Guide to Reading the Guaranteed Choice Whole Life Annual Statement

Transcription

1 Guide to Reading the Annual Statement combines the valuable guarantees of whole life insurance with the flexibility to meet your evolving needs and help ensure a lifetime of possibilities. It offers guaranteed death benefit protection, guaranteed steady cash accumulation and guaranteed level premiums. It also provides dividends, which are not guaranteed, but add to the policy s cash values. Your Annual Statement provides policy values as of the policy anniversary date, as well as a history of the activity on your whole 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... 6 Optional Benefits and Riders...7 If you have any questions, please contact your Financial Professional or Penn Mutual Client Services at

2 Sample Annual Statement This section of the guide walks through a sample Flexible Choice Whole Life 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 gets into more transaction detail. In some cases your Annual Statement may be three pages in length. 789 SPRUCE ST SPRINGFIELD PA Annual Statement for Policy # Policy Start Date: 01/14/2014 Policy Maturity Date: 01/14/2098 For additional information or questions, contact: BENJAMIN FRANKLIN, CLU, ChFC, AEP FRANKLIN-RICHARDS AGENCY SUITE MAIN STREET PHILADELPHIA PA or contact Penn Mutual Client Services ww.pennmutual.com Insured: Primary Beneficiary: SALLY PENN Benefits and Values Death Benefit Cash Value You have Penn Mutual's, which is a Whole Life policy. Your policy payment period is 50 years (01/14/2064). Base Policy Paid-Up Additions from Paid-Up Additions Rider $1,315, $682, $0.00 $137, Policy Summary Face Amount $3,946, As of this statement date, your policy has the following additional benefits: Paid-Up Additions from Dividends Flexible Protection - Paid-Up Additions $10, $100, $2, $9, Overloan Protection Benefit Net Death Benefit * $3,889, Flexible Protection ($2,631,332) Net Cash Value * $91, Accelerated Permanent Paid Up Additions (ends 01/14/2024) Flexible Protection - Term $1,837, $3,946, N/A $149, Loan Balance $57, Accelerated Death Benefit LESS Outstanding Loans $57, $57, balance has been these values. Net $3,889, $91, * The outstanding loan subtracted from Upcoming Scheduled Payments Activity Summary for Period Dividends Loans Scheduled Payments (paid Annual) Premium Payments Made $26, Beginning Loan Balance $ Dividend of $2, awarded on 01/14/2015. Policy Premium $26, Paid-Up Addition Rider Payments Made $73, New Loans + $77, Annual Payment $26, Dividends Earned $2,081.31Your dividend was used as follows: $2, to Loan Interest + $ purchase $10, of Paid-Up Additions. Your future Your policy is scheduled to begin the automated premium offset program in Dividend & Paid-Up Additions $ years(01/14/2024). dividend awards will purchase Paid-Up Additions. If Repayments - $20, Surrenders you wish to change this option, please contact Penn Ending Loan Balance $57, You have paid $73, towards your Paid-Up Additions Rider New Loans & Interest $78,402.86Mutual. Payment Requirement of $36, To keep your rider active 2015 Loan Interest Rate you must pay $36, by 12/14/2018. Payment of this balance Loan Repayments Applied in Period $20, % The payment and amount of will, at a minimum, keep your rider active until 12/14/2019. You can pay up to $0.00 into your PUA Rider during the next dividends are not guaranteed Loan Interest Rate 5.00% statement period. Notice from the State Insurance Department of Pennsylvania IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in the future. You should not consider replacement of your policy or make changes Guaranteed in your coverage Choice without Whole requesting Life a current illustration. You may annually request, without charge, such an This is your first annual statement for. The statement provides a illustration by calling , writing to Penn Mutual, PO Box 178, Philadelphia, PA 19105, or by calling your snapshot of the previous policy year. It includes a concise summary of key information on the front agent. If you do not receive a current illustration of your policy within 30 days from your request, you should contact page, with more detailed transaction activity thereafter. your state insurance department. For additional details, visit About this Statement Page 1 of 3 Policy Number: Your statement provides a history of the activity on For more information... your policy for the policy year ending on 01/14/2015. on how to read this statement and an Please review this statement and contact Penn Mutual explanation of terms and benefits, visit if you have any questions. You should retain this scan statement for your personal records, but note that this the image to the right, or contact Penn statement should not be used for tax-filing purposes. Mutual. Policy Number: Page 2 of 3 Policy Number: Page 3 of 3 2

3 Sample Annual Statement Page 1 Annual Statement for Policy # Policy Start Date: 01/14/2014 Policy Maturity Date: 01/14/2098 For additional information or questions, contact: Annual Statement for Policy # BENJAMIN For FRANKLIN, Policy Period CLU, 01/14/2014 ChFC, AEP through 01/14/ SPRUCE ST Policy FRANKLIN-RICHARDS Start Date: 01/14/2014 AGENCY Policy Maturity Date: 01/14/2098 SPRINGFIELD PA Guaranteed SUITE For MAIN additional STREET information Choice or questions, Whole contact: Life PHILADELPHIA Annual PA Statement for Policy # Guaranteed BENJAMIN For FRANKLIN, Policy Period Choice CLU, 01/14/2014 ChFC, AEP Whole through 01/14/2015 Life 789 SPRUCE ST Policy FRANKLIN-RICHARDS AGENCY SPRINGFIELD PA SUITE Annual Start Date: 1776 Statement 01/14/2014 Policy for Maturity Policy Date: # /14/ For MAIN additional For STREET Policy information Period 01/14/2014 or questions, through contact: 01/14/2015 Policy or contact Penn Mutual Client Services PHILADELPHIA Start Date: 01/14/2014 PA Policy Maturity Date: 01/14/2098 Insured: ww.pennmutual.com For BENJAMIN additional FRANKLIN, information CLU, or ChFC, questions, AEP contact: Primary 789 SPRUCE Beneficiary: ST SALLY PENN FRANKLIN-RICHARDS AGENCY SPRINGFIELD PA SUITE 1776 BENJAMIN FRANKLIN, CLU, ChFC, AEP 123 or contact MAIN STREET You 789 have SPRUCE Penn ST Mutual's, which is FRANKLIN-RICHARDS Penn Mutual a Whole Life policy. AGENCY Client Services Your policy payment period is PHILADELPHIA PA ww.pennmutual.com Insured: years SPRINGFIELD (01/14/2064). WILLIAM PA PENN SUITE 1776 Primary Beneficiary: SALLY PENN 123 MAIN STREET PHILADELPHIA PA Policy Summary As of this statement date, your policy has the following You have Penn additional benefits: Mutual's Face Amount Guaranteed Choice $3,946, Whole Life, which is a or Whole contact Life Penn policy. Mutual Your Client policy Services payment period is 50 Insured: years (01/14/2064). Overloan Protection ww.pennmutual.com Benefit Primary Beneficiary: Net Death SALLY Benefit PENN * $3,889, or Flexible contact Protection Penn Mutual ($2,631,332) Client Services Net Cash Value * $91, Accelerated Permanent Paid Up Additions (ends Insured: Policy Summary As of this statement ww.pennmutual.com date, your policy has the following 01/14/2024) Primary additional benefits: You have Beneficiary: Penn Mutual's Loan Face SALLY Amount Balance Guaranteed PENN Choice $3,946, Whole $57, Life, which is a Accelerated Whole Life Death policy. Benefit Your policy payment period is 50 years (01/14/2064). Overloan Protection Benefit * The outstanding Net loan Death balance Benefit has been * subtracted from $3,889, these values. Flexible Protection ($2,631,332) You have Penn Mutual's, which is a Whole Net Cash Value * $91, Accelerated Life policy. Permanent Your policy Paid Up payment Additions period (ends is 50 years (01/14/2064). Upcoming Policy Scheduled Summary Payments As of this statement Activity date, Summary your policy for Period has the following Loan Balance $57, additional 01/14/2024) benefits: Scheduled Face Payments Amount (paid Annual) $3,946, Accelerated Premium Payments Death Benefit Made Policy Summary As of Overloan this statement Protection date, Benefit your policy has the following $26, * The outstanding loan balance has been subtracted from these values. Policy Premium Net Death Benefit * $3,889, $26, additional Paid-Up Flexible Addition benefits: Protection Rider ($2,631,332) Payments Made Face Amount $73, $3,946, Annual Upcoming Payment Net Cash Scheduled Value * Payments$26, $91, Overloan Accelerated Dividends Protection Permanent Activity Earned Summary Benefit Paid Up Additions (ends for Period Net Death Benefit * $2, $3,889, Flexible 01/14/2024) Protection ($2,631,332) Your policy is scheduled Scheduled Loan to begin Payments Balance the automated (paid premium Annual) offset $57, program in Dividend Accelerated Premium & Paid-Up Payments Death Additions Benefit Made $26, $ years(01/14/2024). Net Cash Value * $91, Accelerated Permanent Paid Up Additions (ends * The outstanding loan balance has been subtracted from these values. Policy Premium $26, Paid-Up Surrenders 01/14/2024) Addition Rider Payments Made $73, Loan Balance $57, You have paid $73, towards your Paid-Up Additions Rider Annual Payment $26, New Accelerated Loans Dividends & Interest Death Benefit Upcoming Scheduled Payments Activity Earned Summary for Period $78, $2, * The Payment outstanding Requirement loan balance of has $36, been subtracted To keep from your these rider values. active Your you must policy is pay scheduled $36, to begin by the 12/14/2018. automated Payment premium offset this program balance in Loan Dividend Repayments & Paid-Up Applied Additions in Period $20, Scheduled Payments (paid Annual) Premium Payments Made $26, $ will, years(01/14/2024). at a minimum, Upcoming keep Scheduled your rider active Payments until 12/14/2019. SurrendersActivity Summary for Period You Policy can Premium pay up to $0.00 into your PUA Rider during $26, the next Paid-Up Addition Rider Payments Made $73, statement You have paid period. Scheduled $73, Payments towards (paid your Paid-Up Annual) Additions Rider New Premium Loans & Payments Interest Made $26, $78, Payment Annual Requirement Payment of $36, To keep your $26, rider active Dividends Earned $2, Policy you must Premium pay $36, by 12/14/2018. Payment $26, of this balance Paid-Up Loan Repayments Addition Rider Applied Payments in Period Made $73, $20, Your policy is scheduled to begin the automated premium offset program in Dividend & Paid-Up Additions $ will, years(01/14/2024). Annual at a minimum, Payment keep your rider active until 12/14/2019. $26, Surrenders Dividends Earned $2, You can pay up to $0.00 into your PUA Rider during the next Your statement You policy have is scheduled paid period. $73, to begin towards the automated your premium Paid-Up offset Additions program Rider in Dividend New Loans & Paid-Up & Interest Additions $78, $ years(01/14/2024). Payment Requirement This is your of $36, first annual To keep statement your rider for active Guaranteed Surrenders Choice Whole Life. The statement provides a you must pay $36, snapshot by of 12/14/2018. the previous Payment policy of year. this balance It includes Loan a concise Repayments summary Applied of key information Period on the $20, front You have paid $73, towards your Paid-Up Additions Rider will, at a minimum, page, keep with your more rider detailed active until transaction 12/14/2019. activity thereafter. New Loans & Interest $78, Payment Requirement of $36, To keep your rider active You can pay up to For $0.00 additional into your details, PUA Rider visit during the next you must pay $36, by 12/14/2018. Payment of this balance Loan Repayments Applied in Period $20, statement period. will, at Policy a minimum, Number: This keep is your rider first WILLIAM active annual until PENN statement 12/14/2019. for. The statement Page provides 1 of 3 a You can pay up to snapshot $0.00 into of your the PUA previous Rider during policy the year. next It includes a concise summary of key information on the front statement period. page, with more detailed transaction activity thereafter. For additional details, visit Policy Number: This is your first WILLIAM annual PENN statement for. The statement Page provides 1 of 3 a snapshot of the previous policy year. It includes a concise summary of key information on the front This page, is your with first more annual detailed statement transaction for Guaranteed activity thereafter. Choice Whole Life. The statement provides a snapshot For additional of the details, previous visit policy year. It includes a concise summary of key information on the front Policy Number: page, with more WILLIAM detailed PENN transaction activity thereafter. Page 1 of 3 For additional details, visit Policy Number: Page 1 of 3 Includes your: Financial Professional s contact information Policy start and maturity dates Insured and primary beneficiary information Lists your policy: Type Included benefits and riders Face Amount Death Benefit Cash Value Outstanding loans balance if applicable. Details: Upcoming scheduled payments Activities made during the statement period The amount you have paid and maximum amount you can pay into the Accelerated Permanent Paid-Up Additions or Enhanced Permanent Paid- Up Additions Rider if elected Includes informational messaging particular to your policy 3

4 Sample Annual Statement Page 2 Benefits and Values Death Benefit Cash Value Base Policy $1,315, $0.00 Paid-Up Additions from Paid-Up Additions Rider $682, $137, Paid-Up Additions from Benefits Dividends and Values $10, $2, Flexible Protection - Paid-Up Additions Death $100, Benefit $9, Cash Value Flexible Protection Base - Policy Term $1,315, $1,837, $0.00 N/A Paid-Up Additions from Paid-Up Additions Rider $3,946, $682, $149, $137, Paid-Up Additions LESS Outstanding from Dividends Loans $10, $57, $57, $2, Flexible Protection - Paid-Up Additions Net $3,889, $100, $91, $9, DividendsFlexible Protection - Term $1,837, Loans N/A Beginning $3,946, Loan Balance $149, $ Dividend of $2, awarded on 01/14/2015. LESS Outstanding Loans $57, New Loans + $77, $57, Your dividend was used as follows: $2, to Net purchase $10, of Paid-Up Additions. Your future $3,889, Loan Interest $91, $ dividend awards will purchase Dividends Paid-Up Additions. If Repayments Loans - $20, you wish to change this option, please contact Penn Ending Loan Balance $57, Mutual. Beginning Loan Balance $ Dividend of $2, awarded on 01/14/ Loan Interest New Loans Rate + $77, % The Your payment dividend and was amount used of as dividends follows: are $2, not guaranteed. to 2014 Loan Loan Interest Interest Rate + $ % purchase $10, of Paid-Up Additions. Your future dividend awards will purchase Notice Paid-Up from Additions. the State If Insurance Department Repayments of Pennsylvania - $20, you wish to change this option, please contact Penn Ending Loan Balance $57, IMPORTANT Mutual. POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in the future. You should not consider 2015 Loan replacement Interest Rate of your policy or make changes 5.00% in The your payment coverage and amount without of requesting dividends are a current not guaranteed. illustration. You may 2014 annually Loan Interest request, Rate without charge, such an 5.00% illustration by calling , writing to Penn Mutual, PO Box 178, Philadelphia, PA 19105, 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 Notice from the State Insurance Department of Pennsylvania your state insurance department. IMPORTANT POLICY OWNER NOTICE: You should consider requesting more detailed information about your policy to understand how it may perform in the 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, PO Box 178, Philadelphia, PA 19105, 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. Details the current: Death benefit Base policy Cash Value Paid-up additions from riders * Paid-up additions from dividends* Dividend awarded to your policy (and your dividend election) Loan interest rate and details of your loan activity. * If elected See your policy contract for information about dividend options. Provides applicable state specific information about your policy Policy Number: Page 2 of 3 Policy Number: Page 2 of 3 4

5 Sample Annual Statement Page 3 Your statement provides a history of the activity on your policy for the policy year ending on 01/14/2015. 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 in your annual statement provides 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: Page 3 of 3 5

6 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. Additional Scheduled Paid-Up Addition Deposit Additional premiums to be paid to the Accelerated Permanent Paid-Up Additions or Enhanced Permanent Paid-Up Additions Riders, if elected. Cash Value The sum of the cash value for the base policy, Paid-Up Additions, and dividend accumulations. A detailed breakout is shown on page 2 of your annual statement. Death Benefit The sum of death benefits of the base policy, Flexible Protection Rider, Paid-Up Additions, and dividend accumulations. A detailed breakout is shown on page 2 of your annual statement. Dividend The sum returned to a policy owner by an insurance company under a participating policy. Generally, dividends are declared and paid annually, but are not guaranteed. The amount can vary each year based on a number of factors, including the investment, mortality and administrative cost experienced by the company on this block of whole life business. Once paid, dividends can accumulate interest, reduce premiums you are required to pay, purchase additional paid-up insurance that increases guaranteed values, etc. See your policy for more information about the dividend options available to you. Face Amount The amount of death benefit specified in your base policy and Flexible Protection Agreement, excluding any additional death benefit from dividends, paid-up additions, or other riders. Loan Money borrowed against the cash value of the policy. A loan can be taken from the cash 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 value and the net death benefit. If loans are outstanding at the insured s death they will reduce the cash value or death benefit. Your statement shows the interest rate charged on loans take from your policy. Loan charge rates can change and are declared each year by the company based on Moody s Corporate Bond Average Yield. Policy Premium The amount of premium to be paid for the year for the base policy and any elected riders other than the Paid-Up Additions Riders or Flexible Protection Agreement. 6

7 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 additional information, please review your Flexible Choice Whole Life contract. Accelerated Death Benefit allows access to a portion of the death benefit if the insured is diagnosed with a terminal illness. Accidental Death Benefit provides an additional death benefit if the insured dies as the result of an accident. Children s Term Insurance Agreement 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* allows access to a portion of the death benefit if the insured is certified as chronically ill. Disability Waiver of Premium Rider preserves coverage if the insured cannot work in their occupation for two years, or in any occupation after two years. Enhanced Disability Waiver of Premium Rider keeps the policy in force for six years if the insured cannot work in their occupation longer if they can t work at all. Flexible Protection Agreement blends term insurance with your base face amount of coverage, thereby lowering required premiums and guaranteed values. Guaranteed Purchase Option allows you to increase your coverage at certain option dates without having to submit medical evidence of insurability. Overloan Protection Rider can keep your coverage intact despite outstanding loans. Accelerated Permanent Paid-Up Additions Rider periodically pays extra premiums to help you replace your term insurance faster. Enhanced Permanent Paid-Up Additions Rider lets you increase your death benefit and build cash value more rapidly by purchasing additional paid-up whole life insurance. * In TX: Long-Term Care Accelerated Benefit 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 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. is a whole life insurance policy offered by The Penn Mutual Life Insurance Company. Product or features may not be available in all states. Policy form numbers: ICC13-TL and TL 13. (Policy form numbers may vary by state.) 2015 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172, T /15