The Penn Mutual Life Insurance Company, Horsham, Pa., and its wholly owned subsidiary Penn Insurance and Annuity Company, have introduced their enhanced Accumulation Builder II Indexed Universal Life. The product offers more flexibility, expanded market applications and provides consumers with the security of a permanent life insurance policy and high cash accumulation potential through a variety of account options. All guarantees are based upon the claim-paying ability of Penn Mutual.
What makes this product different from other indexed life products is the 2% annual interest floor guarantee that is credited monthly, on values in the indexed account. The indexed account, which is based on the performance of the S&P 500 (excluding dividends), can provide more upside potential for strong returns plus the downside protection from market risk.
As an alternate premium option, Accumulation Builder II IUL’s 12-month Dollar Cost Averaging (DCA) Account allows policyowners to benefit from a highly competitive interest rate while spreading out market timing risks. For those who prefer a more conservative allocation, there is now a traditional fixed account with a 12-month interest guarantee that currently credits 1% more interest than the fixed account in the prior product.
In addition, Accumulation Builder II IUL provides consumers with the freedom to allocate each new premium payment to any of the three designated accounts and the option to transfer existing account values between the Indexed and Fixed Accounts (within limits). This flexibility provides policyowners with a measure of downside protection and the ability to determine the level of risk appropriate for their financial situation.
Accumulation Builder II IUL provides a number of guarantees in addition to its 2% annual floor and built in 20-year no-lapse death benefit guarantee (varies by age). There is also a guarantee of 100% participation in indexed account performance up to a competitive cap (currently 14% and guaranteed to never fall below 4%) and fixed loan charge rates on both the indexed and traditional loan options.
Accumulation Builder II IUL also offers a host of optional riders. The Overloan Protection rider keeps the policy in force despite outstanding loans, and the Supplemental Term rider improves long-term cash value. In addition, Accumulation Builder II IUL offers the Cash Value Enhancement rider and the Business Accounting rider, which are more accommodating for businesses. These options can help business owners looking to reward key employees through a corporate sponsored, non-qualified plan and allows businesses to reflect higher cash value on their balance sheets and are available for additional cost.
For more information, visit www.PennMutual.com.