Life insurance products
There are two basic types of life insurance to plan for life’s needs and goals, term life and permanent life. An easy way to understand the difference is to look at the names themselves. Term is a time-based solution similar to “renting” – as it runs out on a given date. Permanent is a lifetime solution similar to “owning” – as it stays with you, grows in value and can be used throughout your life.
Term Life Insurance
Term life insurance provides guaranteed death benefit protection for a specific number of years at affordable premiums that will never change. Many term life policies allow you to convert all or some of your term coverage to permanent life insurance—without evidence of insurability.
Permanent life insurance
Permanent life insurance provides death benefit protection while building cash value you can access to help meet goals during your lifetime. An important part of a sound financial plan, permanent life insurance can help you do more throughout your life.
Refer to the chart below for more information on the differences between Term and Permanent life insurance.
||Short-term protection needs
||Long-term protection plus cash value accumulation to meet financial needs and goals
||Limited time-generally 5 to 30 years. Work coverage typically ends when employment does.
||Lifetime coverage as long as premiums are paid
|Builds cash value
||Accumulates cash value on a tax-deferred basis
|Access to Cash Value
||Lower in early ages, increases with age, policy length and health changes.
||Initially higher than term, but becomes more cost effective than term as you age.
*Accessible through loans and withdrawals, certain limitations may apply to loans or withdrawals. Policy loans and withdrawals will reduce the benefit and cash values and may be taxable under certain circumstances.
Annuities are investment options designed to grow funds and then provide a stream of payments to the investor at a later time. They are the protect and spend portion of a financial plan and are commonly used as a way to secure a steady cash flow for retirement.
Penn Mutual offers a number of options that can be structured in ways that suit your specific needs:
Immediate annuities are purchased with a single payment, and immediately provide an income stream. The income stream is determined by the amount of initial payment, the length of time that the payout will continue, and the number of lives being covered.
Fixed Annuities are a simple, low-risk retirement planning vehicle that helps you protect your principal and allows your investment to grow over time. Your retirement savings are credited with interest at a rate guaranteed never to fall below a stated rate. Your annuity can receive credited interest until you decide to receive a stream of payments.
Variable annuities offer a wide array of investment options that allow you to customize your investment strategy to meet your needs and risk tolerance. Variable annuities also provide protection options to safeguard against inflation and market volatility. A variable annuity is a long-term financial retirement vehicle that offers the greatest growth potential but is subject to market fluctuations and may lose value.
All Guarantees are based on the claim paying ability of the issuer. Investors should consider the investment objectives, risks, charges, and expenses of a variable insurance product carefully before investing. Please carefully read the prospectuses for the relevant variable insurance product and its underlying investment options, which contain this and other information about the product.