At current inflation rates, in 25 years one dollar will have the purchasing power of about $0.32 today*. With people living longer, the cost of living rising and the value of a dollar dropping, consumers are becoming increasingly worried about how these factors will affect their retirement income.
Addressing these concerns, The Penn Mutual Life Insurance Company is the first, and only, financial services provider to offer lifetime inflation protection for their variable annuity products. The Purchasing Power Protector living benefit rider guarantees inflation protection on lifetime withdrawals that increase annually according to increases in the U.S. Consumer Price Index. This new optional rider is available with Penn Mutual's Penn Freedom, Pennant Select and Enhanced Credit Variable Annuities for a current annual charge of 0.65% of the average monthly lifetime withdrawal base for a single contract and 0.85% for a joint contract. All guarantees are based on the claims-paying ability of the issuer.
A Penn Mutual variable annuity with the optional Purchasing Power Protector benefit is the first of its kind to guarantee a steady lifetime income that grows annually with the cost of living. With life expectancy continuing to increase, this solution provides peace of mind the guaranteed lifetime withdrawals will not run out and will actually keep pace with the cost of living. (Please note: withdrawals may be subject to surrender charges and when taken prior to age 59, may be subject to an additional 10% penalty.)
"A dollar definitely doesn't go as far as it used to and ensuring a steady and dependable lifetime retirement income is the number one concern of consumers," said Frank Howell, MSM, CLU, ChFC, Penn Mutual senior vice president of sales support. "Accordingly, Penn Mutual is addressing needs of consumers and leading the development of the most innovative and comprehensive solutions."
Mark J. Mackey, President and CEO of the National Association of Variable Annuities (NAVA), a top industry organization said, "The needs and concerns of consumers are changing and in turn our industry is developing some very new and innovative ways to address this paradigm shift."
In addition to inflation protection, the Purchasing Power Protector also provides joint protection for spouses, the freedom of non-restricted asset allocation within the 21 variable investment options and waiting bonuses for planning ahead.
A sound provider of insurance solutions for nearly 160 years, Penn Mutual enjoys a strong financial record and a reputation for honoring its financial commitments and is pleased to continue meeting the needs of today's consumers. The Purchasing Power Protector is another example of Penn Mutual's ongoing strategy to deliver innovative and industry leading products and riders.
For more information on the Purchasing Power Protector living benefit rider and other Penn Mutual products and riders, talk to a financial advisor or visit www.pennmutual.com, where you can also locate the nearest Penn Mutual representative.
About The Penn Mutual Life Insurance Company
The Penn Mutual Life Insurance Company is the nation's second oldest mutual life insurer. Founded in 1847, the company provides life insurance and annuities through a national network of financial professionals who help clients meet their financial needs with confidence. Penn Mutual supports its field representatives with brokerage services through Hornor, Townsend & Kent, Inc., its wholly owned subsidiary. Visit Penn Mutual on the Internet at www.pennmutual.com.
This information may not be distributed to the public unless it is preceded or accompanied by a prospectus for the relevant variable product and underlying funds prospectus. Investors should carefully consider the funds' objectives, risks, charges and expenses before investing. Please read the prospectuses carefully before investing. You can obtain a prospectus from your Penn Mutual financial professional or visit www.pennmutual.com
* The consumer price index or CPI is the 40-year average from 1965 through 2005. An adjustment is made to floor the CPI at zero in any years where the CPI was negative.
VA policy form numbers: Pennant Select :VAA-98; Penn Freedom: LVA-01; Enhanced Credit: BVA-00 (Policy form numbers may vary by state.)
Securities offered through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, Member NASD/SIPC, 600 Dresher Road, Horsham, PA 19044/215-957-7300. HTK is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.
© 2006 The Penn Mutual Life Insurance Company Philadelphia, PA 19172 www.pennmutual.com
