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Penn Mutual's Cornerstone VUL II offers new life insurance and investment options.

spectacular success of its first variable universal life product back in 1993, The Penn Mutual Life Insurance Company has just introduced Cornerstone VUL II, its second generation variable contract.

"Variable life insurance continues to be one of the hottest products on the market," said Richard Feinstein, director, Insurance Product Support. "Our first Cornerstone VUL contract now accounts for over 37% of our total life business (in annualized premium), and we see the new Cornerstone VUL II policy taking an even larger share of the variable market."

Several enhancements that make Cornerstone VUL II extremely competitive have been made to both the insurance and investment portions of the policy. Utilizing agent, field management and consumer research, Cornerstone VUL II was designed to fit today's changing economic and market demands, with a host of features to fit specific consumer preferences.

Life Insurance Enhancements

Cornerstone VUL II features reduced sales charges, a preferred underwriting class and banded rates on contracts with death benefits of $250,000 or more. "These factors help to lower costs and make the policy much more attractive -- and affordable -- to consumers," said Feinstein.

Cornerstone VUL II offers a full complement of life insurance riders, including a guaranteed death benefit option that assures the continuation of the death benefit even if the policy's investment performance becomes negative. Other rider options include the Disability Completion Benefit and the Flexible-Period Term Rider.

In the event of total disability, the Disability Completion Benefit pays a stipulated premium and waives all monthly policy expenses (after a short four-month waiting period). Added Feinstein, "Penn Mutual is the only company that offers a rider structured like this one."

The Flexible-Period Term Rider provides additional low-cost term insurance coverage within the policy. The policyowner chooses the duration of the rider and provides the opportunity to convert the term coverage to cash-value protection at any time up to three years before the rider expires.

Investment Enhancements

Cornerstone VUL II offers policyowners the opportunity to invest in up to 14 different investment funds -- managed by some of the most well-known investment companies in the country -- as well as one guaranteed fixed-rate account.

Three Fidelity investment funds were added based on strong consumer recognition and the excellent performance of the funds. "Our research indicated that clients prefer the use of `outside' fund managers in variable life products, and a name like Fidelity is a nationally recognized investment advisor," added Feinstein.

Other fund advisors include T. Rowe Price Associates Inc., Neuberger & Berman, Twentieth Century, Vontobel USA, Quest for Value and Independence Capital Management Inc.

Cornerstone VUL II offers other important investment options that are designed specifically to minimize investment risk to the consumer. These include Dollar Cost Averaging (which allows premium dollars to be systematically invested among selected investments over time) and Automatic Asset Rebalancing (for periodically rebalancing dollar-percentage allocations within a portfolio).

About Penn Mutual

Founded in 1847, Penn Mutual is one of the oldest and largest mutual life insurance companies in America. Today, Penn Mutual and its subsidiaries hold more than $7.1 billion is consolidated assets and stand behind over $34.6 billion in life insurance in force.

CONTACT: Penn Mutual Life Insurance Co., Philadelphia

Eva Frantz, 215/956-8760
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Publication:Business Wire
Date:Jul 6, 1995
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