Mutual - Life Insurance
Mutual: The Leader
Retirement Planning, Variable Life Insurance, Pensions, Brokerage:
Provident Mutual Leads the Way.
Mutual has a proud and rich heritage in the world of financial
services. Provident Mutual Life Insurance Company can trace
its roots back over two centuries and has built a reputation
for strength, stability and sound management. Licensed in
all states and the District of Columbia, Provident Mutual
is a progressive insurance and financial services company,
providing individual life insurance to protect families, estates
and businesses and fund individual qualified plans. The Company
also offers group annuity contracts and related services to
fund qualified pension plans. Provident Mutual's innovative,
flexible product line features investment, protection, asset
accumulation and distribution and wealth transfer solutions
designed to meet your financial needs throughout your life.
of December 31, 1999, Provident Mutual and its affiliated
companies have more than $43 billion of life insurance in
force, consolidated assets totaling over $9.2 billion and
consolidated liabilities of $8.3 billion. Provident Mutual
are more than an excellent life insurance company. Provident
Mutual have the financial products and services you can count
on to help you achieve your financial goals as you move through
the various stages of life.
Provident Mutual - Is Variable Life Your Best Option?
understand variable universal life insurance and its unique
features and benefits, you need to understand term life, traditional
whole life and universal life as well as variable life insurance.
insurance is the most economical form of coverage and is used
primarily if the need for life insurance is for a limited
period of time. It provides pure life insurance protection
with no associated cash value savings element.
of term insurance include (but are not limited to) Annual
Renewable Term, Level Premium Term for a specific number of
years and Decreasing Death Benefit Term. Some term policies
have a conversion rider that allows the insured to convert
the policy to a permanent policy without evidence of insurability.
your need for life insurance is temporary, term insurance
is generally a cost-effective way to protect your loved ones.
It only pays a death benefit if you die within a specified
period of time, and can usually be renewed when you reach
the end of this time frame, which can be between one and 20
Traditional whole life insurance, unlike term insurance, combines
a death benefit with an accumulation, or savings element,
commonly referred to as the policy' s cash value. This savings
element increases each year the policy stays in force. The
death benefit payable is the face amount of the policy, which
remains constant throughout the policy' s life. The premium
is set at the time of the policy' s issue and also remains
level for the life of the policy. The owner has no control
over how the savings element is invested.
Universal life is a variation of whole life insurance with
some added flexibility. Universal life insurance (ULI) allows
a policy owner to determine the amount and frequency of the
premium payments and to adjust the death benefit up or down
to reflect individual needs. A simple way to describe ULI
is as a term insurance policy with a policy value fund. Again,
the owner has no control over how the savings element is invested.
premiums are paid and cash values accumulate, interest is
credited to the policy' s cash value account. As long as the
cash value account is sufficient to pay the monthly mortality
and expense cost, the policy will stay in force, whether or
not the owner pays the premium; however, if the cash value
account is not sufficient to support the monthly deductions,
the policy will lapse.
owner can increase or decrease the face amount and can elect
to pay more into the policy increasing the cash value account.
Variable life insurance (VLI) has many of the same characteristics
of whole life insurance. The primary difference is the way
in which the cash reserves are invested. In whole life insurance,
the reserves are invested by the insurance company in low
risk conservative investments such as bonds, real estate and
mortgage loans. Low risk equates to security and generally
lower returns on your investment. These cash reserves are
held in the insurance company's general account. With variable
life insurance, the policy owner chooses how the reserves
will be invested. This allows policy owners to pick and choose
investment options to help meet their investment objectives.
Since these reserves are held by the insurer in special separate
accounts, cash reserves can be invested in potentially higher
yielding investments than can general account reserves.
Variable universal life (VUL) combines the characteristics
of the variable life policy, such as cash value and death
benefits that vary according to the performance of the separate
account, and certain characteristics of universal life, such
as allowing the owner to adjust premium payments and death
benefit according to changing needs. Simply stated, VUL is
basically term life insurance coupled with a group of separate
accounts similar to a family of mutual funds that are available
within the contract, to help the policy owners meet their
investment objectives. This type of product is designed to
give policy owners ultimate flexibility as to premium payments,
investment objectives and death benefits by allowing:
right to vary the frequency and amount of the premium
right to allocate net premiums among one or more of the
separate accounts or the general account
right to increase or decrease the policy's face amount
right to change the death benefit option