Penn Mutual Product Overview: Guaranteed Protection UL (GPUL)

Overview:

  • Essentially, this rate change reversed Penn Mutual’s previous pricing change (increase) from October of last year.With this change, premiums decreased across the board, by about 11%, 19%, and 24% for full-pays, ten-pays, and single-pays respectively.This change brings the product back to a relatively strong competitive position.Full and ten-pays now break into the top quartile for ages 20-50 with fair consistency. Single-pays benefitted the most and almost always rank top quartile with many cells ranking first, especially when looking at A100 guarantees.
  • Targets improved by about 9% on average and tend to be middle market from a competitive standpoint.
  • NOTE:Effective February 3, 2014, the $3 million annual premium cap will be removed. The annual premium cap will also be eliminated from Penn Mutual’s other permanent life products.

The attached standard analysis includes all of the products we benchmark (27/28 products considered):

  1. Old Ranking for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  2. New Ranking for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  3. New vs Old Ranking Changes for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  4. Percent Premium is Above Best Rate for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  5. Percent Premium is Below Next Best Rate (when ranked 1st) for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  6. Old Ranking for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  7. New Ranking for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  8. New vs Old Ranking Changes for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  9. Percent Premium is Above Best Rate for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  10. Percent Premium is Below Next Best Rate (when ranked 1st) for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  11. New Target Premium Ranking for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)

Penn Mutual doesn’t allow guarantees below A95; therefore, there product is not considered in our to age 90 benchmarks.

  1. New vs Old Percentage Premium is Higher or Lower for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)
  2. New vs Old Percentage Premium is Higher or Lower for $1,000,000 DB, NLG A100 (single, full and short-pay scenarios)
  3. New vs Old Percentage Target Premium is Higher or Lower for $1,000,000 DB, NLG Lifetime (single, full and short-pay scenarios)

Data was updated on the LifeTrends website on Wednesday, January 22nd, 2014.