Guide to Understanding the Annual Statement Universal Life Insurance Products

Transcription

1 Guide to Understanding Annual Statement Universal Life Insurance Products Universal Life Insurance policies provide flexible death benefit protection and potential for cash value accumulation. Your Annual Statement provides policy values as of policy anniversary date, as well as a history of activity on your Universal Life policy over last policy year. We have created this guide to help you understand your annual statement and key terms used to describe your policy. Table of Contents Sample Annual Statement...2 Key Terminology... 7 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 guide walks through a sample Annual Statement to show you layout and information presented. The first page includes a summary of key policy Information, while second page shows activity history by date, any loans taken on policy and important notices regarding your policy. Annual Statement for Policy # Policy Start Date: 09/01/2013 Policy Maturity Date: 09/01/2080 For additional information or questions, contact: WILLIAM PENN 789 SPRUCE STREET BENJAMIN FRANKLIN, CLU, ChFC FRANLKIN-RICHARDS AGENCY 123 MAIN STREET PHILADELPHIA PA or contact Penn Mutual Client Services Insured: WILLIAM PENN Primary Beneficiary: SALLY PENN Policy Summary Beginning of Policy Year End of Policy Year Year to Year Change Total Death Benefit $500, $500, Total Specified Amount $500, $500, Total Policy Value $5, $5, Total Cash Surrender Value $1, $1, Loan Balance Page 2 Level Death Benefit Option Activity Summary for Statement Period Beginning Policy Value Total Premiums Paid + $7, Total Interest Credited + $ Total Product Charges - $1, Partial Withdrawals - Ending Policy Value $5, Change in Policy Value $5, You have Penn Mutual's Protection Guard Universal Life, a Flexible Premium Adjustable Life Insurance policy. As of this statement date, your policy has following additional benefits: Overloan Protection Agreement Accelerated Benefit - Chronic Illness Accelerated Death Benefit Agreement Your policy has a cost basis of $7, A scheduled premium payment of $3, is due Annually. There was no loan activity on this policy during 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 The following are loan rates for current and previous calendar year. Note that loans are also credited interest daily. The credited interest is added directly into cash value of policy and helps offset loan interest rate. Please see your policy for details Loan Interest Rate 4.00% 2014 Loan Interest Rate 4.80% Activity History for Statement Period We are pleased to introduce your new, redesigned Guaranteed Protection Universal Life annual statetement! All of your policy details are more organized and easier to read with this new statement. For additional details, visit Policy Number: WILLIAM PENN Page 1 of 3 Page 1 Date Premiums Expense Charges Cost of Insurance Partial Total Interest Policy Value Withdrawals Credited 12/06/13 $1, $ $1, /12/13 $2, $ $3, /01/14 $ $ $9.72 $3, /01/14 $59.00 $38.65 $11.88 $2, /01/14 $59.00 $38.66 $10.42 $2, /27/14 $3, $ $6, /01/14 $59.00 $38.39 $13.39 $6, /01/14 $59.00 $38.40 $23.74 $6, /01/14 $59.00 $38.41 $24.25 $6, /01/14 $59.00 $38.41 $23.18 $5, /01/14 $59.00 $38.42 $23.67 $5, /01/14 $23.37 $5, Totals $7, $1, $ $ $5, There is no additional cost of insurance for any additional riders and benefits included with this policy. The maximum premium limit for following policy year is $114, Important Information on Coverage Duration Your life insurance coverage is in danger of lapsing on 10/01/2015 if you do not make additional premium payments. This is based on minimum guaranteed interest rate and on deduction of 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. This guide uses a hypotical Guaranteed Protection Universal Life policy as an example. Questions? Contact BENJAMIN FRANKLIN, Policy Number: WILLIAM PENN Page 2 of 3 2

3 Sample Annual Statement The final page includes declared interest rates and or important information about annual statement. Notice from State Insurance Department of New Jersey IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in future. You should not consider replacement of your policy or make changes in your coverage without requesting a current illustration. You may annually request, without charge, such an illustration by calling , writing to Penn Mutual at Philadelphia, PA 19172, or by calling your agent. If you do not receive a current illustration of your policy within 30 days from your request, you should contact your state insurance department. You have right to name a second person to receive duplicates of all lapse notices. You must notify us by certified mail, receipt requested, and change shall be effective not later than 10 business days from date of receipt. Please call if you have any questions. Declared Rates and Percentages The following are interest credited rates declared for Fixed Account options during statement period. Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Fixed Account Future rates may differ from declared rates listed above. Refer to your contract for more information. Unlock Life s Possibilities with Your Protection Guard Universal Life Insurance Policy In addition to providing permanent death benefit protection, your policy offers you 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 death benefit and policy values. Making loan repayments can help protect policy death benefit and values. are income tax free as long as policy is not a Modified Endowment Contract (MEC). Partial Surrenders can cause policy to become a MEC. will nullify no-lapse guarantee. About this Statement Your statement provides a history of activity on your policy for policy year ending on 09/01/2014. 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. For more information... on how to read this statement and an explanation of terms and benefits, visit scan image to right, or contact Penn Mutual. Policy Number: WILLIAM PENN Page 3 of 3 Page 3 3

4 Sample Annual Statement - Page 1 WILLIAM PENN 789 SPRUCE STREET Annual Statement for Policy # Policy Start Date: 09/01/2013 Policy Maturity Date: 09/01/2080 For additional information or questions, contact: BENJAMIN FRANKLIN, CLU, ChFC Annual Statement for Policy # FRANLKIN-RICHARDS AGENCY 123 MAIN For STREET Policy Period 09/01/2013 through 09/01/2014 Policy PHILADELPHIA Start Date: PA 09/01/ Policy Maturity Date: 09/01/ For additional information or questions, contact: WILLIAM PENN or BENJAMIN contact FRANKLIN, Penn Mutual CLU, Client ChFCServices 789 SPRUCE STREET FRANLKIN-RICHARDS Annual Statement AGENCY for Policy # MAIN STREET PHILADELPHIA Guaranteed For Policy Period 09/01/2013 PA Protection through 09/01/2014 UL Insured: WILLIAM PENN Policy Start Date: 09/01/2013 Policy Maturity Date: 09/01/ Primary Beneficiary: SALLY PENN Annual Statement for Policy # For additional information or questions, contact: or contact Penn Mutual Client Services Policy Summary Policy Start Date: 09/01/2013 Policy Maturity Date: 09/01/2080 WILLIAM PENN BENJAMIN FRANKLIN, CLU, ChFC 789 SPRUCE STREET Beginning of Policy Year FRANLKIN-RICHARDS For additional End of Policy information Year AGENCYor questions, Year to Year contact: Change 123 MAIN STREET Insured: WILLIAM Total PENN WILLIAM PENN Death Benefit $500, PHILADELPHIA BENJAMIN FRANKLIN, $500, PA 19172CLU, ChFC Primary Beneficiary: SALLY PENN 789 SPRUCE Total STREET FRANLKIN-RICHARDS AGENCY Specified Amount $500, $500, MAIN STREET Total Policy Value Policy Summary or PHILADELPHIA contact Penn PA $5, Mutual Client Services $5, Total Cash Surrender Value Beginning of Policy Year End of Policy $1, Year Year to Year Change $1, Total Death Loan Balance Benefit $500, or contact Penn $500, Mutual Client Services Insured: WILLIAM PENN Primary Level Death Beneficiary: Benefit Total Option Specified SALLY PENN Amount $500, $500, Insured: Activity WILLIAM Summary PENN Total Policy Value $5, $5, for Statement PeriodPolicy Summary You have Penn Mutual's Protection Guard Universal Life, Primary Beneficiary: Total Cash Surrender SALLY PENN Value a Flexible Premium $1, Adjustable Life Insurance policy. $1, Beginning Policy Value Beginning of Policy Year End of Policy Year Year to Year Change Loan Balance As of this statement date, your policy has following Total Premiums Total Death Paid Benefit + $7, $500, Policy Summary $500, additional benefits: Level Death Benefit Option Total Total Interest Specified Credited Amount Beginning + $ of $500, Policy Year End of Policy Overloan Protection $500, Year Year to Year Change Agreement Activity Total Product Summary Total Total Death Charges Policy for Benefit Value Statement Period - $1, $500, You Accelerated have Penn Mutual's Benefit $500, $5, Protection Chronic Illness Guard Universal $5, Life, a Flexible Accelerated Premium Death Adjustable Benefit Agreement Life Insurance policy. Beginning Total Partial Total Cash Specified Withdrawals Policy Surrender Value Amount Value - $500, $500, $1, $1, Total Your As of policy this statement has a cost date, basis your of $7, policy has following Ending Premiums Total Policy Loan Policy Value Paid Balance Value + $7, $5, $5, additional benefits: $5, Level Death Change Total Benefit Interest Cash in Option Policy Surrender Credited Value Value + $5, $ A scheduled Overloan premium Protection $1, payment Agreement of $3, is due Annually. $1, Total Product Loan Charges Balance - $1, Accelerated Benefit - Chronic Illness Activity Summary for Statement Period You Accelerated have Penn Mutual's Death Benefit Protection Agreement Guard Universal Life, Level Death Benefit Partial Option Withdrawals - a Flexible Premium Adjustable Life Insurance policy. Beginning Policy Value Your policy has a cost basis of $7, Ending Policy Value $5, As of this statement date, your policy has following Activity Total Summary Premiums Paid for Statement Period + $7, You have Penn Mutual's Protection Guard Universal Life, additional benefits: Change in Policy Value $5, A a scheduled Flexible Premium premium Adjustable payment of $3, Life Insurance is due policy. Annually. Total Beginning Interest Policy Credited Value + $ Overloan Protection Agreement As of Total We Product are pleased Chargesto introduce your - $1, Accelerated this statement Benefit date, - Chronic your policy Illness has following Total Premiums Paid + $7, new, redesigned additional Guaranteed Protection Universal Life annual Accelerated benefits: Death Benefit Agreement Total Partial Interest statetement! Withdrawals Credited All of your policy details + $ are more organized Overloan and Protection easier to Agreement read with this new statement. For additional details, visit Your Total policy has a cost basis of $7, Ending Product Policy Charges Value - $5, $1, Accelerated Benefit - Chronic Illness Accelerated Death Benefit Agreement Policy Change Number: Partial in Withdrawals Policy Value WILLIAM PENN $5, A scheduled premium payment of $3, is due Annually. Page 1 of 3 Your policy has a cost basis of $7, Ending We are Policy pleased Value to introduce your $5, new, redesigned Guaranteed Protection Universal Life annual Change statetement! in Policy Value All of your policy details $5, are more organized and easier to read with this new statement. A scheduled premium payment of $3, is due Annually. For additional details, visit Policy Number: WILLIAM PENN Page 1 of 3 We are pleased to introduce your new, redesigned Guaranteed Protection Universal Life annual statetement! All of your policy details are more organized and easier to read with this new statement. For additional details, visit We are pleased to introduce your new, redesigned Guaranteed Protection Universal Life annual statetement! All of your policy details are more organized and easier to read with this new statement. Policy Number: WILLIAM PENN Page 1 of 3 For additional details, visit Policy Number: WILLIAM PENN Page 1 of 3 Includes your: Financial Professional s contact information Policy start and maturity dates Insured and primary beneficiary information. Lists your policy: Specified Amount Policy Value Cash Surrender Value Death Benefit Outstanding loan balance if applicable. Details: Premium payments Activity during statement period Interest Credited Product Charges Included benefits and riders Policy type. Includes informational messaging particular to your policy. 4

5 Sample Annual Statement - Page 2 There was no loan activity on this policy during The following are loan rates for current and previous statement There was no period. loan Your activity policy on this offers policy access during to policy calendar The following year. are Note loan that rates loans for are also current credited and interest previous values statement through period. partial Your Withdrawals policy offers or access loans. to If policy you daily. calendar The year. credited Guaranteed Note interest that loans is added are Protection also directly credited into interest cash UL are values interested through in partial additional Withdrawals information, loans. contact If you your value daily. of The credited policy and interest helps is offset added directly loan interest into rate. cash Financial are interested Professional in additional or Penn information, Mutual Client contact Services yourat Please value of see For your policy Policy policy and Period for helps details. offset 09/01/2013 loan through interest 09/01/2014 rate Financial Professional or Penn Mutual Client Services at Please see your policy for details Loan Interest Rate 4.00% 2013 Loan Interest Rate 4.00% 2014 Loan Interest Rate 4.80% There was no loan activity on this policy during The following are 2014 loan Loan rates Interest for Rate current and previous 4.80% statement period. Your policy offers access to policy calendar year. Note that loans are also credited interest values through partial Withdrawals or loans. Activity If you History for daily. Statement The credited Periodinterest is added directly into cash are interested in additional information, Activity contact History your for value Statement of policy Periodand helps offset loan interest rate. Date Premiums Expense Charges Cost of Insurance Partial Total Interest Policy Value Date Financial Professional Premiums or Penn Mutual Expense Client Charges Services Cost of at Insurance Please see your Withdrawals Partial policy for details. Total Credited Interest Policy Value Withdrawals 2013 Loan Interest CreditedRate 12/06/13 $1, $ $1, % 12/06/13 12/12/13 $1, $2, $ $ Loan Interest Rate $1, $3, % 12/12/13 01/01/14 $2, $ $ $ $9.72 $3, $3, /01/14 02/01/14 $ $ Activity $59.00 History for $38.65 Statement Period $9.72 $11.88 $3, $2, /01/14 $59.00 $38.65 $11.88 $2, /01/14 $59.00 $38.66 $10.42 $2, Date Premiums Expense Charges Cost of Insurance Partial Total Interest Policy Value 03/01/14 $59.00 $38.66 $10.42 $2, /27/14 $3, $ Withdrawals Credited $6, /27/14 04/01/14 12/06/13 $3, $1, $ $ $59.00 $38.39 $13.39 $6, $6, $1, /01/14 05/01/14 12/12/13 $2, $59.00 $ $59.00 $38.39 $38.40 $13.39 $23.74 $6, $6, $3, /01/14 06/01/14 01/01/14 $59.00 $ $59.00 $38.40 $ $38.41 $23.74 $24.25 $9.72 $6, $6, $3, /01/14 07/01/14 02/01/14 $59.00 $59.00 $38.41 $38.41 $38.65 $24.25 $23.18 $11.88 $6, $2, $5, /01/14 03/01/14 08/01/14 $59.00 $59.00 $38.41 $38.66 $38.42 $23.18 $23.67 $10.42 $5, $5, $2, /01/14 09/01/14 03/27/14 $3, $59.00 $ $38.42 $23.67 $23.37 $5, $5, $6, /01/14 04/01/14 Totals $7, $1, $59.00 $ $38.39 $23.37 $ $13.39 $5, $5, $6, Totals $7, $1, $ $ $5, /01/14 $59.00 $38.40 $23.74 $6, There is no additional cost of insurance for any additional riders and benefits included with this policy. There maximum 06/01/14 is no additional premium cost limit of for insurance following for any $59.00 policy additional year riders is $114, and $38.41 benefits included with this policy. $24.25 $6, The maximum 07/01/14 premium limit for following $59.00 policy year is $114, $38.41 $23.18 $5, Important Information on Coverage Duration 08/01/14 $59.00 $38.42 $23.67 $5, Important Information on Coverage Duration Your 09/01/14 life insurance coverage is in danger of lapsing on 10/01/2015 if you do not make additional premium $23.37 payments. $5, This Your is life based insurance on coverage minimum is guaranteed in danger of interest lapsing rate on 10/01/2015 and on deduction if you do of not make maximum additional expense premium charges payments. Totals $7, $1, $ $ (which $5, may This is not based occur). on We strongly minimum suggest guaranteed you contact interest your rate financial and on deduction professional or Penn maximum Mutual expense Client Services charges to (which help There ensure may is not your occur). additional policy We cost will strongly of remain insurance suggest good for you any standing. additional contact your riders financial and benefits professional included or with Penn this Mutual policy. Client Services to help The ensure maximum your premium policy will limit remain for in following good standing. policy year is $114, Important Information on Coverage Duration Your life insurance coverage is in danger of lapsing on 10/01/2015 if you do not make additional premium payments. This is based on minimum guaranteed interest rate and on deduction of 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. Questions? Questions? Contact BENJAMIN FRANKLIN, or Contact Penn Mutual BENJAMIN FRANKLIN, (M-F 8:30 a.m. to 6:00 p.m. Eastern) Policy Number: WILLIAM PENN Page 2 of 3 Policy Number: WILLIAM PENN Page 2 of 3 Questions? Contact BENJAMIN FRANKLIN, Policy Number: WILLIAM PENN Page 2 of 3 Provides detail on any loan activity. For more information on loans, see key terminology section. Summarizes monthly account activity by activity date, including: Premium payments Product Charges Any Partial Surrenders Policy Value on each date If your coverage is in danger of lapsing in near future, a message will appear in your statement. It will notify you of potential lapse date if you do not make additional premium payments and is based on crediting of minimum guaranteed interest rate and deduction of maximum charges. 5

6 Sample Annual Statement - Page 3 Notice from State Insurance Department of New Jersey For Guaranteed Policy Period 09/01/2013 Protection through 09/01/2014 UL IMPORTANT POLICY OWNER Notice NOTICE: from You should State consider Insurance requesting Department more For of detailed Policy New Period Jersey information 09/01/2013 about through your policy 09/01/2014 to understand how it may perform in future. You should not consider replacement of your policy or make changes in IMPORTANT your coverage POLICY without OWNER requesting Notice NOTICE: from a You current should State illustration. consider Insurance You requesting Department may annually more of detailed request, New Jersey information without charge, about such your anpolicy to illustration understand by how calling it may , perform in writing future. to You Penn should Mutual not at consider Philadelphia, replacement PA 19172, of or your by calling policy or your make agent. changes If you do in IMPORTANT your not receive coverage POLICY a current without OWNER Notice illustration requesting NOTICE: from of a You your current should State policy illustration. consider Insurance within 30 You requesting Department days may from annually more detailed of New your request, information Jersey you without should charge, about contact such your your anpolicy to state insurance illustration understand department. by how calling it may , perform in writing future. to You Penn should Mutual not at consider Philadelphia, replacement PA 19172, of your by calling policy or your make agent. changes IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy If you to You do in your not have receive coverage right a current without to name illustration requesting a second of a person your current policy illustration. to receive within duplicates 30 You days may from annually of all your lapse request, request, notices. you without You should charge, must notify contact such us your an understand how it may perform in future. You should not consider replacement of your policy or make by certified state changes mail, insurance illustration receipt department. by calling , writing to Penn Mutual at Philadelphia, PA 19172, or by calling your agent. If you your coverage requested, without and requesting change a current shall be illustration. effective not You later may than annually 10 business request, days without from charge, date of such receipt. an Please You do not have receive call right a current to name illustration if a you second of have person your policy any questions. to receive within duplicates 30 days from of all your lapse request, notices. you You should must notify contact us your by certified state illustration by calling , writing to Penn Mutual Philadelphia, PA 19172, or by calling your agent. If you mail, insurance receipt department. do not receive requested, a current and illustration change of your shall policy be effective within not 30 days later from than your 10 business request, days you from should contact date of your receipt. state Please You have call right to name if a you second have person any questions. to receive duplicates of all lapse notices. You must notify us by certified insurance department. mail, receipt requested, and change shall Declared be effective Rates not and later Percentages than 10 business days from date of receipt. You have right to name a second person to receive duplicates of all lapse notices. You must notify us by certified The Please following call are interest if credited you have rates any declared questions. mail, receipt requested, and change Declared shall be for effective Rates Fixed and not Account Percentages later options than 10 during business days statement from period. date of receipt. Please call Sep if you have Oct any Nov questions. Dec Jan Feb Mar Apr May Jun Jul The following are interest credited rates declared Declared for Rates Fixed and Account Percentages options during statement period. Aug Sep Fixed Account The following are interest credited Sep Oct rates declared Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Declared for Rates Fixed and Account Percentages options during statement period. Future Fixed rates Account may differ from declared 4.75 rates listed 4.75 above Refer to 4.75 your contract 4.75for more 4.75information The following are interest Sep credited Oct rates declared Nov Dec for Jan Fixed Account Feb options Mar during Apr May statement Jun period. Jul 4.75 Aug 4.75 Sep Future Fixed rates Account may differ Unlock from declared Life s 4.75 Possibilities rates Seplisted 4.75 Oct above. with 4.75 Refer NovYour to 4.75 your Dec Protection contract 4.75 Jan for more 4.75 Guard Feb information Universal Mar 4.75 AprLife 4.75 May Insurance 4.75 Jun Policy 4.75 Jul 4.75 Aug Future Fixed In addition rates Account may to differ Unlock providing from declared Life s permanent Possibilities rates 4.75listed 4.75 death above. with Refer 4.75 benefit Your to your 4.75 protection, Protection contract 4.75 for more 4.75 your Guard information policy Universal offers you Life Insurance opportunity Policy to build cash 4.75 Sep 4.75 value that can help you achieve goals during your lifetime, such as college funding, a more comfortable retirement, Future rates may differ from declared rates listed above. Refer to your contract for more information. starting In addition a business, to Unlock providing and Life s much permanent Possibilities more. death with benefit Your protection, Protection your Guard policy Universal offers you Life Insurance opportunity Policy to build cash value that can help you achieve goals during your lifetime, such as college funding, a more comfortable retirement, Your starting In addition policy a business, to Unlock providing Life s cash value and can much permanent Possibilities also more. death with benefit Your protection, Protection your Guard policy offers Universal you Life opportunity Insurance to Policy build cash provide a financial safety net if you face an unexpected financial hardship. Talk to your value that can help you achieve goals during your lifetime, such as college funding, a more comfortable retirement, Penn Mutual Financial Professional about maximizing your policy s strong cash value accumulation potential. Your starting In addition policy a business, to providing cash value and can much permanent also more. death benefit protection, your policy offers you opportunity to build cash value that can help you achieve provide goals during a financial your safety lifetime, net such if you as face college an unexpected funding, a more financial comfortable hardship. retirement, Talk to your Accessing Penn Mutual cash values Financial may result Professional in surrender about fees and maximizing charges, may your require policy s additional strong premium cash payments value to accumulation maintain coverage potential. and will reduce death Your starting benefit policy a business, and cash policy value and values. can much Making also loan provide more. repayments a financial can help safety protect net policy if you death face benefit an unexpected and values. financial are income hardship. tax free as Talk long to asyour policy is not a Modified Endowment Contract (MEC). Partial Surrenders can cause policy to become a MEC. will nullify no-lapse Accessing Penn Mutual cash values Financial may result Professional in surrender about fees and maximizing charges, may your require policy s additional strong premium cash payments value to accumulation maintain coverage potential. and will reduce guarantee. death Your benefit policy and cash policy values. can Making also loan provide repayments a financial can help protect safety net policy if you death face benefit an and unexpected values. financial are income hardship. tax free as Talk long as to your Accessing Penn policy Mutual is cash not a values Modified Financial may Endowment result Professional in surrender Contract fees about (MEC). and maximizing charges, Partial Surrenders may require your can additional policy s cause premium strong policy payments to cash become value to a maintain MEC. accumulation coverage will nullify and potential. will reduce no-lapse guarantee. death benefit and policy values. Making loan repayments can About help protect this Statement policy death benefit and values. are income tax free as long as Accessing policy is cash not a values Modified may Endowment result in surrender Contract fees (MEC). and Partial charges, Surrenders may require can additional cause premium policy to payments become a to MEC. maintain coverage will nullify and will no-lapse reduce guarantee. death benefit and policy values. Making loan repayments can help protect policy death benefit and values. are income tax free as long as Your statement provides a history of activity About on this Statement policy is not a Modified Endowment Contract (MEC). Partial Surrenders For can cause more information policy to become a MEC.... will nullify no-lapse your guarantee. policy for policy year ending on 09/01/2014. on how to read this statement and an Please Your statement review this provides statement a history and contact of activity Penn About Mutual on this Statement explanation For more information of terms and benefits,... visit if your you policy have any for questions. policy year You ending should on retain 09/01/2014. this on how to read this statement scan and an statement Please Your statement review for this provides your statement a history personal records, and contact of activity but note Penn that Mutual About on this this image explanation For Statement more information to of right, terms or and contact benefits,... Pennvisit statement if your you policy have should any for questions. policy year not be used You ending for should on tax-filing retain 09/01/2014. purposes. this Mutual. on how to read this statement scan and an statement Please Your statement review for this provides your statement a history personal records, and contact of but note Penn activity that Mutual on this image explanation For more to of information right, terms or and contact benefits,... Pennvisit statement if your have policy should any for questions. policy not be used You year for should ending tax-filing retain on 09/01/2014. purposes. this Mutual. on how to read this statement scan and an statement Please review for your this personal statement records, and contact but note Penn that Mutual this image explanation to right, of terms or contact and benefits, Penn visit statement if you have should any questions. not be used You for should tax-filing retain purposes. this Mutual. scan statement for your personal records, but note that this image to right, or contact Penn statement should not be used for tax-filing purposes. Mutual. Policy Number: or Penn Mutual WILLIAM PENN (M-F 8:30 a.m. to 6:00 p.m. Eastern) Page 3 of 3 Policy Number: or Penn Mutual WILLIAM PENN (M-F 8:30 a.m. to 6:00 p.m. Eastern) Page 3 of 3 Policy Number: WILLIAM PENN Page 3 of 3 Policy Number: WILLIAM PENN Page 3 of 3 Provides applicable state specific information about your policy. Details interest credited rates declared by month for statement period. Provides details about one of key features of your policy, cash value accumulation potential. Describes 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 code will take you directly to a webpage that has more information. 6

7 Key Terminology The following are some of key terms referenced in your Annual Statement. For a more detailed description of terms, please review your Universal Life policy. Policy Terms Cash Surrender Value The policy value less surrender charge and any outstanding loans. This amount is available to policy owner upon full surrender of policy. Death Benefit The sum of death benefits of base policy and any riders that offer an additional death benefit. Money borrowed against policy s cash value. A loan can be taken from policy value at any time, subject to maximum loan value in contract. are not required to be repaid while policy is active unless total of accumulated loans exceeds maximum loan value. will be reflected in available net cash surrender value and net death benefit. If loans are outstanding at insured s death y will reduce policy value or death benefit. Partial Surrender A partial surrender is a withdrawal from your policy s cash value. The policy death benefit will be reduced by amount of withdrawal and a charge of 2% of amount withdrawn, up to a maximum of $25, will be accessed and treated as an additional withdrawal from cash value and death benefit. Policy Value The total value in policy, made up of premiums paid and credited interest, minus policy charges and partial surrenders. Policy Premium The amount of premium paid for year for 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 amount of product charges assessed to policy. 7

8 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 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. Universal life insurance policies offered by The Penn Mutual Life Insurance Company. Products and features may not be available in all states. Policy form numbers may vary by product and state. All guarantees are based upon claims-paying ability of issuer. Accessing cash values may result in surrender fees and charges, may require additional premium payments to maintain coverage and will reduce death benefit and policy values The Penn Mutual Life Insurance Company, Philadelphia, PA T /14 A4CM E2