Effective January 7th, Penn Mutual introduced their new participating whole life offering, Versatile Choice Whole Life, replacing the Guaranteed Choice Whole Life.
- Dial-up Policy Payment Period
Clients can customize their policy payment period at issue—from 5 years after issue to the year the insured will reach age 100.
- Affordability in the Early Years
The Flexible Protection Rider supports a larger death benefit more affordable at issue by blending permanent and term life coverage—then replacing the term coverage with paid-up permanent coverage over time.
- Two Flexible Paid-Up Additions Riders
The Accelerated Permanent Paid-Up Additions Rider helps speed the replacement of the term coverage under the Flexible Protection Rider.
The Enhanced Permanent Paid-Up Additions Rider helps increase death benefit and policy cash values through extra payments.
Both riders offer flexibility, such as custom annual payment amounts and durations, a catch-up payment provision for missed payments and more.
13 Riders to Create Custom Solutions
- Overloan Protection Benefit Rider: Keeps the policy in force despite outstanding loans—and is not typically offered by other whole life providers.
- Chronic Illness Accelerated Benefit Rider: Provides a safety net if chronic illness strikes—and is included automatically at no upfront cost.
- Two Disability Waiver Riders: Provide added security—and one option provides 6-year own-occupation protection.
- Surrender Value Enhancement Rider: Enhances retained values for business planning policies if the policy is canceled in the first five years.
- And many more.
- New Product Effective Dates: Applications may be submitted beginning January 7, 2019
- States Impacted: Versatile Choice Whole Life will replace Guaranteed Choice Whole Life in all states except CA and NY.
- Retiring Product: Guaranteed Choice Whole Life
Key Transition Dates
The following are the transition details and deadlines for the retiring Guaranteed Choice Whole Life Product.
Applications, Underwriting, Policy Issue and Payment:
|Item / Action||Deadline|
|Paper Applications||Paper application signed and submitted to the field office in Good Order, including indication of any anticipated trust||06/28/2019|
|ACE E-Applications||E-App for Accelerated Client Experience Portal (ACE) signed by client and adviser and submitted to the Home Office for formal review||07/03/2019|
|Underwriting & Policy Issue||Final underwriting requirements received by the Home Office in Good Order||08/12/2019|
|Issue instructions received by the Home Office in Good Order||08/26/2019|
|Policy issued or 1035 exchange initiated if applicable||08/30/2019|
|Policy Payment||Policy paid (excludes 1035 exchanges)||09/30/2019|
Product Change Requests Received January 7, 2019 or Later
Requests to switch from the retiring product or another product to Versatile Choice Whole Life will be honored only during the free look period and will require that the field office provide:
- The delivery receipt marked “not taken”
- A new, signed illustration
- Reissue instructions detailing the product change.
- Effective 01/02/19 Versatile Choice Whole life will be the only product available for 412(e)(3) cases in states where the product is approved. Guaranteed Choice Whole Life will remain available for 412(e)(3) cases in states where Versatile Choice Whole Life is not approved.
- Effective 01/02/2019 Penn Mutual will no longer offer an annuity product for 412(e)(3) cases. The Penn Mutual whole life product must be paired with a suitable annuity issued by another carrier.
Life Application Change and Transition Information
- A new life application will be rolled out 01/02/2019 in all states where the new product is approved.
- Versatile Choice Whole Life will be included on the new application.
- The previous application will no longer be accepted in approved states after 02/28/2019.
- For Guaranteed Choice Whole Life sales after 01/02/19, please download/access the following product insert available via RR Donnelly CustomPoint, Life and Annuity Application Builder or LaserApp.