Client Services at Loans The following are current and past loan rates. The Indexed Loan rate is fixed. Note that loans are also credited interest daily. The credited interest is added directly into the cash value of the policy and helps offset the loan interest rate. Please see your policy for details Traditional Loan Interest Rate 4.80% 2015 Traditional Loan Interest Rate 4.20% Indexed Loan Interest Rate 6.00% Activity History for Statement Period Date Premiums Expense Charges Cost of Insurance Partial Withdrawals Total Interest Credited Policy Value 12/20/13 $8, $ $ $0.00 $0.00 $7, /13/14 $1, $80.00 $0.00 $0.00 $0.00 $8, /20/14 $0.00 $ $ $0.00 $6.28 $7, /20/14 $0.00 $ $ $0.00 $6.44 $7, /20/14 $0.00 $ $ $0.00 $5.36 $6, /20/14 $0.00 $ $ $0.00 $5.48 $5, /20/14 $0.00 $ $ $0.00 $4.88 $5, /20/14 $0.00 $ $ $0.00 $4.56 $4, /20/14 $0.00 $ $ $0.00 $3.92 $4, /20/14 $0.00 $ $ $0.00 $3.60 $3, /20/14 $0.00 $ $ $0.00 $3.12 $3, /20/14 $0.00 $ $ $0.00 $2.56 $2, Declared $2.16 Rates $1, and Percentages 11/20/14 $0.00 $ $ $ /20/14 $0.00 $0.00 The following $0.00 are the interest $0.00 credited rates $ declared for the Fixed $2, options during the statement period. $3, $0.00 $ $2, $9, $3, Totals Dec Feb Apr May Jan Mar Jun Jul Aug Sep Oct Nov Dec Of the total cost of insurance of $3, listed above, $3, Fixed is the cost for riders and benefits for all months during statement period Your life insurance qualification test is cash value accumulation. DCA The base no lapse guarantee is in effect until 12/20/2043. Holding 1.00 for all months during statement period Important Information on Coverage Duration High Participation 1 Year 1.00 for all months during statement period S&P 500 Indexed Your life insurance coverage is in danger of lapsing on 03/20/2015 if you do not make any premium payments. This is based on the minimum guaranteed interest rate and on The deduction following are of the maximum cap percentage expense rates charges that apply (which to new may segments not of the Indexed s during the statement period. occur). We strongly suggest you contact your financial professional or Penn Mutual Client Services to help ensure Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec your policy will remain in good standing. Policy Number: WILLIAM PENN Page 3 of 6 Year S&P for all months during statement period Notice from the State Insurance 1 Year S&P Department Global BMI of Washington for all months during statement period 6.50 for all months during statement period IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to 1 Year Segments understand how it may perform in the future. You should not consider replacement of your policy or make changes About this Statement for all months during statement period in your coverage without requesting a current illustration. You may annually request, without charge, such an 5 Year Segments illustration by calling , writing to Penn Mutual, PO Box 178, Philadelphia, PA 19105, or by calling your Your statement provides a history of the activity on agent. If you do not receive a current illustration of your The policy following within are 30 the days participation from your rates request, that apply you to should new segments contactof the Indexed s during the statement For more information... period. your policy for the policy year ending on 12/20/2014. your state insurance department. on how to read this statement and an blank Mar Please Apreview Maythis statement Jun Jul and Aug contact Sep Penn Oct MutualNov Dec explanation of terms and benefits, visit Dec Jan Feb if 100 you for have all months any questions. during statement You should period retain this scan 1 Year S&P 500 statement for your personal records, but note that this 100 for all months during statement period the image to the right, or contact Penn statement should not be used for tax-filing purposes. Mutual. 1 Year S&P Global BMI 100 for all months during statement period 1 Year Segments Questions? Contact BENJAMIN FRANKLIN or Penn Mutual (M-F 8:30 a.m. 5 & 1 to Year 6:00 Blend p.m. S&P Eastern) for all months during statement period 5 Year Segments Policy Number: WILLIAM PENN Page 4 of 6 Future rates may differ from declared rates listed above. Refer to your contract for more information. Unlock Life s Possibilities with Your Insurance Policy In addition to providing permanent death benefit protection, your policy offers you the opportunity to build cash value that can help you achieve goals during your lifetime, such as college funding, a more comfortable retirement, starting a business, and much more. Your policy cash value can also provide a financial safety net if you face an unexpected financial hardship. Talk to your Penn Mutual Financial Professional about maximizing your policy s strong cash value accumulation potential. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage and will reduce the death benefit and policy values. Making loan repayments can help protect the policy death benefit and values. Loans are income tax free as long as the policy is not a Modified Endowment Contract (MEC). Partial Surrenders can cause the policy to become a MEC. Loans will nullify the no-lapse guarantee. Policy Number: WILLIAM PENN Page 5 of 6 Pages 3-6 Policy Number: WILLIAM PENN Page 6 of 6 3

4 Sample Annual Statement - Page 1 WILLIAM PENN 789 SPRUCE STREET PHILADELPHIA PA Insured: WILLIAM PENN Primary Beneficiary: HANNAH PENN Annual Statement for Policy # Policy Start Date: 12/20/2013 Policy Maturity Date: 12/20/2090 For additional information or questions, contact: BENJAMIN FRANKLIN, CFP,ChFC,CLU FRANKLIN-RICHARDS AGENCY SUITE MAIN STREET PHILADELPHIA PA or contact Penn Mutual Client Services Includes your: Financial Professional s contact information Policy start and maturity dates Insured and primary beneficiary information Primary Beneficiary: HANNAH PENN Policy Summary Beginning of Policy Year End of Policy Year Year to Year Change Total Death Benefit $700, $700, $0.00 Total Specified Amount $700, $700, $0.00 Total Policy Value $0.00 $2, $2, Total Cash Surrender Value $0.00 $9, $9, Loan Balance $0.00 $0.00 $0.00 Cash Surrender Value includes Surrender Benefit Enhancement from Surrender Benefit Enhancement Rider. Supplemental Term Insurance of $200, included in Specified Amount and Death Benefit. Level Death Benefit Option Lists your policy: Death Benefit Specified Amount Policy Value Cash Surrender Value Outstanding loan balance if applicable Level Death Benefit Option Activity Summary for Statement Period Beginning Policy Value $0.00 Total Premiums Paid + $9, Total Interest Credited + $ Total Product Charges - $7, Partial Withdrawals - $0.00 Ending Policy Value $2, Change in Policy Value $2, You have Penn Mutual's Accumulation Builder Choice IUL, a Flexible Premium Indexed Adjustable Life Insurance policy. As of this statement date, your policy has the following additional benefits: Surrender Benefit Enhancement Supplemental Term Insurance ($200,000) Disability Waiver of Monthly Deductions Accelerated Benefit - Chronic Illness Accelerated Death Benefit for Terminal Condition Your policy has a cost basis of $9, Detail activity during the statement period, including:: Premium payments Interest Credited Product Charges Also includes your policy type and included benefits and riders Times Change. Needs Change. It s important to periodically review your financial plan, including your life insurance, to help ensure you ll be ready for whatever the future holds. Take the first step toward making sure your plan is still on track to meet your future needs and goals by contacting your financial professional today to schedule a policy review. Policy Number: WILLIAM PENN Page 1 of 6 Includes informational messaging particular to your policy 4

5 Sample Annual Statement - Page 2 Premium Allocations Premium and Policy Value Allocations s Prem % Policy Value % Policy Value Fixed Year S&P 500 Indexed $ Year S&P Global BMI $ Indexed 5 & 1 Year Blend S&P $ Indexed High Participation $ Year S&P 500 Indexed Dollar Cost Averaging (DCA) Policy Value Allocations Details your account allocation percentages among the Indexed and Fixed s for Premiums and Policy Value Shows the loan balance if any policy value has been allocated to traditional loans A scheduled premium payment of $9, is due Annually. Beginning Value (12/20/2013) Premiums Summary of s Expense Charges and Cost of Insurance Partial Withdrawals and Traditional Loans Total Index and Interest Credited Transfers (In and Out) Ending Value (12/20/2014) 1 Year S&P 500 $0.00 $2, $2, $0.00 $ $ $ Indexed Holding $0.00 $1, $ $0.00 $0.16 -$ $ Year S&P Global $0.00 $1, $1, $0.00 $54.13 $ $ BMI Indexed 5 & 1 Year Blend S&P $0.00 $1, $1, $0.00 $74.23 $ $ Indexed High Participation $0.00 $1, $1, $0.00 $ $ $ Year S&P 500 Indexed Totals $0.00 $9, $7, $0.00 $ $0.00 $2, For more information on the performance of the indexed accounts, please download your indexed account performance report from the Penn Mutual online client service center at or contact your financial representative. Total Policy Value $2, Policy Number: WILLIAM PENN Page 2 of 6 Summarizes activity during the statement period by account type. Details include: Beginning and Ending Policy Values Premium payments Interest Credited Product Charges Transfers (In and Out) Partial surrenders and traditional loans Also describes where to find more detailed information regarding performance of the Indexed s 5

6 Sample Annual Statement - Page 3 There was no loan activity on this policy during the statement period. Your policy offers access to policy values through partial withdrawals or loans. If you are interested in additional information, contact your Financial Professional or Penn Mutual Client Services at Loans The following are current and past loan rates. The Indexed Loan rate is fixed. Note that loans are also credited interest daily. The credited interest is added directly into the cash value of the policy and helps offset the loan interest rate. Please see your policy for details Traditional Loan Interest Rate 4.80% 2015 Traditional Loan Interest Rate 4.20% Indexed Loan Interest Rate 6.00% Provides detail on any loan activity. You have the option of either a Traditional or Indexed Loan. For more information on loans, see the key terminology section. Policy Number: WILLIAM PENN Page 3 of 6 6

7 Sample Annual Statement - Page 4 Activity History for Statement Period Date Premiums Expense Charges Cost of Insurance Partial Withdrawals Total Interest Credited Policy Value 12/20/13 $8, $ $ $0.00 $0.00 $7, /13/14 $1, $80.00 $0.00 $0.00 $0.00 $8, /20/14 $0.00 $ $ $0.00 $6.28 $7, /20/14 $0.00 $ $ $0.00 $6.44 $7, /20/14 $0.00 $ $ $0.00 $5.36 $6, /20/14 $0.00 $ $ $0.00 $5.48 $5, /20/14 $0.00 $ $ $0.00 $4.88 $5, /20/14 $0.00 $ $ $0.00 $4.56 $4, /20/14 $0.00 $ $ $0.00 $3.92 $4, /20/14 $0.00 $ $ $0.00 $3.60 $3, /20/14 $0.00 $ $ $0.00 $3.12 $3, /20/14 $0.00 $ $ $0.00 $2.56 $2, /20/14 $0.00 $ $ $0.00 $2.16 $1, /20/14 $0.00 $0.00 $0.00 $0.00 $ $2, Totals $9, $3, $3, $0.00 $ $2, Summarizes monthly account activity by activity date, including: Premium payments Product Charges Any Partial Surrenders Total Interest Credited Policy Value on each date Of the total cost of insurance of $3, listed above, $3, is the cost for riders and benefits. Your life insurance qualification test is cash value accumulation. The base no lapse guarantee is in effect until 12/20/2043. Important Information on Coverage Duration Your life insurance coverage is in danger of lapsing on 03/20/2015 if you do not make any premium payments. This is based on the minimum guaranteed interest rate and on deduction of the maximum expense charges (which may not occur). We strongly suggest you contact your financial professional or Penn Mutual Client Services to help ensure your policy will remain in good standing. If your coverage is in danger of lapsing in the near future, a message will appear in your statement. It will notify you of the potential lapse date if you do not make additional premium payments and is based on crediting of the minimum guaranteed interest rate and deduction of maximum charges. Important Information on Coverage Duration Your life insurance coverage is in danger of lapsing on 03/20/2015 if you do not make any premium payments. This is based on the minimum guaranteed interest rate and on deduction of the maximum expense charges (which may not occur). We strongly suggest you contact your financial professional or Penn Mutual Client Services to help ensure your policy will remain in good standing. Provides applicable state specific information about your policy 7

8 Sample Annual Statement - Page 5 Declared Rates and Percentages The following are the interest credited rates declared for the Fixed options during the statement period. Fixed Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 4.00 for all months during statement period DCA Holding High Participation 1 Year S&P 500 Indexed 1.00 for all months during statement period 1.00 for all months during statement period The following are the cap percentage rates that apply to new segments of the Indexed s during the statement period. Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 Year S&P for all months during statement period 1 Year S&P Global BMI for all months during statement period 6.50 for all months during statement period 1 Year Segments for all months during statement period 5 Year Segments The following are the participation rates that apply to new segments of the Indexed s during the statement period. Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 1 Year S&P for all months during statement period 1 Year S&P Global BMI 100 for all months during statement period 100 for all months during statement period 1 Year Segments 100 for all months during statement period 5 Year Segments Details by month for the statement period: Interest credited rates declared for the Fixed options Cap and participation rates for the Indexed s Future rates may differ from declared rates listed above. Refer to your contract for more information. Unlock Life s Possibilities with Your Insurance Policy In addition to providing permanent death benefit protection, your policy offers you the opportunity to build cash value that can help you achieve goals during your lifetime, such as college funding, a more comfortable retirement, starting a business, and much more. Your policy cash value can also provide a financial safety net if you face an unexpected financial hardship. Talk to your Penn Mutual Financial Professional about maximizing your policy s strong cash value accumulation potential. Provides details about one of the key features of your policy, the cash value accumulation potential Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage and will reduce the death benefit and policy values. Making loan repayments can help protect the policy death benefit and values. Loans are income tax free as long as the policy is not a Modified Endowment Contract (MEC). Partial Surrenders can cause the policy to become a MEC. Loans will nullify the no-lapse guarantee. Policy Number: WILLIAM PENN Page 5 of 6 8

9 Sample Annual Statement - Page 6 Your statement provides a history of the activity on your policy for the policy year ending on 12/20/2014. Please review this statement and contact Penn Mutual if you have any questions. You should retain this statement for your personal records, but note that this statement should not be used for tax-filing purposes. About this Statement For more information... on how to read this statement and an explanation of terms and benefits, visit scan the image to the right, or contact Penn Mutual. Describes the information provided in your annual statement and where to access more information. There is also a Quick Response (QR) Code included in your statement that is readable by an application you can download on your smartphone or tablet computer. Scanning the code will take you directly to a webpage that has more information. Policy Number: WILLIAM PENN Page 6 of 6 9

10 Key Terminology The following are some of the key terms referenced in your Annual Statement. For a more detailed description of terms, please review your policy. Policy Terms Cash Surrender Value The policy value less the surrender charge and any outstanding loans. This amount is available to the policy owner upon full surrender of the policy. Death Benefit The sum of death benefits of the base policy and any riders that offer an additional death benefit. Loans Money borrowed against the policy s cash value. A loan can be taken from the policy value at any time, subject to the maximum loan value in the contract. Loans are not required to be repaid while the policy is active unless the total of accumulated loans exceeds the maximum loan value. Loans will be reflected in the available net cash surrender value and the net death benefit. If loans are outstanding at the insured s death they will reduce the policy value or death benefit. Your policy offers the choice of either a Traditional Loan or Indexed Loan. Traditional Loans charge a variable interest rate that resets annually, but also credits interest on the loaned funds. The net cost of the loan will be 1 percent in policy years one through ten and zero starting in policy year 11.* Indexed Loans charge a fixed interest rate (6 percent during policy years one through ten and 5.5 percent after year ten) while the loan amount continues to earn interest at the same rate as the Indexed. The difference between the loan rate charged and the interest credited on loans depends on the performance of the Indexed s. Partial Surrender A partial surrender is a withdrawal from your policy s cash value. The policy death benefit will be reduced by the amount of the withdrawal and a charge of 2% of the amount withdrawn, up to a maximum of $25, will be accessed and treated as an additional withdrawal from the cash value and death benefit. Policy Value The total value in the policy, made up of premiums paid and credited interest, minus policy charges and partial surrenders. Policy Premium The amount of premium paid for the year for the base policy and any elected riders. Specified Amount The amount of coverage defined in your policy that is used to calculate your total death benefit and the amount of product charges assessed to the policy. * The 0% net cost in years 11+ is subject to change but guaranteed not to be more than 0.25% (0% in NY). 10

11 Options Key Terminology Fixed An account that provides a current interest rate guaranteed for one year from the date funds are allocated, and then guarantees an effective annual rate of at least 1%. Values cannot be transferred from this account until the policy anniversary or within 30 days following the anniversary. 12-Month Dollar Cost Averaging (DCA) that earns a fixed rate of interest for 12 months from the time of premium allocation and transfers funds monthly to the Indexed s over a 12 month period. Holding A temporary account that is used to hold funds until they transfer into the Indexed on the next segment date (a monthly anniversary of the policy date). Indexed s An account that credits interest based on the performance of a market index. Indexed interest is calculated based on the change in the index between two points in time, subject to a stated cap, participation rate and the minimum annual guaranteed floor. Indexed Terms Annual (1 Year) Point-to-Point Crediting Methodology This method credits interest based on the performance of a market index between two points in time, namely, the starting point and the end point one year later. Interest credits are locked in at the end of each segment year, and the starting point of the market index is then reset. has two 1 year Indexed s. 5 & 1 Blend Crediting Methodology This method has a 5 year segment term that credits indexed interest based on index performance between two points in time five years apart. There is also a determination of indexed interest based on annual point-to-point crediting for each of the one year segments within the five year segment term. Indexed Segment The Indexed is made up of indexed segments. Each premium payment or transfer of funds to the Indexed creates an indexed segment. A segment may only be created once a month on the segment date (a monthly anniversary of the policy date). Up to 12 indexed segments can be created in a policy year. Indexed segments that have not yet matured have no indexed earnings above the guarantee. Indexed Earnings The amount of interest credited to an indexed segment. It includes the crediting of monthly interest at the equivalent of the annual guarantee, as well as any additional interest earned for a matured segment. Interest Credited A column in the annual statement that shows the amount of interest credited to the Fixed, 12-Month Dollar Cost Averaging (DCA) and Indexed s. Participation Percentage The percentage of the participation in a market index s performance for a given time period, used to calculate the index credit for the Indexed s. The participation rate is guaranteed never to be less than 100%. Cap Percentage The maximum amount of interest that can be earned in an Indexed. This cap is subject to change, but is guaranteed to never be below the minimum. If a cap percentage changes, that change is effective only for new or renewed segments. Current Allocation Shows the percent allocation of future premiums between the Fixed, 12-Month Dollar Cost Averaging (DCA) and Indexed s. 11

12 Optional Benefits and Riders You may have elected one or more of the following benefits and riders on your policy. Provided below is a brief description of these riders. For complete information on the riders on your policy, please review your annual statement and contract for more details. Accidental Death Benefit Rider provides an additional death benefit if the insured dies as the result of an accident. Additional Insured Term Insurance Rider extends life insurance to a family member without obtaining an additional policy. Children s Term Insurance Agreement Rider can be purchased to cover all of your children, and each covered child is guaranteed the opportunity to convert their child coverage to a permanent policy when they reach age 23. Chronic Illness Accelerated Benefit Rider* allows access to a portion of the death benefit if the insured is diagnosed with a chronic illness. Please see your contract for full eligibility requirements for accessing the benefit. Disability Completion Benefit Rider waives policy charges and credits a pre-determined premium to policy cash values if disability occurs. Disability Waiver of Monthly Deductions Rider protects the policy if total disability occurs. Guaranteed Increase Option Rider allows you to increase your coverage at certain ages without having to submit medical evidence of insurability. Overloan Protection Rider can keep your coverage intact despite outstanding loans. Return of Premium Term Insurance Rider provides an added death benefit equal to premiums paid, up to the most recent anniversary. Supplemental Exchange Rider permits replacement of one of the insureds if a relationship changes without having to purchase a new. Supplemental Term Insurance Rider provides an additional death benefit while the rider is in force and improves long-term cash values. Surrender Benefit Enhancement Rider waives early surrender (cancellation) charges and guarantees that during the first 3 years, the policy value upon surrender of business-owned/business-sponsored policies will be equal to the premium paid. Waiver of Surrender Charges Rider waives early year policy surrender (cancellation) charges for business-owned/businesssponsored policies. * In TX: Long-Term Care Accelerated Benefit 12

13 Our Noble Purpose Since 1847, Penn Mutual has been driven by our noble purpose to create a world of possibilities, one individual, one family and one small business at a time. As an original pioneer of mutual life insurance in America, we believe that life insurance is the most protective, responsible and rewarding action a person can take to build a solid foundation today and create a brighter future for generations to come. Accumulation Builder ChoiceSM Indexed Universal Life is an indexed universal life insurance policy offered by The Penn Mutual Life Insurance Company. Product or features may not be available in all states. Policy form numbers ICC12-IFL and IFL-12. (Policy form numbers may vary by state.) All guarantees are based upon the claims-paying ability of the issuer. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage and will reduce the death benefit and policy values The Penn Mutual Life Insurance Company, Philadelphia, PA T /15 A3YK E3