The Penn Mutual Life Insurance Company, Horsham, Penn., has announced that it is taking action to help variable life policyholders who are experiencing significant reduction in their policies’ net surrender values as a result of the recent economic downturn. The company is extending the base no-lapse guarantee period on eligible existing policies for the company’s Cornerstone VUL III, Cornerstone VUL IV, Variable Estate Max II and Variable Estate Max III products by an additional two years.
With this action, Penn Mutual is providing policyholders with additional protection, helping them to maintain their policies in-force, even if there is no longer any surrender value remaining as a result of the economic downturn. These changes have been made in alignment with the company’s primary responsibility as a mutual company to always act in the best interest of its policyholders. While there will be a minimum premium requirement going forward to continue this extended coverage period, there is no extra charge for this enhancement.
“At Penn Mutual our number one priority is serving the needs of our policyholders,” said Robert E. Chappell, chairman, president, and chief executive officer for Penn Mutual. “We’ve assisted policyholders who were impacted by Hurricane Katrina, the Midwest floods and the California wildfires in the recent past, so providing an additional grace period to policyholders through this unprecedented economic environment is the right thing for a mutual company to do. As a mutual company, we will continue to focus on assisting and providing for our clients who depend on us to protect what matters most to them.”
Policy eligibility requires that as of October 15, 2008, the age of the policy must be within the new extended no-lapse period and be in-force or within the policy grace period. For eligible policies, this change, at a minimum, will provide policyholders with an additional 61-day grace period, during which they can pay sufficient premium to continue coverage.
For more information, Visit Penn Mutual at http://www.pennmutual.com.