Guide to Reading the Indexed Account Performance Report Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL

Transcription

1 Guide to Reading the ed Account Performance Report Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL Your ed Account Performance Report provides performance detail on each indexed account segment that was created or matured during the last twelve months in your life insurance policy. It is produced on each policy monthly anniversary. To help you understand this report we have created this guide to familiarize you with the information shown and the key terms described. This guide walks through a sample performance report section-by-section to illustrate the key information shown. It also includes a glossary of key terms, as well as other information to help you understand the ed Account on your policy. Table of Contents About the ed Account... 2 Sample Performance Report... 3 Key Terminology... 6 Frequently Asked Questions

2 How the ed Account Works The ed Account on your policy offers strong interest growth potential up to a competitive cap (maximum crediting percentage). ed Life Insurance also offers the downside protection of a guaranteed floor (minimum crediting percentage) to ensure a positive return even when the market is down.* The indexed account credits interest based on the performance, excluding dividends, of the, one of the financial world s most widely recognized market indicators. How s are Created for the ed Account Each premium payment or transfer of account value into the ed Account creates a segment. You can have up to 12 segments created in a year, each beginning on a monthly policy anniversary. Each segment matures 1 year later on the segment anniversary and provides an annual lock-in of gains. To learn more about the ed Account available on your policy, please contact your financial professional or visit one of the sites listed below. (Accumulation Builder IUL) (Accumulation Builder II IUL) (Survivorship Plus IUL) * All guarantees are based on the claims paying ability of the issuer. 2

3 Sample ed Account Performance Report In this section of the guide we walk through a hypothetical ed Account Performance Report for a policy owner who purchased a policy on 12/1/2010. Please note, segments created on your policy that have not yet matured will have an N/A in certain fields because the ending index values have not yet been recorded and an index credit above the guaranteed interest has not yet been applied. The index values shown do not reflect actual results, and are not meant to depict actual performance of an index. Accumulation Builder II IUL ed Account Performance Report as of 12/01/2012 Policy Number: Detail on the segments created or matured for the ed Account This report provides performance detail on each account segment that was created or matured during the past 12 months as part of your life insurance policy. In addition to showing the values of the market index, it also provides the percent of the index performance that was credited and the total dollar amount of indexed earnings for each segment. s that have not yet matured will have an N/A in certain fields because the ending index values have not yet been recorded and an index credit above the guaranteed interest has not yet been applied. Maturity Beginning Value Value Growth ed Account Performance Summary Participation Cap Minimum Guaranteed Performance Credited Credit Total ed Earnings Value 12/01/10 12/01/11 1, , % 100% 13.0% 2.0% 3.2% $15.59 $9.30 $24.89 $ /01/11 01/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 02/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 03/01/12 1, , % 100% 13.0% 2.0% 5.2% $15.60 $24.86 $40.46 $ /01/11 04/01/12 1, , % 100% 13.0% 2.0% 6.5% $15.62 $35.16 $50.78 $ /01/11 05/01/12 1, , % 100% 13.0% 2.0% 3.3% $15.59 $9.95 $25.54 $ /01/11 06/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 07/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 08/01/12 1, , % 100% 13.0% 2.0% 6.9% $15.60 $37.97 $53.57 $ /01/11 09/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.63 $85.97 $ $ /01/11 10/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.59 $85.75 $ $ /01/11 11/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.66 $ $ $1, /01/11 12/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.71 $ $ $1, /01/12 01/01/13 1, N/A N/A 100% 13.0% 2.0% N/A $28.82 N/A N/A N/A 02/01/12 02/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $26.16 N/A N/A N/A 03/01/12 03/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $24.08 N/A N/A N/A Questions? Contact Jane E Doe or contact Penn Mutual Client Services Policy Number: WILLIAM PENN Page 1 of 2 Product name for the policy you own will display here. This guide will use a hypothetical Accumulation Builder II IUL policy as an example. 3

4 Sample ed Account Performance Accumulation Builder II IUL ed Account Performance Report as of 12/01/2012 Policy Number: This report provides performance detail on each account segment that was created or matured during the past 12 months as part of your life insurance policy. In addition to showing the values of the market index, it also provides the percent of the index performance that was credited and the total dollar amount of indexed earnings for each segment. s that have not yet matured will have an N/A in certain fields because the ending index values have not yet been recorded and an index credit above the guaranteed interest has not yet been applied. Maturity Beginning Value Value Growth ed Account Performance Summary Participation Cap Minimum Performance Guaranteed Credited Credit Total ed Earnings Value 12/01/10 12/01/11 1, , % 100% 13.0% 2.0% 3.2% $15.59 $9.30 $24.89 $ /01/11 01/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 02/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 03/01/12 1, , % 100% 13.0% 2.0% 5.2% $15.60 $24.86 $40.46 $ /01/11 04/01/12 1, , % 100% 13.0% 2.0% 6.5% $15.62 $35.16 $50.78 $ /01/11 05/01/12 1, , % 100% 13.0% 2.0% 3.3% $15.59 $9.95 $25.54 $ /01/11 06/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 07/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 08/01/12 1, , % 100% 13.0% 2.0% 6.9% $15.60 $37.97 $53.57 $ /01/11 09/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.63 $85.97 $ $ /01/11 10/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.59 $85.75 $ $ /01/11 11/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.66 $ $ $1, /01/11 12/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.71 $ $ $1, /01/12 01/01/13 1, N/A N/A 100% 13.0% 2.0% N/A $28.82 N/A N/A N/A 02/01/12 02/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $26.16 N/A N/A N/A 03/01/12 03/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $24.08 N/A N/A N/A Questions? Contact Jane E Doe or contact Penn Mutual Client Services Policy Number: WILLIAM PENN Page 1 of 2 The Performance Credited ed Account Performance Report as of 12/01/2012 Premiums (after a premium load) and account value are allocated to (Mature s Only) is based on the growth in the index adjusted for Policy Number: the segment on the segment date. participation, up to the cap percentage. Total dollar amount earned in the This The report segment provides matures performance one year detail on each account The segment minimum that interest was created rate or credited matured during will the past 12 months as part of your life insurance policy. segment. Includes Guaranteed In addition to showing the values of the market index, it also provides the percent of the index performance that was credited and the total dollar amount of indexed later (segment earnings for maturity each segment. date) s that have be not at least yet matured 2% will have an N/A in certain fields because the ending and index any values Credit. have not yet been recorded and an index credit above the guaranteed interest has not yet been applied. Maturity Beginning Value Value Growth ed Account Performance Summary Participation Cap 4 Minimum Performance Accumulation Builder II IUL Guaranteed Credited Credit Total ed Earnings Value 12/01/10 12/01/11 1, , % 100% 13.0% 2.0% 3.2% $15.59 $9.30 $24.89 $ /01/11 01/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 02/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 03/01/12 1, , % 100% 13.0% 2.0% 5.2% $15.60 $24.86 $40.46 $ /01/11 04/01/12 1, , % 100% 13.0% 2.0% 6.5% $15.62 $35.16 $50.78 $ /01/11 05/01/12 1, , % 100% 13.0% 2.0% 3.3% $15.59 $9.95 $25.54 $ /01/11 06/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ /01/11 07/01/12 1, , % 100% 13.0% 2.0% 2.0% $15.61 $0.00 $15.61 $ S&P Beginning & 08/01/11 08/01/12 1, , % 100% 13.0% 2.0% 6.9% $15.60 $37.97 $53.57 $ Values for each based 09/01/11 09/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.63 $85.97 $ $ on segment date and segment 10/01/11 10/01/12 1, , % 100% 13.0% 2.0% 13.0% $15.59 $85.75 $ $ maturity date 11/01/11 11/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.66 $ $ $1, /01/11 12/01/12 1, , % 100% 13.0% 2.0% 13.0% $31.71 $ $ $1, /01/12 01/01/13 1, N/A N/A 100% 13.0% 2.0% N/A $28.82 N/A N/A N/A 02/01/12 02/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $26.16 N/A N/A N/A 03/01/12 03/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $24.08 N/A N/A N/A Questions? Contact Jane E Doe

5 Sample ed Account Performance For Questions and More Information Accumulation Builder II IUL ed Account Performance Report as of 12/01/2012 Policy Number: Maturity Beginning Value Value Growth ed Account Performance Summary Participation Cap Minimum Performance Guaranteed Credited Credit Total ed Earnings Value 04/01/12 04/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $21.50 N/A N/A N/A 05/01/12 05/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $18.53 N/A N/A N/A 06/01/12 06/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $15.73 N/A N/A N/A 07/01/12 07/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $13.16 N/A N/A N/A 08/01/12 08/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $10.74 N/A N/A N/A 09/01/12 09/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $8.24 N/A N/A N/A 10/01/12 10/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $5.51 N/A N/A N/A 11/01/12 11/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $4.18 N/A N/A N/A 12/01/12 12/01/13 1, N/A N/A 100% 12.0% 2.0% N/A $0.00 N/A N/A N/A Questions? Contact Jane E Doe or contact Penn Mutual Client Services About the ed Account Performance Report For more information... on how to read this report and an explanation of terms, visit scan the image to the right, or contact Penn Mutual. S&P is a registered trademark of Standard & Poor s Financial Services LLC ( S&P ) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P and are trademarks of S&P and have been sublicensed for certain purposes by The Penn Insurance and Annuity Company and its affiliates. The is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by The Penn Insurance and Annuity Company and its affiliates. Penn Insurance and Annuity Company s Accumulation Builder II IUL is not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s) Policy Number: WILLIAM PENN Page 2 of 2 Gives you the contact information for your Financial Professional and where to go for more information 5

6 Key Terminology The following are some of the key terms that may be referenced in your policy or in your ed Account Performance Report. 12-month Dollar Cost Averaging Account A Fixed Account that can be used to direct fixed-dollar amounts to be allocated to the ed Accounts on a regular basis. Please note, this account is not shown in this report. 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. credits are locked in at the end of each segment year, and the starting point of the market index is then reset. Cap The maximum amount of interest that can be earned in an ed Account. 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. Fixed Account An account that provides a current interest rate that is guaranteed for one year and then guarantees an effective annual accumulation of at least 2%. Values cannot be transferred until the policy anniversary or within 30 days following the anniversary. Please note, this account is not shown in this report. Guaranteed Floor The minimum interest-crediting rate that is guaranteed by the ed Accounts. On an annual basis, the guaranteed minimum interest is 2 percent *(credited monthly). Holding Account A temporary account that is used to hold funds until they transfer into the ed Accounts on the monthly anniversary date. Please note, this account is not shown in this report. * 2% guaranteed floor only available with Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL. 6

7 Key Terminology from Performance Report (continued) ed Account An account that credits interest based on the performance of a market index. ed 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. Credit The amount of interest above the guaranteed interest credited on a segment based on the performance of a market index. Participation The percentage of the participation in a market index s performance for a given time period used to calculate the index credit for the ed Accounts. The participation rate is guaranteed never to be less than 100%. Period of time that is used to determine the amount of the Credit. s can only be created on monthly policy anniversary dates. s can be funded by transfers from another account, or amounts retained in segments following the previous Maturity. The Value at Maturity is used to start a new segment unless you transfer a portion of it to the Fixed Account. 1 Year Maturity The end date of the one-year period that is used to determine the amount of the Credit. 7

8 Frequently Asked Questions On which products is this ed Account Performance Report available? This version of the report is available on Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL. The reports available on Accumulation Builder Choice IUL and Diversified Growth VUL are slightly different than the version shown in this guide. Separate guides are available for tips on reading the ed Account Performance Report for those products. When is the indexed account performance report produced? The report is automatically generated electronically on your monthly policy anniversary. Why is there no index credit shown for a matured segment? Because the matured ed Account only received the floor on the segment, and no additional credit other than the guaranteed 2% interest was received*. This can occur if the value of the market index has declined since the segment start date. How do I access the report? Visit and access the Client Service Center from the Account Login / Register drop-down menu located in the top right corner. Why are there different cap percentages for different segments? The cap on the ed Account can change at any time, however the cap on an individual segment is locked-in at the beginning of the segment for the 1 year period. When can I transfer policy value between accounts? At the end of any segment year (maximum of 12 segments at any time), you transfer all or part of a segment to the Fixed Account. On the policy anniversary or within 30 days after the anniversary date, values in the Fixed Account can be transferred to the ed Account. * 2% guaranteed floor only available with Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL. If you have any questions, please contact your Financial Professional or Penn Mutual Client Services at

9 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 IUL, Accumulation Builder II IUL, and Survivorship Plus IUL are indexed universal life insurance policies offered by The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company, a wholly owned subsidiary of Penn Mutual. Products and features may not be available in all states. Policy form numbers: IFL-07(S), IFL-07(U), IALJ-08 (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. S&P is a registered trademark of Standard & Poor s Financial Services LLC ( S&P ) and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC ( Dow Jones ). These trademarks have been licensed for use by S&P Dow Jones Indices LLC. S&P and, are trademarks of S&P and have been sublicensed for certain purposes by The Penn Insurance and Annuity Company and its affiliates. The is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by The Penn Insurance and Annuity Company and its affiliates. Penn Mutual s Accumulation Builder IUL, Accumulation Builder II IUL, and Survivorship Plus IUL are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates and neither S&P Dow Jones Indices LLC, Dow Jones, S&P or their respective affiliates make any representation regarding the advisability of investing in such product(s) The Penn Mutual Life Insurance Company, Philadelphia, PA 19172, T3413 1/13 A2JC E2