Giving You Time to Plan While Dealing With Your Loss

Transcription

1 Giving You Time to Plan While Dealing With Your Loss Penn Mutual Beneficiary Account

2 The loss of someone close is extremely hard. Penn Mutual recognizes this may be a difficult time for you and as a result offers the option of receiving your full policy proceeds through the Penn Mutual Beneficiary Account. This account provides interest on the policy proceeds while giving you the time you may need during this period. What is the Penn Mutual Beneficiary Account? It s a draft account that is similar to an interest bearing checking account. Delivery of the draft book provides full payment of the policy proceeds. The Penn Mutual Life Insurance Company, Philadelphia, PA ( is the custodian of the funds and the account is administered by The Northern Trust Company, Chicago, IL

3 Is there interest earned on the proceeds in this account? Yes, interest is earned on proceeds in the Penn Mutual Beneficiary Account from the date a claim is processed. Interest earned on the Penn Mutual Beneficiary Account may be subject to tax, therefore you should consult a tax, investment or other financial advisor regarding tax liabilities and investment options. The balance in the account will earn interest at a rate determined weekly by The Penn Mutual Life Insurance Company. There is no SPECIFIC minimum rate guaranteed for the interest rate for this account, although the interest will equal or exceed the national average for bank money market accounts as measured by the Bank Rate Monitor National Index. The interest rate can change based on changes in market interest rates. The interest earned will be compounded daily and credited to the account monthly. This interest will be available for withdrawal on the day it has been credited. How can this account be used? The Penn Mutual Beneficiary Account is a draft account that allows you, as the account holder, to write drafts to anyone you wish. You have full control and you can write drafts for any amount over $250, up to the entire account balance. Withdrawals from the account are available based on normal financial institution timeframes for transactions. If you want access to the entire policy proceeds, you can write one draft for the total proceeds including interest.

4 Is there a minimum balance that must be maintained in the account? Yes, in order to keep the account open, a balance of $1,000 must be maintained. If the account balance falls below this amount, the account will be closed and a check for the balance will be sent to you as the account holder. Is there a limit to the number of withdrawals? There is no penalty and no limit to the number of withdrawals that can be taken within any period of time provided the account balance does not fall below $1,000. How is the fund balance and activity monitored in the Penn Mutual Beneficiary Account? Each month you will be mailed a statement showing balance, drafts written, interest credited, and any other activity. In the event a copy of a draft is needed, you can contact the Penn Mutual Beneficiary Account Customer Service Center and a photocopy will be forwarded to you at no cost. What fees are associated with the Penn Mutual Beneficiary Account? There are no monthly service charges or maintenance fees associated with the Penn Mutual Beneficiary Account, nor is there a charge for drafts written or recorded. However, service charges will be assessed for the following: n $10 for each draft written over the account balance n $15 for each stop payment

5 Are deposits allowed into this account? No, since the Penn Mutual Beneficiary Account is not a bank account, no deposits can be made into the account. What is the effect if the account is inactive? If an account is inactive during any continuous three-year period, Penn Mutual will return any remaining balance in the Penn Mutual Beneficiary Account. What happens to the proceeds in the account if something were to happen to the account holder? You as the account holder will have the opportunity to name a beneficiary to whom the money remaining in your Penn Mutual Beneficiary Account will be paid in the event of your death. If no beneficiary is named, all available proceeds will be paid to your estate. Are the funds guaranteed? The funds are guaranteed by the Penn Mutual Life Insurance Company. The Penn Mutual Beneficiary Account is not insured or guaranteed by the FDIC or any other government agency. Retained assets are guaranteed by state guaranty associations. To learn more about the coverage limitations impacting your beneficiary account, which can vary by state, you can contact the National Organization of Life and Health Guaranty Association at or go to their website at Penn Mutual holds assets that support the funds in the Beneficiary Account. Penn Mutual may derive income, in addition to any fees charged on the account, from the total gains received on the investment of the balance of funds in the account.

6 The Penn Mutual Life Insurance Company reserves the right to make changes in the terms and conditions of this account. Notice of changes will be sent to each account holder. You will have reasonable time to agree to these changes. Continuation of your account will confirm agreement to those changes. What other options are available for payment of the proceeds? In addition to the Penn Mutual Beneficiary Account, the settlement options offered in the policy continue to be available. You may elect the settlement options outlined below at any time until the entire balance is withdrawn, subject to any account limits, restrictions and rules pertaining to the options specified below. Settlement options include: I. Lump sum payment II. Interest Option (for life insurance contracts only) provides interest on proceeds left on deposit and will be paid periodically at a rate guaranteed in the policy or at the current rate fixed by the Board of Trustees, whichever is higher. Based on your policy, there is a $1,000 or $5,000 minimum required for this option. Please call a Penn Mutual Service Representative if you need to confirm the minimum requirement. III. Election Option (for Annuity contracts only) Available options include: 5-year Deferral, Spousal Continuation or Inherited (Stretch) IRA Election Options (availability varies based on contract). IV. Income Option not based on life expectancy which includes annuity certain, income for a fixed number of years (choice of 5-30 years) or income for a fixed amount.

7 V. Income Option based on Single Life for life, or a number of years (choice of 5-30 years). VI. Income Option based on Joint Lives for Joint Life Income, Joint and Survivor for elected period of years (choice of 5-30 years), Joint and Survivor Income which reduces upon death of either Option Annuitant (based on elected choice of 75%, 67% or 50%), Joint and Survivor Income which reduces upon death of either Option Annuitant (based on elected choice of 75%, 67% or 50%) for a period of years (based on elected choice of 5-30 years), Joint and Contingent Life Income reducing only upon the death of the Option Annuitant (based on elected choice of 75%, 67% or 50%) or Joint and Contingent Life Income reducing only upon the death of the Option Annuitant (based on elected choice of 75%, 67% or 50%) for a period of years (choice of 5-30 years). Under the settlement options V and VI, the current interest rates are updated monthly and are based on currently marketed Single Premium Immediate Annuity (SPIA) rates. The current rate is derived from investments currently available for the asset portfolio segment that supports the SPIA, less a margin. This rate is then modified by competition, sales, interest and lapse trends. Full information on these choices is provided in this information package. Specific details may be obtained by calling a Penn Mutual Representative at

8 The Penn Mutual Life Insurance Company The Penn Insurance and Annuity Company 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. If you have additional questions, please contact your Penn Mutual Financial Professional or call a Penn Mutual Client Service Representative at FOR FURTHER INFORMATION PLEASE CONTACT YOUR STATE DEPARTMENT OF INSURANCE. Services administered by The Northern Trust Company, P.O. Box Chicago, IL The Penn Mutual Life Insurance Company, Philadelphia, PA The Penn Mutual Beneficiary Account is not offered for policy proceeds less than $10,000 or in the states of Minnesota, New York, West Virginia, Kansas or Kentucky. All guarantees are based upon claim-paying ability of the issuer The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company, Philadelphia PA PM /12 A2JC E2