Penn Mutual Updates Chronic Illness Rider
May 4, 2016 by Penn Mutual Life Insurance Company
Launches a Key Living Benefit to Provide Added Peace of Mind
Horsham, PA – May 4, 2016 – The Penn Mutual Life Insurance Company (Penn Mutual) is pleased to announce the launch of its updated Chronic Illness Accelerated Benefit Rider, which became available on May 2.
Available in all states, this next generation rider offers richer benefits and broader availability than its predecessor and can provide added peace of mind if the insured becomes chronically ill*.
The Chronic Illness Accelerated Benefit Rider is designed to protect assets by allowing the policyholder to access a portion of their policy death benefit if the insured is stricken with a chronic illness.
The rider can act as an alternative source of funds to help policyholders avoid spending down other assets more rapidly than anticipated. While it does not replace the need for long-term care insurance, the rider can ease the burden and financial strain caused by a chronic illness by providing funds to cover costs that medical or long-term insurance care may not.
No additional underwriting
The benefit is automatically included on most new permanent life insurance policies issued by Penn Mutual Life Insurance Company and its wholly owned subsidiary Penn Insurance and Annuity Company.** There is no additional underwriting or charge at issue and no cost or impact on the policy values unless the rider is exercised.
“As a mutual company, we pride ourselves on helping policyholders and their families protect their hard-earned assets and lifestyle. Our desire to provide the rider’s extra measure of security to as many mutual policyholders as possible is one of the reasons we automatically include this coverage on the majority of new permanent life policies,” says Andrew Martin, VP of Product Management at Penn Mutual.
The benefit is automatically included on most new permanent life insurance policies
“For most issue ages, this next generation rider will have less impact on the policy death benefit and values than its predecessor, which is a big win for policyholders. With the launch of the new rider, we are also rolling out a multi-year illustration capability, so clients can see the long-term impact of exercising the rider and make more informed decisions. With the enhancements we’ve made, we believe Penn Mutual’s Chronic Illness Accelerated Benefit Rider is one of the most robust riders of its kind in the marketplace and a huge added value for clients.”
About The Penn Mutual Life Insurance Company
Since its founding in 1847, Penn Mutual has been driven by its noble purpose to create a world of possibilities. At the heart of this purpose is the belief that purchasing life insurance is the most protective, responsible and rewarding action a person can take, and is central to a sound financial plan. The company is committed to helping individuals, families and small businesses unlock life’s possibilities through life insurance and annuity solutions. This is accomplished through a national network of more than 5,000 financial professionals, who help clients make great things possible. Penn Mutual supports its field representatives with brokerage services through Hornor, Townsend & Kent, Inc. Registered Investment Advisor and wholly owned subsidiary. Member FINRA/SIPC. Visit Penn Mutual on the Internet at www.pennmutual.com/.
©2016 The Penn Mutual Life Insurance Company, 600 Dresher Road, Horsham, PA 19044
* A chronic illness is defined as he insured being unable to perform 2 of the 6 recognized activities of daily living (ADLs) without substantial assistance for a period of at least 90 consecutive days, or the insured having a severe cognitive impairment that requires substantial supervision by another person to protect the insured from threats to health and safety for a period of at least 90 consecutive days. To access CIAB Rider benefits the condition must be expected to be permanent and must be certified by a U.S. licensed health care practitioner in the last 12 months.
** Subject to underwriting amount and certain eligibility requirements.
All guarantees are based on the claims paying ability of the issuer. The Chronic Illness Accelerated Benefit Rider is a benefit rider offered by The Penn Mutual Life Insurance Company and The Penn Insurance & Annuity Company on certain permanent life insurance policies. The Penn Insurance & Annuity Company is a wholly owned subsidiary of Penn Mutual. Policy form numbers, PML (ICC15-ABCI) and PIA (ICC15-PI-ABCI). Policy form numbers and benefits may vary by state. Any reference to the taxation of life insurance products in this material is based on Penn Mutual’s understanding of current tax laws. Policyholders should consult their legal and tax advisors for specific advice based on there individual situation.
The Chronic Illness Accelerated Benefit Rider is a life insurance benefit that also gives you the option to accelerate some of the death benefit in the event that you meet the criteria for a qualifying event described in the policy. This rider does not provide long-term care insurance subject to California long-term care insurance law. This rider is not a California Partnership for Long-Term Care program policy. This rider is not a Medicare supplement policy.
An Accelerated Benefit Payment (ABP) is the actual benefit paid by the Chronic Illness Accelerated Benefit Rider and is subject to the ABP limits in the contract. The benefits provided by long-term care insurance are not the same as those provided by the Chronic Illness Accelerated Benefit Rider. The Chronic Illness Accelerated Benefit Rider requires a licensed health care practitioner to certify that continuous care in an eligible facility or at home is expected to be required for the remainder of the insured’s life when the insured has a Chronic Illness, whereas long-term care insurance does not generally have this requirement. The Rider also does not restrict how the policy owner can use the Accelerated Benefit Payments, whereas long-term care insurance will generally require proof of expenses incurred.
The Chronic Illness Accelerated Benefit Rider pays proceeds that are intended to qualify for favorable tax treatment under section 101(g) of the Federal Internal Revenue Code. The federal, state, or local tax consequences resulting from payment of Accelerated Benefit Payments (ABPs) will depend on the specific facts and circumstances, and consequently advice and guidance should be obtained from a personal tax advisor prior to the receipt of any ABPs. Death benefits and policy values, such as cash values, premium payments and cost of insurance charges if applicable, will be reduced if an ABP is paid.
