Guide to Reading the Whole Life Annual Statement

Transcription

1 Guide to Reading the Whole Life Annual Statement Whole Life Insurance 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 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... 5 If you have any questions, please contact your Financial Professional or Penn Mutual Client Services at

2 Sample Whole Life Annual Statement This section of the guide walks through a sample 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. 2

3 Sample Whole Life Annual Statement Page 1 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 Includes informational messaging particular to your policy 3

4 Sample Whole Life Annual Statement Page 2 Details the current: Death benefit Base policy Cash Value Paid-up additions from dividends* Dividend awarded to your policy (and your dividend election) Loan interest rate and details of your loan activity. See your policy contract for information about dividend options. Provides applicable state specific information about your policy 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. 4

5 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 Whole Life policy. 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, 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 Whole Life policy for more information about the dividend options available to you. Face Amount The amount of death benefit specified in your base policy, 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. 5

6 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 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172, T /15