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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/21/23 Pia Variable Life Account I N-6/A 12/31/22 29:11M Donnelley … Solutions/FA → PIA Variable Life Account I ⇒ Accumulation Variable Universal Life Insurance |
Document/Exhibit Description Pages Size
1: N-6/A Pia Variable Life Account I HTML 1.34M
2: EX-99.(D)(1) Specimen Accumulation Variable Universal Life HTML 441K
Insurance Policy
11: EX-99.(D)(10) Rider - Supplemental Term Insurance Rider. HTML 34K
12: EX-99.(D)(11) Rider - Overloan Protection Benefit Rider. HTML 21K
13: EX-99.(D)(12) Rider - Accelerated Benefit Chronic Illness HTML 26K
Rider
14: EX-99.(D)(13) Rider - Chronic Illness Accelerated Benefit HTML 45K
Rider.
15: EX-99.(D)(14) Rider - Supplemental Exchange Rider. HTML 21K
3: EX-99.(D)(2) Rider - Accidental Death Benefit Rider. HTML 24K
4: EX-99.(D)(3) Rider - Additional Insured Term Insurance Rider. HTML 29K
5: EX-99.(D)(4) Rider - Early Surrender Value Rider. HTML 17K
6: EX-99.(D)(5) Rider - Cash Value Enhancement Rider. HTML 19K
7: EX-99.(D)(6) Rider - Children's Term Insurance Rider. HTML 20K
8: EX-99.(D)(7) Rider - Disability Waiver of Monthly Deductions HTML 29K
Rider.
9: EX-99.(D)(8) Rider - Disability Waiver of Stipulated Premium HTML 31K
Rider
10: EX-99.(D)(9) Rider - Guaranteed Increase Option Rider. HTML 26K
16: EX-99.(E) Application Form(S) for Accumulation Variable HTML 62K
Universal Life Insurance Policy.
17: EX-99.(H)(2) Revised Schedule A to the Participation HTML 17K
Agreement Between Vanguard Variable Ins
18: EX-99.(K) Opinion & Consent of Counsel as to the Legality of HTML 15K
the Securities Being Register
19: EX-99.(N) Consent of Independent Registered Public HTML 11K
Accounting Firm.
20: EX-99.(R) Form of Initial Summary Prospectus HTML 405K
25: R1 N-6 HTML 1.38M
27: XML IDEA XML File -- Filing Summary XML 16K
26: XML XBRL Instance -- d647726dn6a_htm XML 1.53M
22: EX-101.DEF XBRL Definitions -- cik0001910169-20231231_def XML 86K
23: EX-101.LAB XBRL Labels -- cik0001910169-20231231_lab XML 124K
24: EX-101.PRE XBRL Presentations -- cik0001910169-20231231_pre XML 82K
21: EX-101.SCH XBRL Schema -- cik0001910169-20231231 XSD 68K
28: JSON XBRL Instance as JSON Data -- MetaLinks 126± 140K
29: ZIP XBRL Zipped Folder -- 0001193125-23-301259-xbrl Zip 383K
| PIA VARIABLE LIFE ACCOUNT I |
THE SECURITIES ACT OF 1933 |
☒ | |||
Pre-Effective Amendment No. 2 |
☒ | |||
Post-Effective Amendment No. |
☐ |
THE INVESTMENT COMPANY ACT OF 1940 |
☒ | |||
Amendment No. 8 |
☒ |
| • | Pages 6 to 9 provide a table summarizing key information about the Policy. |
| • | Pages 10 to 13 provide an overview of important features and benefits and other information. |
| • | Pages 14 to 24 include tables showing fees and charges under the Policy. |
| • | Pages 25 to 28 summarize the principal risks of investing in the Policy. |
| • | Pages 29 to 71 provide additional, more detailed information about the Policy, in a question and answer format. |
| • | Pages 71 to 73 provide information about The Penn Insurance and Annuity Company (“PIA,” or the “Company”), the PIA Variable Life Account I (the “Separate Account”), and the underlying variable investment options (the “Variable Investment Options”). |
| • | Appendix A at the end of this Prospectus lists the mutual funds that are available in the Variable Investment Options (the “Portfolios” or the “Portfolio Companies”), including information regarding their expenses and past investment performance. |
| • | Appendix B at the end of this Prospectus describes the fixed account options, traditional loans, and indexed loans available under the Policy. |
| • | Appendix C at the end of this Prospectus describes material state variations in the Policy provisions. |
Fees and Expenses | ||||||||||
Charges for Early Withdrawals |
i If you fully surrender your Policy within the first i 10 years following your purchase of the Policy or within the first 10 years following an increase in the Specified Amount you may be assessed a Surrender Charge of up to i 4.50%
of your Specified Amount. For example, if you were to surrender your Policy during the first year after your Policy purchase (and your total premiums paid were $100,000 and your Specified Amount is $500,000), then you could be assessed a Surrender Charge of up to $ i 22,500. For more detailed information, see “Table of Fees and Expenses;” “What Are the Fees and Charges Under
the Policy?” / | |||||||||
Transaction Charges |
i You may be assessed a Surrender Charge of up to 4.50% of your Specified Amount upon a decrease in the Specified Amount within the first five years following your purchase of the Policy. In addition to the Surrender Charge for Policy surrenders, you may be charged for other transactions. These include a Percent of Premium Charge (deducted from each premium) and a partial withdrawal processing fee. We reserve the right to impose transfer charges (when you transfer Policy Value between Investment Options), but we currently do not impose these charges. We may
also impose charges if you exercise certain rider benefits. For more detailed information, see “Table of Fees and Expenses;” “What Are the Fees and Charges Under the Policy?” | |||||||||
Ongoing Fees and Expenses |
In addition to Surrender Charges and transaction charges, an investment in the Policy is subject to certain ongoing fees and expenses (usually deducted on a monthly basis). Some of these charges, such as the monthly Cost of Insurance Charge, the monthly Expense Charge per Thousand of Specified Amount, and certain Rider charges (for supplemental benefits), are set based on individual characteristics of the insured (e.g., age, sex, and rating classification). Other ongoing charges include the monthly Mortality and Expense Risk Asset Charges, loan interest, Per Policy Expense Charge, Asset Charges on certain Indexed Fixed Accounts and certain other Rider charges. Please refer to the Policy Specifications Page for rates and the specific fees applicable to your Policy. Investors will also bear expenses
associated with the Portfolios, as shown in the following table, which shows the minimum and maximum total operating expenses deducted from Portfolio assets (before any fee waiver or expense reimbursement) during the year ended December 31, 2022. | |||||||||
| Total Annual Operating Expenses (expenses that are deducted from Portfolio assets) | ||||||||||
Annual Fee |
Minimum |
Maximum |
||||||||
| Variable Investment Options (Portfolio fees and expenses) |
i 0.11% | i 0.41% | ||||||||
For more detailed information, see “Table of Fees and Expenses;” “What Are the Fees and Charges Under the Policy?” |
||||||||||
Risks | ||
Risk of Loss |
i You can lose money by investing in this Policy, including loss of your premiums (principal). For more detailed information, see “ Summary of Principal Risks of Investing in the Policy;” “ What is the Value of My Policy?” | |
Not a Short-Term Investment |
i This Policy is not designed for short-term investing and is not appropriate for an investor who needs ready access to cash. The Policy is designed to provide a life insurance benefit or to help meet other long-term financial objectives. Substantial fees, expenses, and tax implications generally make variable life insurance unsuitable as a short-term savings vehicle. Additionally, the Policy limits your ability to withdraw a portion of the Policy Value (also called cash value) through partial withdrawals or loans; you cannot access more than your Net Cash Surrender
Value (the Policy Value less the Surrender Charge and less any outstanding Policy loan). | |
Risks Associated with Investment Options |
i • An investment in this Policy is subject to the risk of poor investment performance of the Portfolios you choose, and the value of an investment can vary depending on the performance of the Portfolios. • Each Investment Option (the Portfolios and the Fixed Account Options) has its own unique risks. The performance of the Portfolios will vary among each other, may underperform similar mutual funds not available through the Variable Investment Options, and some are riskier than others. • A
discussion of the risks of allocating your premiums or Policy Value to one or more Portfolios can be found in the prospectuses for the Portfolios. You should review the prospectuses for the Portfolios before making an investment decision. • Premiums and Policy Value allocated to the Fixed Account Options may be kept there for an extended period of time due to restrictions on transfers out of the Fixed Account Options. • Amounts you allocate to an Indexed Fixed Account will not earn less than a minimum interest rate. The guaranteed minimum interest rate on all non-loaned Indexed Fixed Account segments is 0.00%. Even with the guaranteed minimum interest rate, the Policy Value in the Indexed Fixed Account may decrease due to the Asset Charge, and you could lose money. For more detailed information, see “ Summary of Principal Risks of Investing in the Policy;” “ Appendix A — Portfolio Companies Available Under the Policy;” “ Appendix B — Fixed Account Options and Policy Loan Accounts.” | |
Insurance Company Risks |
i An investment in the Policy is subject to the risks related to the Company, including: • Any obligations, guarantees, and benefits of the Policy (including the Fixed Account Options) are subject to the claims-paying ability and financial strength of the Company. • There are risks relating to the Company’s administration of the Policy, including, among others, cybersecurity and infectious disease outbreak risks. • If
the Company experiences financial distress, it may not be able to meet its obligations to you. • More information about the Company, including its financial strength ratings, is available upon request from the Company at 1-800-523-0650. For more detailed information, see “ The Penn Insurance and Annuity Company;” “ Financial Statements;” “ Summary of Principal Risks of Investing in the Policy– Insurance Company Risks;”
“ Other Information.” | |
Risks | ||
Policy Lapse |
i The Policy can lapse even if you pay all of the planned premiums on time. • When a Policy lapses, it has no value, and no benefits are paid upon the death of the insured. You will also lose the principal invested. • A Policy can lapse if the Net Cash Surrender Value is insufficient to pay the Policy charges. This can happen due to insufficient premium payments, poor investment performance, withdrawals, unpaid loans or loan interest, and Policy charges (including increases in those charges). • The
larger a Policy loan becomes relative to the Policy’s Cash Surrender Value, the greater the risk that the Policy’s Net Cash Surrender Value will not be sufficient to support the Policy’s charges, including any loan interest due, and the greater the risk of the Policy lapsing. • A Policy lapse may have tax consequences. • If the Policy lapses, there are costs and premium requirements associated with reinstatement of the Policy. The no-lapse feature can prevent the Policy from lapsing if certain provisions are satisfied. For more detailed information, see “Summary of Principal Risks of Investing in the Policy;” “What
Payments Must I Make Under the Policy? — Lapse and Reinstatement.” | |
Restrictions | ||
Investments |
i • You can allocate your Net Premiums to Variable Investment Options (that invest in the Portfolios) or Fixed Account Options. • The minimum amount that you can transfer generally is $25. • If less than the full amount held under an Investment Option is transferred, the amount remaining in the Investment Option must be at least $25. • The
maximum amount that you can transfer out of the Traditional Fixed Account in any Policy year is the greatest of (a) 25% of the amount in the Traditional Fixed Account at the previous Policy anniversary, (b) $5,000, or (c) the total amount transferred out of that account in the previous Policy year. • You may only transfer amounts from the Indexed Fixed Account at the end of its term. • Partial withdrawals and loans from an Indexed Fixed Account prior to the end of its term will receive a proportional amount of index credits for the time the amount is in the account before it is withdrawn. An index credit will not be paid if the Policy is surrendered before the end of a segment. • The amount that may be transferred
excludes any amount held in the Policy loan accounts. • A 12 month Lockout Period will begin anytime a Policy loan is taken while any Policy Value is in the Indexed Fixed Accounts. During the Lockout Period, no transfers from the Traditional Fixed Account to the Indexed Fixed Accounts will be allowed. • The Company reserves the right to remove or substitute any of the Portfolios as Investment Options that are available under the Policy. • In addition, we may limit your ability to make transfers involving the Variable Investment Options if it is believed that a transfer may disadvantage or potentially harm or hurt the rights or interests of other Policy owners. • We
will also reject or reverse a transfer request if for any reason any of the Portfolios do not accept the purchase of its shares. | |
Restrictions | ||
For more detailed information, see “ How Are Amounts Credited to the Variable Investment Options of the Separate Account?;” “ How Can I Change the Policy’s Investment Allocations?;” “ Policy Loans | ||
Optional Benefits |
i • We offer several optional benefits in the form of a rider to the Policy. Various optional benefits are available and some have an additional charge. Not all riders are available in every state and some riders may only be added when you apply for your Policy. • We may stop offering an optional benefit or may stop accepting subsequent premiums for an optional benefit at any time. • A change in the Specified Amount, a change in
the death benefit option, the addition, deletion, or change of any riders, and/or a change in the insured’s rate class may impact the Policy’s No-Lapse Feature and may require the payment of additional premiums to maintain the Feature’s guarantee. For more detailed information, see “ What Are the Supplemental Riders And Benefits That Are Available?” | |
Taxes | ||
Tax Implications |
i Consult with a tax adviser to determine the tax implications of an investment in and payments received under this Policy. • If you purchase the Policy through a tax-qualified plan you do not get any additional tax benefit. • Earnings on your Policy (if any) are taxed when you withdraw them (or if a Policy loan is not repaid), at ordinary income tax rates, and may be subject to a tax penalty before age 59 1 ⁄ 2 . For more detailed information, see “ Summary of Principal Risks of Investing in the Policy — Tax Risks;” “ How Is the Policy Treated Under Federal Income Tax Law?” | |
Conflicts Of Interest | ||
| Investment Professional Compensation |
i Your financial professional may receive compensation for selling this Policy to you, in the form of commissions, asset-based compensation, allowances for expenses, and other compensation programs, and the Company may share the revenue it earns on this Policy with the professional’s firm. (Your financial professional may be your broker, investment adviser, insurance agent, or someone else.) For these reasons, these financial professionals may have a financial incentive to recommend this Policy over another policy or investment. | |
Exchanges |
i Some financial professionals may have a financial incentive to offer you a new policy in place of the one you own. You should only exchange your policy if you determine, after comparing the features, fees, and risks of both policies, that it is preferable for you to purchase the new policy rather than continue to own your existing policy. For more detailed information, see “ What Payments Must I Make Under the Policy? — Tax-Free ‘Section 1035’ Insurance Policy Exchanges.” |
|
1. |
Purpose of the Policy |
2. |
Premiums |
3. |
Policy Features |
| • | Option 1 – the death benefit is the greater of (a) the Specified Amount of insurance, or (b) a percentage of the Policy Value (on the date of the insured’s death) equal to the minimum necessary for your Policy to qualify as life insurance under IRC Section 7702; or |
| • | Option 2 – the death benefit is the greater of (a) the Specified Amount of insurance plus your Policy Value on the date of death, or (b) a percentage of the Policy Value (on the date of the insured’s death) equal to the minimum necessary for your Policy to qualify as life insurance under IRC Section 7702. |
Transaction Fees | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
i Maximum Percent of Premium Charge |
i When a premium is paid. |
Maximum Charge: i 8% of each premium payment. 1 | ||
Surrender Charge 2 |
||||
i Maximum Charge |
i When the Policy is surrendered within the first 10 Policy years or within the first 10 years following an increase in the Specified Amount or upon a decrease in the Specified Amount within the first five Policy years. |
The Surrender Charge is a maximum of $ i 45.00 to minimum of $ i 1.80 per $1,000 of Specified Amount or decrease in Specified Amount. 3 |
||
| i Surrender Charge for a representative non-tobacco male insured, age 45 in the first Policy year |
||||
i Maximum Charge |
i When the Policy is surrendered within the first 10 Policy years or within the first 10 years following an increase in the Specified Amount or upon a decrease in the Specified Amount within the first five Policy years. |
$ i 24.00 per $1,000 of Specified Amount or decrease in Specified Amount. 3 | ||
i Partial Withdrawal Processing Fee |
i When you take a partial withdrawal from your Policy. |
Lesser of $25 or i 2.00% of the amount withdrawn. | ||
i Transfer Charge |
i When you make a transfer. |
Maximum Charge $ i 10.00. Current Charge $ i 0.00. 4 | ||
Overloan Protection Benefit Rider |
||||
i Current and Maximum Charge |
i When benefit is exercised. |
One time charge of i 3.50% of Policy Value. | ||
Accelerated Death Benefit Rider |
||||
Transaction Fees | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
i Current and Maximum Charge |
i When benefit is exercised. |
One time charge of 12 months’ worth of Policy charges on the accelerated amount, plus an interest charge, which is equal to 12 months’ worth of interest on the accelerated amount based on a rate that is the greater of (a) the current 90-day Treasury bill rate, or (b) the current maximum statutory adjustable Policy loan rate. | ||
Chronic Illness Accelerated Benefit Rider |
||||
i Current and Maximum Charge |
i When benefit is exercised. |
The Death Benefit will be reduced by the accelerated benefit payment plus an additional interest charge based on the accelerated benefit interest rate and the mortality table declared by the Company for individuals with Chronic Illness. Policy values will also be reduced proportionately. | ||
| 1 | i The Percent of Premium Charge imposed is currently reduced to 5.00% on premiums paid in all Policy years. This reduction is not guaranteed and may change. |
| 2 | Surrender Charges are determined separately for each Policy and take into account the individual underwriting characteristics of the insured, such as sex, age and risk classification, and the Specified Amount of the Policy. The table shows the lowest and highest Surrender Charges for an insured, based on our guaranteed maximum rates for individuals in standard risk classifications. The table also shows the Surrender Charge under a Policy issued to an individual who is representative of individuals we insure. The Surrender Charge shown in the table may not be representative of the charge that you will pay. Your Policy will state your Surrender Charges. More detailed information concerning your Surrender Charge is available from our administrative offices upon request. For additional information on the Surrender Charges, see “What Are the Fees and Charges Under the Policy?—Surrender Charge” in this Prospectus. |
| 3 | i The maximum amount reflects the charge that may be assessed in the first Policy year. |
| 4 | i No transaction fee is currently imposed for making a transfer among Variable Investment Options and/or the Fixed Account Options. While we do not currently intend to impose a transfer fee, we reserve the right to impose a $10 fee in the future on any transfer that exceeds twelve transfers in a Policy year. |
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| BaseContract Charges: |
||||
i Cost of Insurance Charges 5 |
||||
| Maximum Charges |
i Monthly | Maximum of $ i 83.33 to minimum of $ i 0.0067 per $1,000 of Net Amount at Risk. | ||
| Current Charges |
i Monthly | Maximum of $ i 52.0833 to minimum of $ i 0.0053 per $1,000 of Net Amount at Risk. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charge |
i Monthly | $ i 0.2117 per $1,000 of Net Amount at Risk. | ||
| Current Charge |
i Monthly | $ i 0.1799 per $1,000 of Net Amount at Risk. | ||
i Expense charge per $1,000 of Specified Amount 6 |
||||
| Maximum Charge |
i Monthly | The charges range from a maximum of $ i 1.61 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount, to a minimum of $ i 0.35 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount. | ||
| Current Charge |
i Monthly for the first 120 months following the Policy date or an increase in a Policy’s Specified Amount | For first 60 months following the Policy date or an increase in a Policy’s Specified Amount, the charges range from a maximum of $ i 1.21 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount, to a minimum of $ i 0.15 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount. For months 61 through 120 following the Policy date or an increase in a Policy’s Specified Amount, the charges range from a maximum of $0.605 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount, to a minimum of $0.075 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charge |
i Monthly |
$ i 0.50 per $1,000 of initial Specified Amount of insurance or an increase in the Specified Amount. | ||
| Current Charge |
i Monthly for the first 120 months following the Policy date or an increase in the Specified Amount |
For the first 60 months following the Policy date or an increase in the Specified Amount, $ i 0.219 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount. For months 61 through 120 following the Policy date or an increase in the Specified Amount, $0.110 per $1,000 of initial Specified Amount of insurance or increase in Specified Amount. | ||
i Mortality and Expense Risk Asset Charge |
||||
| Maximum Charge |
i Monthly |
i 0.05% monthly (annual rate of 0.6%) of the first $50,000 of Policy Value allocated to the Separate Account and 0.025 % monthly (annual rate of 0.3%) of the Policy Value allocated to the Separate Account in excess of that amount. | ||
| Current Charge |
i Monthly for the first 120 months following the Policy date |
i 0.0125% monthly (annual rate of 0.15%) for the first 120 months following the Policy date of Policy Value allocated to the Separate Account. | ||
i Per Policy Expense Charge 8 |
i Monthly |
Guaranteed Maximum $ i 9.00. Current Charge $ i 8.00. | ||
| i Asset Charge 7 forHigh Cap S&P 500 Indexed Account Uncapped S&P 500 Indexed Account (Limited by Participation Rate) |
i Monthly |
i 0.125% of segment value (annual rate of i 1.50%). i 0.25% of segment value (annual rate of i 3.00%). | ||
i Optional Benefit Charges: |
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Traditional Loans 8 |
||||
| Net Interest Charge 9 |
i End of each Policy year |
Annual rate of i 1.00% until year 11 and then an annual rate of i 0.25%
(after credit from interest paid on collateral held in Traditional Loan Account). 10 | ||
Indexed Loans 8 |
||||
| Net Interest Charge 9 |
i End of each Policy year |
Maximum annual rate of i 5.00%. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| i AccidentalDeath Benefit Rider: |
||||
Cost of Insurance 11 |
||||
| Current and Maximum Charges |
i Monthly | Maximum of $ i 0.1108 to minimum of $ i 0.0533, per $1,000 of accidental death benefit. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
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| Current and Maximum Charges |
i Monthly | $ i 0.0592 per $1,000 of accidental death benefit. | ||
| i AdditionalInsured Term Insurance Rider: |
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Cost of Insurance 11 |
||||
| Maximum Charges |
i Monthly | Maximum of $ i 83.33 to minimum of $ i 0.0067 per $1,000 of additional insured term insurance benefit. | ||
| Current Charges |
i Monthly | Maximum of $ i 52.0833 to minimum of $ i 0.0053 per $1,000 of additional insured term insurance benefit. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charges |
i Monthly | $ i 0.2117 per $1,000 of additional insured term insurance benefit. | ||
| Current Charge |
i Monthly | $ i 0.1799 per $1,000 of additional insured term insurance benefit. | ||
Administrative Charges |
||||
| Monthly during the first year of the Rider and/or the first year of an increase in term insurance benefit under the Rider | $0.10 per $1,000 of additional insured term insurance benefit. | |||
| i EarlySurrender Value Rider 16 : |
||||
| Maximum Charges |
i Monthly for the first 10 years of the Policy or the first 10 years after an increase in the Specified Amount of insurance of the Policy or term insurance benefit, as applicable | Maximum of $ i 0.52 to minimum of $ i 0.20 per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| Current Charges |
i Monthly for the first 10 years of the Policy or the first 10 years after an increase in the Specified Amount of insurance of the Policy or term insurance benefit, as applicable | Maximum of $ i 0.075 to minimum of $ i 0.02 per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charge |
i Monthly | $ i 0.32 per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
| Current Charge |
i Monthly | $ i 0.045 per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
i Children’s Term Insurance Rider: |
||||
| Cost of Insurance Charges | ||||
| Maximum Charges |
i Monthly | $ i 0.24 per $1,000 of children’s term insurance benefit. | ||
| Current Charges |
i Monthly | $ i 0.15 per $1,000 of children’s term insurance benefit. | ||
i Disability Waiver of Monthly Deductions Rider: |
||||
| Cost of Insurance Charges 11,15 |
||||
| Maximum Charges |
i Monthly | Maximum of $ i 0.5992 to minimum of $ i 0.0117 per $1,000 of Net Amount at Risk. | ||
| Current Charges |
i Monthly | Maximum of $ i 0.3192 to minimum of $ i 0.0092 per $1,000 of Net Amount at Risk. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charge |
i Monthly | $ i 0.0508 per $1,000 of Net Amount at Risk. | ||
| Current Charge |
i Monthly | $ i 0.0275 per $1,000 of Net Amount at Risk. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| i If the Policy also has a Children’s Term Insurance Rider in addition to one of the Disability Waiver Riders |
i Monthly | Maximum between $ i 0.0092 and $0.0408 to minimum between $ i 0.0050 and $0.0242 per $1,000 of children’s term insurance benefit. | ||
| i If the Policy also has an Additional Insured Term Insurance Rider in addition to one of the Disability Waiver Riders |
i Monthly | Maximum between $ i 0.0083 and $3.2675 to minimum between $ i 0.0050 and $2.33 per $1,000 of children’s term insurance benefit. | ||
Disability Completion Benefit (AKA Disability Waiver of Stipulated Premium) Rider 13 : |
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i Disability Waiver of Monthly Deductions Benefit |
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Cost of Insurance Charges 11,15 |
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| Maximum Charges |
i Monthly | Maximum of $ i 0.5992 to minimum of $ i 0.0117 per $1,000 of Net Amount at Risk. | ||
| Current Charges |
i Monthly | Maximum of $ i 0.3192 to minimum of $ i 0.0092, per $1,000 of Net Amount at Risk. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
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| Maximum Charge |
i Monthly | $ i 0.0508 per $1,000 of Net Amount at Risk. | ||
| Current Charge |
i Monthly | $ i 0.0275 per $1,000 of Net Amount at Risk. | ||
i Disability Waiver of Stipulated Premium Benefit |
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| Cost of Insurance Charges 11 |
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| Current and Maximum Charges |
i Monthly | Maximum of $ i 0.96 to minimum of $ i 0.03 per $100 of the stipulated premium in the Policy. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
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| Maximum and Current Charges |
i Monthly | $ i 0.12 per $100 of the stipulated premium in the Policy. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
i Cash Value Enhancement Rider 12, 16 : |
||||
Expense Charge |
||||
| Maximum Charges |
i Monthly for the first 10 Policy years. | Maximum of $ i 0.605 to minimum of $ i 0.20 per $1,000 of Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider | ||
| Current Charges |
i Monthly for the first 10 Policy years. | Maximum of $ i 0.225 to minimum of $ i 0.07 per $1,000 of Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charges |
i Monthly for the first 10 Policy years | $ i 0.360 per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
| Current Charges |
i Monthly for the first 10 Policy years | $ i 0.165 for Policy years one through three and $ i 0.045 for Policy years four through 10. This charge is per $1,000 of original or increase in Specified Amount of insurance of the Policy plus any term insurance benefit of a Supplemental Term Insurance Rider. | ||
i Guaranteed Option to Increase Specified Amount Rider: |
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| Cost of Insurance Charges 11 |
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| Current and Maximum Charges |
i Monthly | Maximum of $ i 0.1967 to minimum of $ i 0.0442 per $1,000 of the Specified Amount of this Rider. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
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| Current and Maximum Charges |
i Monthly | $ i 0.1133 per $1,000 of the Specified Amount of this Rider. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
i Supplemental Term Insurance Rider: 14,15 |
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| Surrender Charge |
i When the Policy is surrendered within the first 10 Policy years or within the first 10 years following an increase in the term insurance benefit or upon a decrease in the term insurance benefit within in the first five Policy years |
The Surrender Charge is a maximum of $ i 45.00 to minimum of $ i 1.80
per $1,000 of Specified Amount or decrease in Specified Amount. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
$ i 24.00 per $1,000 of the term insurance benefit or decrease in this benefit all multiplied by the surrender factor of 100%. | |||
Cost of Insurance Charges 11 |
||||
| Maximum Charges |
i Monthly |
Maximum of $ i 83.33 to minimum of $ i 0.0067
per $1,000 of Net Amount at Risk attributable to the term insurance benefit. | ||
| Current Charges |
i Monthly |
Maximum of $ i 52.0833 to minimum of $ i 0.0053
per $1,000 of Net Amount at Risk attributable to the term insurance benefit. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
||||
| Maximum Charge |
i Monthly |
$ i 0.2117 per $1,000 of Net Amount at Risk attributable to the term insurance benefit. | ||
| Current Charge |
i Monthly |
$ i 0.1799 per $1,000 of Net Amount at Risk attributable to the term insurance benefit. | ||
Expense Charge 16 |
||||
| Maximum Charge |
i Monthly |
The charges range from a maximum of $ i 1.71 per $1,000 of the initial term insurance benefit or increase of the term insurance benefit to a minimum of $ i 0.40
per $1,000 of the initial term insurance benefit or increase of the term insurance benefit. | ||
Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses | ||||
Charge |
When Charge is Deducted |
Amount Deducted | ||
| Current Charge |
i Monthly for the first 60 months following the Policy date or an increase in the term insurance benefit | The charges range from a maximum of $ i 1.331 per $1,000 of the initial term insurance benefit or increase of the term insurance benefit to a minimum of $ i 0.180 per $1,000 of the initial term insurance benefit or increase of the term insurance benefit. After 60 months, the charge is zero. | ||
| i First year charge for a representative non-tobacco male insured, age 45 |
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| Maximum Charge |
i Monthly | $ i 0.80 per $1,000 of the term insurance benefit or increase of the term insurance benefit. | ||
| Current Charge |
i Monthly | $ i 0.252 per $1,000 of the term insurance benefit or increase of the term insurance benefit. | ||
| 3 | The maximum amount reflects the charge that may be assessed in the first Policy year. |
| 5 | i The Cost of Insurance Charges under the Policies vary depending on the individual circumstances of the insured, such as sex, age, and risk classification. The charges also vary depending on the amount of insurance specified in the Policy and the Policy year in which the charge is deducted. The table shows the lowest and the highest Cost of Insurance Charges for an insured, based on our current rates and on guaranteed maximum rates for individuals in standard risk classifications. The table also shows the first year Cost of Insurance Charges under a Policy issued to an individual who
is representative of individuals we insure. The charge shown in the table may not be representative of the charge that you will pay. Your Policy will state your guaranteed maximum Cost of Insurance Charges. More detailed information concerning your Cost of Insurance Charges is available from our administrative offices upon request. Also, before you purchase the Policy, we will provide you with hypothetical illustrations of Policy Values based upon the insured’s age and risk classification, the amount of insurance specified in the Policy, planned periodic premiums, and riders requested. The Net Amount at Risk referred to in the tables is based upon the difference between the current death benefit provided under the Policy and the current value of the Policy. For additional information on Cost of Insurance Charges, see “What Are the Fees and Charges Under the Policy? — Monthly Deductions — Cost of Insurance Charge” in this Prospectus. |
| 6 | i The Expense Charge per $1,000 of Specified Amount are currently reduced. During the first 60 months following the Policy date, the charges range from $0.15 per $1,000 of initial Specified Amount of insurance to $1.21 per $1,000 of initial Specified Amount of insurance. For months 61 through 120 following the Policy date, the charges range from $0.08 per $1,000 of initial Specified Amount of insurance up to $0.61 per $1,000 of initial Specified Amount of insurance. The charge on an additional Specified Amount of insurance is similarly reduced. The Expense
Charges under the Policies vary depending on the risk classification, sex, and age of the insured and the amount of insurance specified in the Policy. The table shows the lowest and the highest Expense Charges for an insured, based on our current rates and on guaranteed maximum rates. The table also shows the first year Expense Charges under a Policy issued to an individual who is representative of individuals we insure. The charge shown in the table may not be representative of the charge that you will pay. Your Policy will state the guaranteed maximum Expense Charges. More detailed information concerning your Expense Charges is available from our administrative offices upon request. For additional information on Expense Charges, see “What Are the Fees and Charges Under the Policy? — Monthly Deductions — Expense Charge per Thousand of Specified Amount” in this Prospectus. |
| 7 | i The Asset Charge is assessed to help cover administrative and other expenses, including but not limited to the cost of hedging, associated with making available the Indexed Fixed Accounts. |
| 8 | i You may borrow up to 99% of your Cash Surrender Value. The minimum amount you may borrow is $250. An amount equivalent to the loan is withdrawn from the Variable Investment Options and certain accounts in the Fixed Account Options on a pro-rata basis and is transferred to a Policy loan account, as collateral for the loan. See “Policy Loans” in this Prospectus and “Appendix B” for additional information about Policy loans. |
| 9 | Net Interest Charge for a loan means the difference between the amount of interest we charge on the loan and the amount of interest we credit to your Policy in the Policy loan accounts. |
10 |
The Traditional Loan Account is guaranteed to earn interest at 1.00% during the first 10 Policy years and 1.75% thereafter. On a guaranteed basis, the Net Interest Charge during the first 10 Policy years is 1.00% and 0.25% thereafter. On a current basis, the Net Interest Charge during the first five Policy years is 1.00% and 0.00% thereafter. |
| 11 | i i i i i i i The
Cost of Insurance Charges under the Riders vary depending on the individual circumstances of the insured, such as sex, age, and risk classification. The charges also vary depending on the amount of insurance specified in the Rider and the year in which the charge is deducted. The charges shown in the table may not be representative of the charge you would pay. The table shows the lowest and the highest Cost of Insurance Charges for an insured, based on current rates and on guaranteed maximum rates for individuals in standard risk classifications. The table also shows the first year Cost of Insurance Charges under a Rider issued to an individual who is representative of individuals we insure. The Policy Specifications Page will indicate the guaranteed maximum Cost of Insurance Charges for the Rider applicable to your Policy. More detailed information concerning your Cost of Insurance Charges is available from our administrative offices upon request. Also, before you purchase
the Policy, we will provide you with hypothetical illustrations of Policy Values based upon the insured’s age and risk classification, the amount of insurance specified in the Policy, planned periodic premiums, and Riders requested. The Net Amount at Risk referred to in the table is based upon the difference between the current benefit provided under the Rider and the current Policy Value allocated to the Rider. For additional information about the Riders, see “What Are the Supplemental Riders and Benefits That Are Available?” in this Prospectus. / / / / / /
|
| 12 | i This Rider is not available to all persons. See “What Are the Supplemental Riders and Benefits That Are Available? — Early Surrender Value Rider” or “What Are the Supplemental Riders and Benefits That Are Available? — Cash Value Enhancement Rider” in this Prospectus for additional information. |
| 13 | i The Disability Completion Benefit Rider (AKA Disability Waiver of Stipulated Premium) consists of two benefits, the Disability Waiver of Monthly Deductions plus the Disability Waiver of Stipulated Premium Benefit, and is therefore subject to two separate charges for the two benefits. |
| 14 | i For purposes of determining the allocation of Net Amount at Risk between the Specified Amount of insurance in the Policy, and the term insurance benefit, the Policy Value will be allocated as follows: first to the initial Specified Amount coverage segment, then to any coverage segments resulting from increases in the Specified Amount in the order of the increases, to the initial term insurance benefit coverage segment, and then to any coverage segments resulting from increases in the term insurance benefit in the order of the increases.
Any increase in the death benefit in order to maintain the required minimum margin between the death benefit and the Policy Value will be allocated to the most recent increase in the Specified Amount in the Policy. |
| 15 | The Surrender Charge takes into account the individual underwriting characteristics of the insured, such as sex, age and risk classification, and the term insurance benefit of the Policy. The table shows the lowest and the highest Surrender Charge for an insured, based on our current rates and on guaranteed maximum rates for individuals in standard risk classifications. The table also shows the Surrender Charge under a rider issued to an individual who is representative of individuals we insure. The Surrender Charge shown in the table may not be representative of the charge that you will pay. Your Policy will state your Surrender Charge for the Policy and rider. More detailed information concerning your Surrender Charge is available from our administrative offices upon request. For additional information on the Surrender Charge, see “What are the Fees and Charges under the Policy?—Surrender Charge” in this Prospectus. |
| 16 | i The Charge takes into account the individual underwriting characteristics of the insured, such as sex, age and risk classification, and the term insurance benefit of the Policy. The table shows the lowest and the highest Charge for an insured, based on our current rates and on guaranteed maximum rates for individuals in standard risk classifications. The table also shows the Charge under a rider issued to an individual who is representative of individuals we insure. The Charge shown in the table may not be representative of the charge that you will pay. Your Policy will state your Charge
for the Policy and rider. More detailed information concerning your Charge is available from our administrative offices upon request. |
Annual Portfolio Expenses 1 |
Minimum |
Maximum |
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| i (expenses that are deducted from Portfolio assets, including management fees, distribution (12b-1) fees, and other expenses) |
i 0.11% | i 0.41% | ||||||
| 1 | i Expressed as a percentage of average net assets for the fiscal year ended December 31, 2022. Portfolio expenses may be higher or lower in the future. This information is provided by the Portfolios and their agents. The information is based on 2022 expenses. We have not verified the accuracy of the information provided by the Portfolios. |
• |
portfolio management decisions driven by the need to maintain higher than normal liquidity or the inability to sustain an investment objective; |
• |
increased administrative and Portfolio brokerage expenses; and/or |
• |
dilution of the interests of long-term investors. |
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• |
Determine when and how much premium you pay to us |
• |
Determine when and how much to allocate to the Variable Investment Options and to the Fixed Account Options |
• |
Borrow money |
• |
Change the beneficiary |
• |
Change the amount of insurance protection |
• |
Change the death benefit option you have selected |
• |
Surrender your Policy for its Net Cash Surrender Value |
• |
Take partial withdrawals from your Policy (up to the Net Cash Surrender Value amount) |
• |
Choose the form in which you would like the death benefit or other proceeds paid out from your Policy |
• |
by wire or by exchange from another insurance company; |
• |
via an electronic funds transfer program (any owner interested in making monthly premium payments must use this method); |
• |
on-line at www.pennmutual.com for initial premium payments which will be drawn electronically from your bank account (you will need to have your Policy number and checking or savings account information on hand); or |
• |
if we agree to it, through a salary deduction plan with your employer. |
| (a) | is the total premiums you have paid, less any partial withdrawals you made; and |
| (b) | is the “no-lapse premium” specified in your Policy, multiplied by the number of months the Policy has been in force. |
| (a) | is the net asset value per share of the Portfolio held in the subaccount, as of the end of the current valuation period, plus the per share amount of any dividend or capital gain distributions by the Portfolio if the “ex-dividend date” occurs in the valuation period; and |
| (b) | is the net asset value per share of the Portfolio held in the subaccount as of the end of the last prior valuation period. |
• |
i Option 1. |
• |
i Option 2. plus |
• |
after the change, the Specified Amount of insurance must be at least equal to the minimum Specified Amount under your Policy; and |
• |
no change may be made in the first Policy year and no more than one change may be made in any Policy year. |
• |
you must submit an application along with evidence of insurability acceptable to PIA; |
• |
no change may be made in the first Policy year; |
• |
any increase in the Specified Amount must be at least $10,000; and |
• |
no change may be made if it would cause the Policy not to qualify as insurance under federal income tax law. |
• |
no change may be made in the first Policy year; |
• |
no change may be made if it would cause the Policy not to qualify as insurance under federal income tax law; |
• |
no decrease may be made within one year of an increase in the Specified Amount; |
• |
any decrease in the Specified Amount of insurance must be at least $10,000 and the Specified Amount after the decrease must be at least equal to the minimum Specified Amount under your Policy; and |
• |
any decrease in the Specified Amount of insurance in the first five Policy years will be subject to a Surrender Charge. |
• |
the Net Premiums you have paid (your premiums less the Percent of Premium Charges); |
• |
plus or minus the investment results in the part of your Policy Value allocated to the Variable Investment Options; |
• |
plus interest credited to the amount in the part of your Policy Value (if any) allocated to the Fixed Account Options; |
• |
minus Policy charges we deduct; and |
• |
minus partial withdrawals you have made. |
| (a) | restricting the dollar amount, the number of transfers made during a defined period, and the method used to submit transfers (this could include not allowing telephone, internet, or other electronic transfers); |
| (b) | waiving or reducing any or all of the restrictions, uniformly to all members of the same class of Policies, on transfers described in this Policy; |
| (c) | revoking any waiver or reduction, uniformly to all members of the same class of Policies; and |
| (d) | terminating transfer privileges at any time (for all, some, or specific Policy owners). |
• |
Cost of Insurance Charge. non-tobacco, preferred non-tobacco or preferred plus non-tobacco rate class. We may also place certain people in a rate class involving a higher mortality risk than the standard tobacco or standard non-tobacco classes (a “substandard class”). Insureds age 19 and under are placed in a rate class that does not distinguish between tobacco and non-tobacco rates. When an increase in the Specified Amount of insurance is requested, we determine whether a different rate will apply to the increase based
on the age of the insured on the effective date of the increase and the rate class of the insured on that date. |
• |
Per Policy Expense Charge. |
• |
Expense Charge per Thousand of Specified Amount. |
• |
Mortality and Expense Risk Asset Charge. |
• |
Optional Supplemental Rider Charges. |
| upon exercise of certain rider benefits). Please see the Fee Table “Periodic Charges under the Policy Other than the Portfolios’ Annual Operating Expenses” in this Prospectus and “What are the Supplemental Riders and Benefits That Are Available?” for more information about these charges. |
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Accidental Death Benefit Rider |
i Provides an additional death benefit if the insured’s death results from an accidental cause, as defined in the Rider. | i Optional. May be elected at any time. | i • Not available for all Policies. • We will pay the additional death benefit only if the insured dies within 180 days following the accidental bodily injury. • No benefit is payable unless the accidental bodily injury was sustained after the Policy anniversary nearest to the insured’s first birthday and prior to the Policy anniversary nearest to the insured’s 70th birthday. • Certain exclusions apply, including death resulting directly or indirectly
from risky activities (such as bungee jumping and skydiving), disease, infection, intoxication, illegal drugs, crimes, illegal occupation, suicide, etc. | |||
i Additional Insured Term Insurance Rider |
i Provides term insurance on other persons in addition to the insured, in amounts specified in the Policy Specifications Page in the Policy. | i Optional. May be elected at any time, as long as the insured meets our underwriting requirements. | i • Additional insured must meet underwriting requirements. | |||
i Early Surrender Value Rider |
i Provides enhanced early year Cash Surrender Values for Policies sold in certain limited corporate markets. | i Optional. May be elected only at the time the base Policy is issued. | i • Not for sale in individual markets. • If the Rider is terminated by the owner of the Policy, the Rider is terminated with respect to the insurance coverage provided under the Policy and all applicable Surrender Charges would resume. • Not available with the Cash Value Enhancement Rider. | |||
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Cash Value Enhancement Rider |
i Provides higher early-duration Cash Surrender Values for certain limited corporate market applications. | i Optional. May be elected only at the time the base Policy is issued. | i • Not available for sale in individual markets. • The Policy must be sponsored by or owned by a business, corporation, or a corporate trust. • The corporation must be at least a partial beneficiary. • A minimum of one life can be covered. • The termination credit will not be applied if the Policy to which this Rider is attached is exchanged for another policy or has its ownership changed to a life insurance
company. • Not available with the Early Surrender Value Rider. | |||
i Children’s Term Insurance Rider |
i Provides term insurance on one or more children of the insured. | i Optional. May be elected at any time. | i • If the named insured in the Policy dies, the term insurance on the insured child will continue until the anniversary of the Policy nearest the insured child’s twenty-third birthday. | |||
i Disability Waiver of Monthly Deductions Rider |
i Provides a waiver of the Monthly Deductions from the value of the Policy Value upon the total disability of the insured. | i Optional. May be elected at any time, as long as the insured meets our underwriting requirements. | i • Monthly Deductions for this benefit are made until the Policy anniversary nearest the insured’s 65th birthday. • Will terminate upon the anniversary of the Policy which is nearest to the insured’s 65th birthday, provided that such termination will not affect any benefit which is payable because of a total disability of the insured prior to that anniversary. | |||
i Disability Completion Benefit Rider (AKA Disability Waiver of Stipulated Premium Rider) |
i Provides a waiver of the Monthly Deductions from the Policy Value and payment by us of a stipulated premium upon the totally disability of the insured, as stated in the Policy. | i Optional. May be elected at any time, as long as the insured meets our underwriting requirements. | i • Will terminate upon the anniversary of the Policy which is nearest to the insured’s 65 th birthday, provided that such termination will not affect any benefit which is payable because of a total disability of the insured prior to that anniversary. | |||
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Guaranteed Option to Increase Specified Amount Rider |
i Provides the owner of the Policy with the option to increase the Specified Amount of insurance in the Policy without providing evidence of insurability. | i Optional. May be elected only at the time the insured purchases the base Policy. | i • The option may be exercised under the Rider as of any of the regular option dates or as of any alternative option date. • Regular option dates are the anniversaries of the Policy nearest the insured’s birthday at ages 22, 25, 28, 31, 34, 37, 40, 43 and 46. • Alternative option dates are the 90 th day following marriage of the insured, live birth of a child of the insured or legal adoption by the insured of a child less than 18 years of age, subject
to certain conditions.• The maximum issue age for this Rider is age 40. | |||
i Supplemental Term Insurance Rider |
i Adds term insurance to the death benefit provided under the Policy. | i Optional. May be elected only at the time the insured purchases the base Policy. | i • Monthly Deductions include an expense charge applied to the amount of term insurance added to the Policy by the Rider. • Monthly Deductions will include a Cost of Insurance Charge for the term insurance added by the Rider. | |||
i Supplemental Exchange Rider |
i Provides within one year following termination of a business relationship between the owner of the Policy and the insured, the Policy may be exchanged for a new Policy on the life of a new insured. | i Standard for all corporate-owned Policies. | i • The new insured must have the same business relationship to the owner as the insured under the Policy to be exchanged. • The new insured must submit satisfactory evidence of insurability. • The Policy to be exchanged must be in force and not in a grace period. • The owner must make premium payments under the new Policy to keep it in force at least two months. • Owner must surrender all rights in the Policy
to be exchanged. | |||
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Overloan Protection Rider |
i Allows the Policy owner to access the cash value from the Policy, while providing the holder with a reduced paid-up policy in the event that the loan-to-surrender |
i Optional. May be elected at any time. | i • Insured’s attained age must be 75 or older. • Policy must be in force for a minimum for 15 years. • Non-taxable withdrawals must equal the total premiums paid.• Subject to a one-time charge of 3.50% of the Policy Value, which is imposed when the Rider is exercised.• Certain changes are made to the Policy as a result of the benefit being exercised. |
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i Accelerated Death Benefit Rider |
i Provides the insured access to a portion of death benefit while the insured is living. | i Standard. | i • Amount of death benefit proceeds the insured can access must be at least $10,000, but no more than the lesser of 50% of the total death benefit amount or $250,000. Such limits may vary depending upon the state. • Insured must be diagnosed by a licensed physician of the United States as being terminally ill with a life expectance of 12 months or less. The physician may not be the owner, insured, beneficiary, or relative of the insured. • Electing this Rider will reduce the death benefit
that is payable under the base Policy upon the death of the insured. | |||
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Chronic Illness Accelerated Benefit Rider |
i Provides access to a portion of the death benefit while the insured is living if the insured is certified with a chronic illness. |
i Standard for Policies with a Specified Amount greater than $50,000 and a maximum amount of $10,000,000 as long as the insured meets our underwriting requirements. |
i • Continuous care in an eligible facility or at home must be expected to be required for the insured’s life. • Limits apply to the accelerated benefit payments. • In certain circumstances, a payment under this rider may be treated as a distribution of taxable income. Before you exercise your rights under this rider, you should consult with a competent tax adviser regarding the possible tax consequences. • Chronic
illness is defined in the Rider (based on inability to perform specified activities of daily living, or severe cognitive impairment). • Chronic illness must be certified by a licensed health care professional (not the insured, owner, or beneficiary or a relative of any of them). • Upon each accelerated benefit payment, the death benefit will be reduced by an amount greater than the payment amount. • The death benefit will be reduced by the accelerated benefit payment plus an additional interest charge based on the accelerated benefit interest rate and the mortality table declared by the Company for individuals with Chronic Illness. Policy values will also be reduced proportionately. | |||
i Fixed Dollar Cost Averaging Account |
i Allows you to allocate all or a portion of a premium payment to the Fixed Dollar Cost Averaging Account. Premiums allocated to the account will be automatically re-allocated each month to one or more of the Variable Investment Options and/or to one or more of the Indexed Fixed Accounts you select. |
i Optional. |
i • Requires that at least $600 be allocated to the Fixed Dollar Cost Averaging Account. • The amount transferred each month must be at least $25. • Does not guarantee a profit or prevent a loss. • Not available at the same time as the Asset Rebalancing program. | |||
| Name of Benefit |
Purpose |
Is this Benefit Standard or Optional? |
Brief Description of Restrictions/Limitations | |||
i Asset Rebalancing |
i Automatically reallocates your Policy Value among the Variable Investment Options in accordance with the proportions you originally selected. | i Optional. | i • Requires a minimum Policy Value of $1,000. • Does not guarantee a profit or prevent a loss. • Not available at the same time as the Fixed Dollar Cost Averaging Account program. | |||
| i No-Lapse Feature | i Guarantees that your Policy will remain in force, regardless of investment performance for a specified period as long as certain provisions of the no-lapse feature are satisfied. | i Standard | i • The no lapse period is determined at issue. • Policy distributions will affect the no-lapse guarantee and outstanding loans will nullify the no-lapse guarantee in certain instances. • If the no-lapse feature terminates, you have the option to reinstate it. | |||
| i Traditional Loan Option | i Allows you to access a portion of your Policy Value without incurring the Surrender Charges and federal income tax consequences associated with a withdrawal. | i Optional. | i • You may borrow up to 99% of your Cash Surrender Value. • The minimum amount you may borrow is $250. • Cannot be active at the same time as an Indexed Loan. • A 12 month Lockout Period will begin anytime a Policy loan is taken while any Policy Value is in the Indexed Fixed Accounts. | |||
| i Indexed Loan Option | i Allows you to access a portion of your Policy Value without incurring the Surrender Charges and federal income tax consequences associated with a withdrawal. | i Optional. | i • You may borrow up to 99% of your Cash Surrender Value. • The minimum amount you may borrow is $250. • Cannot be active at the same time as an Traditional Loan. • A 12 month Lockout Period will begin anytime a Policy loan is taken while any Policy Value is in the Indexed Fixed Accounts. | |||
| (a) | the insured has died due to an accidental bodily injury that occurred while this Rider was in force; |
| (b) | the accidental death occurred within 180 days following the date of the accidental bodily injury; |
| (c) | the accidental bodily injury was sustained prior to the anniversary of this Policy which is nearest to the insured’s 70th birthday; and |
| (d) | if this Rider was issued prior to the insured’s first birthday, the accidental bodily injury was sustained on or after the anniversary of this Policy which is nearest to the insured’s first birthday. |
• |
disease or infirmity of mind or body, or medical or surgical treatment for such disease or infirmity; |
• |
an infection not occurring as a direct result or consequence of the accidental bodily injury; |
• |
the voluntary intake or use by any means of any drug, unless prescribed or administered by a physician and taken in accordance with the physician’s instructions; |
• |
intoxication as defined by the jurisdiction where the accident occurred; |
• |
certain risky recreational activities, including bungee jumping, rock or mountain climbing, hang gliding, and skydiving; |
• |
suicide, or intentionally self-inflicted injury, of the insured, while sane or insane; |
• |
the commission or attempted commission by the insured of a felony or other participation in an illegal occupation or activity; |
• |
travel or flight in or descent from an aircraft of any kind while the insured is a pilot, officer, or member of the crew of the aircraft; |
• |
war or act of war, or other special hazards incident to service in the military, naval or air forces of any country. |
• |
$500,000 Specified Amount |
• |
$50,000 Net Cash Surrender Value (prior to the termination credit) |
• |
$9,000 Total accumulated Monthly Deductions through year 3 |
• |
75% termination factor |
• |
$12,000 Surrender Charge |
| (a) | results from bodily injury or disease; and |
| (b) | (1) during the first 24 months of Total Disability, the insured is unable to perform the substantial and material duties of their job, due to sickness or accidental bodily injury; and |
| (2) after the first 24 months of Total Disability, the insured, due to sickness or accidental bodily injury, is unable to perform any of the substantial and material duties of any job for which they become reasonably suited by education, training or experience. |
| (a) | the sight of both eyes; |
| (b) | the use of both hands or of both feet; |
| (c) | the use of one hand and one foot; |
| (d) | speech; or |
| (e) | hearing of both ears. |
| (a) | any attempt at suicide, or intentionally self-inflicted injury, while sane or insane; |
| (b) | war or an act of war, while the Insured is in the military, naval or air force of any country, group of countries or international organization; |
| (c) | active participation in a riot, insurrection or terrorist activity; |
| (d) | committing or attempting to commit a felony; |
| (e) | voluntary intake or use by any means of any drug, unless prescribed or administered by a physician and taken in accordance with the physician’s instructions; |
| (f) | voluntary intake or use by any means of poison, gas or fumes, unless a direct result of an occupational accident; |
| (g) | intoxication as defined by the jurisdiction where the disability occurred; or |
| (h) | participation in an illegal occupation or activity. |
| (a) | results from bodily injury or disease; and |
| (b) | (1) during the first 24 months of Total Disability, the insured is unable to perform the substantial and material duties of their job, due to sickness or accidental bodily injury; and |
| (2) after the first 24 months of Total Disability, the insured, due to sickness or accidental bodily injury, is unable to perform any of the substantial and material duties of any job for which they become reasonably suited by education, training or experience. |
| (a) | the sight of both eyes; |
| (b) | the use of both hands or of both feet; |
| (c) | the use of one hand and one foot; |
| (d) | speech; or |
| (e) | hearing of both ears. |
| (a) | any attempt at suicide, or intentionally self-inflicted injury, while sane or insane; |
| (b) | war or an act of war, while the Insured is in the military, naval or air force of any country, group of countries or international organization; |
| (c) | active participation in a riot, insurrection or terrorist activity; |
| (d) | committing or attempting to commit a felony; |
| (e) | voluntary intake or use by any means of any drug, unless prescribed or administered by a physician and taken in accordance with the physician’s instructions; |
| (f) | voluntary intake or use by any means of poison, gas or fumes, unless a direct result of an occupational accident; |
| (g) | intoxication as defined by the jurisdiction where the disability occurred; or |
| (h) | participation in an illegal occupation or activity. |
| (a) | is the current value in the applicable account; |
| (b) | is the term insurance benefit; and |
| (c) | is the sum of the term insurance benefit and the Specified Amount of the Policy. |
• |
The Specified Amount of the paid-up life insurance which equals the applicable percentage of the Policy Value adjusted for the one-time charge; or |
• |
The applicable percentage of the greater of the Policy Value or the outstanding Policy Debt. |
• |
the transfer of all values not in the Traditional Fixed Account to the Traditional Fixed Account, which will then be credited with interest; |
• |
if the Policy has an increasing death benefit option, it will be changed to the level death benefit option; |
• |
if the current loan option is the Indexed Loan option it will be changed to the Traditional Loan option; |
• |
all supplemental riders attached to the Policy will be terminated; |
• |
no additional premium payments, partial withdrawals or Policy loans will be allowed; and |
• |
no further changes may be made to the Policy. |
| (1) | A withdrawal of $150,000 (the remaining basis) is taken with a withdrawal charge of $25 assessed. |
| (2) | A Rider charge of $6,427 is assessed. |
| (3) | The Specified Amount of the Policy is reduced to $186,072. |
| (4) | Lapses are prevented on the Policy. |
• |
The amount of death benefit proceeds you can access must be at least $10,000, but no more than the lesser of 50% of the total death benefit amount or $250,000. |
• |
The insured must be diagnosed by a licensed physician of the United States as being terminally ill with a life expectancy of 12 months or less. The physician may not be the owner, insured, beneficiary, or relative of the insured. |
• |
PIA reserves the right, at its own expense, to seek additional medical opinions in order to determine benefit eligibility. |
• |
The Policy owner may request the payment of the accelerated benefit payment in a single lump sum or in a series of equal payments occurring annually, semi-annually, quarterly, or monthly. The series of benefit payments will continue as scheduled, as long as the insured is certified as having a Chronic Illness at least every 12 months, until the remaining death benefit reaches the minimum allowed by the Company or the Rider is terminated. No more than 12 accelerated benefit payments will be paid in a 12 month period. The accelerated benefit payment must first be used to repay a pro rata share of any outstanding Policy Debt. |
• |
PIA will limit the accelerated benefit payment such that: |
| • | The Policy is not disqualified as life insurance according to the Code; |
| • | The accelerated benefit payment is at least $4,800 if taken as a single lump sum, or the sum of scheduled payments for the 12 month period following the election date is at least $4,800 if taken as a series of payments; |
| • | The maximum total amount of accelerated benefit payments in a 12 month period, for all Policies or Riders under which the insured is covered with the Company, will not exceed the least of 24% of the eligible amount, $240,000, or the annual Per Diem Limitation within the meaning of sections 101(g)(3)(D) and 7702B(d) of the Code. The Per Diem Limitation further requires that the total aggregated benefits being received from all coverages do not exceed the IRS annual Per Diem amount, including benefits received from coverages not with PIA and reimbursements of costs for qualified long-term care services through insurance or otherwise. Accelerated benefit payments are determined after taking into account all other coverage and reimbursements; |
| • | The maximum total amount of accelerated benefit payments during the life of the insured, for all Policies or Riders under which the insured is covered with PIA and its affiliates, will not exceed $5,000,000 |
| • | The death benefit remaining after an accelerated benefit payment is not less than $50,000. |
• |
Chronic Illness means that the insured has been certified by a licensed health care practitioner within the last 12 months as: |
| • | Being unable to perform at least two activities of daily living (bathing, continence, dressing, eating, toileting, transferring) without substantial assistance from another person due to a loss of functional capacity for a period of at least 90 days (which must be consecutive, except in California); or |
| • | Requiring substantial supervision by another person for a period of at least 90 days (which must be consecutive, except in California) to protect the insured from threats to health and safety due to severe cognitive impairment. |
• |
Severe cognitive Impairment means deterioration or loss in intellectual capacity that is: |
| (1) | Comparable to (and includes) Alzheimer’s disease and similar forms of irreversible dementia; and |
| (2) | Measured by clinical evidence and standardized tests which reliably measure impairment in: |
| (a) | Short term or long term memory; |
| (b) | Orientation to people, places, or time; and |
| (c) | Deductive or abstract reasoning. |
• |
For each lump sum benefit payment, or at the beginning of each 12 month period following the election date if benefit payments are scheduled in a series, PIA must receive written certification from a licensed health care practitioner that the insured has a Chronic Illness. The licensed health care practitioner may be a licensed physician, registered professional nurse, licensed social worker, or other similar health care practitioner approved by the IRS and PIA. The licensed health care practitioner shall not be the insured, owner, beneficiary, or a relative thereof. PIA reserves the right to obtain at any time an additional opinion of the insured’s condition from a licensed health care practitioner at PIA’s expense. Should this opinion differ from that of the insured’s licensed health care practitioner, eligibility for benefits will be determined by a third licensed health care practitioner who is mutually acceptable to the owner and PIA.
|
| (a) | is the total premiums you have paid, less any partial withdrawals you made; and |
| (b) | is the “no-lapse premium” specified in your Policy, multiplied by the number of months the Policy has been in force. |
• |
no more than twelve partial withdrawals may be made in a Policy year; |
• |
each partial withdrawal must be at least $250; |
• |
a partial withdrawal may not be made from an account if the amount remaining in that account would be less than $25; |
• |
the partial withdrawal may not reduce the Specified Amount of insurance under your Policy to less than the minimum Specified Amount under the Policy ($50,000); and |
• |
the partial withdrawal will be subject to a processing fee equal to the lesser of $25 or 2.00% of the amount withdrawn. |
• |
Option 1 - Interest Income - we will credit interest to the amount applied, and the interest will be paid monthly, quarterly, semiannually or annually. |
• |
Option 2 - Income for a Fixed Period - we will pay the amount applied, with interest, in equal monthly payments for a fixed period. The fixed period may not be greater than 30 years. |
• |
Option 3 - Income of a Specified Amount - we will make payments of a specified amount until the total amount applied, with interest, has been paid. The payments may be made monthly, quarterly, semiannually or annually. The final payment may be less than the specified amount. The total of the payments to be made each year must be at least $75 for each $1,000 applied. |
• |
Option 4 - Life Income - we will pay equal monthly payments during the life of the Option Annuitant. |
• |
Option 5 - Life Income with Guaranteed Period - we will pay equal monthly payments for a stated guaranteed period and thereafter during the life of the Option Annuitant. The guaranteed period may be 5 years, 10 years or 20 years. |
• |
Option 6 - Life Income with Refund Period - we will pay equal monthly payments during the life of the Option Annuitant. If necessary, the payments will continue after the death of the Option Annuitant until the total of all payments made, including a smaller final payment, if required, equals the total amount applied. |
• |
Option 7 - Joint and Survivor Life Income - we will pay equal monthly payments during the joint life of two Option Annuitants and thereafter during the life of the survivor. |
• |
Cash Value Accumulation Test |
• |
Guideline Premium/Cash Value Corridor Test and guideline premium requirement cash value corridor requirement |
• |
The portion of the Net Cash Surrender Value or death benefit proceeds being applied to the installment benefit; |
• |
The investment in the Policy. |
• |
Policy loans in excess of $50,000, partial withdrawals in excess of $10,000, and full surrenders; |
• |
change of death benefit option, rate class; addition/removal of riders; |
• |
changes in Specified Amount of insurance; |
• |
change of beneficiary; |
• |
election of payment option for Policy proceeds; and |
• |
tax withholding elections. |
• |
The maximum total compensation we pay to any broker-dealer firm, inclusive of any bonus incentives, with respect to Policy sales is 120% of the first year Premium and generally 5.6% of all other Premiums paid. |
PORTFOLIO TYPE |
PORTFOLIO AND ADVISER/ SUBADVISER |
CURRENT EXPENSES |
AVERAGE ANNUAL TOTAL RETURNS (as of 12/31/2022) | |||||||
1 YEAR |
5 YEAR |
10 YEAR | ||||||||
Vanguard Variable Insurance Fund | ||||||||||
| i Domestic Large Blend | i Equity Index Portfolio | i 0.14% | - i 18.23% | i 9.27% | i 12.40% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Domestic Large Blend | i Total Stock Market Index Portfolio | i 0.13% | - i 19.59% | i 8.55% | i 11.92% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Intermediate-Term Bond | i Global Bond Index Portfolio | i 0.13% | - i 13.13% | - i 0.12% | i N/A | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Domestic Mid Blend | i Mid-Cap Index Portfolio |
i 0.17% | - i 18.82% | i 7.18% | i 10.95% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Moderate Allocation | i Moderate Allocation Portfolio | i 0.12% | - i 15.93% | i 3.65% | i 6.14% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Intermediate-Term Bond | i Total Bond Market Index Portfolio | i 0.14% | - i 13.21% | - i 0.10% | i 0.92% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i International Large Blend | i Total International Stock Market Index Portfolio | i 0.11% | - i 16.01% | i 1.01% | i N/A | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Conservative Allocation | i Conservative Allocation Portfolio | i 0.13% | - i 14.90% | i 2.52% | i 4.52% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
PORTFOLIO TYPE |
PORTFOLIO AND ADVISER/ SUBADVISER |
CURRENT EXPENSES |
AVERAGE ANNUAL TOTAL RETURNS (as of 12/31/2022) | |||||||
1 YEAR |
5 YEAR |
10 YEAR | ||||||||
| i Moderate Allocation | i Balanced Portfolio | i 0.21% | - i 14.30% | i 5.96% | i 8.41% | |||||
| i Wellington Management Company LLP (Adviser) | ||||||||||
| i Domestic Large Growth | i Capital Growth Portfolio | i 0.34% | - i 15.48% | i 8.57% | i 13.75% | |||||
| i PRIMECAP Management Company (Adviser) | ||||||||||
| i Domestic Large Value | i Diversified Value Portfolio | i 0.29% | - i 11.49% | i 8.08% | i 10.08% | |||||
| i Hotchkis and Wiley Capital Management LLC (Adviser) and Lazard Asset Management LLC (Adviser) | ||||||||||
| i Domestic Large Value | i Equity Income Portfolio | i 0.30% | - i 0.66% | i 8.51% | i 11.58% | |||||
| i Wellington Management Company LLP (Adviser) and The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Domestic Large Growth | i Growth Portfolio | i 0.34% | - i 33.37% | i 8.55% | i 12.49% | |||||
| i Wellington Management Company LLP (Adviser) | ||||||||||
| i High Yield Bond | i High Yield Bond Portfolio | i 0.25% | - i 9.23% | i 2.27% | i 3.64% | |||||
| i Wellington Management Company LLP (Adviser) and The Vanguard Group, Inc. (Adviser) | ||||||||||
| i International Large Growth | i International Portfolio | i 0.41% | - i 30.12% | i 4.45% | i 7.58% | |||||
| i Baillie Gifford Overseas Ltd. (Adviser) and Schroder Investment Management North America Inc. (Adviser) | ||||||||||
| i Real Estate | i Real Estate Index Portfolio | i 0.26% | - i 26.30% | i 3.69% | i 6.36% | |||||
| i The Vanguard Group, Inc. (Adviser) | ||||||||||
| i Domestic Small Growth | i Small Company Growth Portfolio | i 0.29% | - i 25.35% | i 4.53% | i 10.06% | |||||
| i ArrowMark Colorado Holdings LLC (Adviser) and The Vanguard Group, Inc. (Adviser) | ||||||||||
(a) |
The sum of all transfers in a Policy year cannot exceed the greatest of: |
| (i) | 25% of the Traditional Fixed Account Value at the previous policy anniversary, |
| (ii) | $5,000, and |
(iii) |
the total amount transferred from the Traditional Fixed Account in the previous Policy year. |
| (b) | The amount that may be transferred excludes any amount held in the Policy loan accounts. |
| (c) | While the policy is in a Lockout Period, no money may be transferred to the Indexed Fixed Accounts. |
• |
Classic 0% Floor S&P 500 Indexed Account |
• |
High Cap S&P 500 Indexed Account |
• |
Uncapped S&P 500 Indexed Account (Limited by Participation Rate) |
Indexed Fixed Account |
Guaranteed Participation Percentage |
Guaranteed Cap Percentage |
Guaranteed Minimum Interest Rate |
Guaranteed Monthly Asset Charge Percentage | ||||
Classic 0% Floor S&P 500 Indexed Account |
100% |
4.00% |
0.00% |
N/A | ||||
High Cap S&P 500 Indexed Account |
100% |
6.00% |
0.00% |
0.125% (annual rate 1.50%) | ||||
Uncapped S&P 500 Indexed Account (Limited by Participation Rate) |
25% |
N/A |
0.00% |
0.250% (annual rate 3.00%) |
| (1) | is the closing value of the Index on the segment maturity date; |
| (2) | is the closing value of the Index on the segment date; and |
| (3) | one. |
Example 1 |
Example 2 |
|||||||
Index Return |
20.00% | -20.00% | ||||||
Cap Percentage |
10.00% | 10.00% | ||||||
Index Performance |
10.00% | 0.00% | ||||||
Deductions |
$ | 12 | $ | 12 | ||||
Annual Index Credits |
$ | 100 | $ | 0 | ||||
Ending Segment Value |
$ | 1,088 | $ | 988 | ||||
Example 1 |
Example 2 |
|||||||
Index Return |
20.00% | -20.00% | ||||||
Cap Percentage |
14.00% | 14.00% | ||||||
Index Performance |
14.00% | 0.00% | ||||||
Deductions |
$ | 12 | $ | 12 | ||||
Asset Charge |
$ | 15 | $ | 15 | ||||
Annual Index Credits |
$ | 140 | $ | 0 | ||||
Ending Segment Value |
$ | 1,113 | $ | 973 | ||||
Example 1 |
Example 2 |
|||||||
Index Return |
20.00% | -20.00% | ||||||
Participation Percentage |
90% | 90% | ||||||
Index Performance |
18.00% | 0.0% | ||||||
Deductions |
$ | 12 | $ | 12 | ||||
Asset Charge |
$ | 30 | $ | 30 | ||||
Annual Index Credits |
$ | 180 | $ | 0 | ||||
Ending Segment Value |
$ | 1,138 | $ | 958 | ||||
Policy Month |
Withdrawals |
Monthly Deductions |
Monthly Anniversary Segment Value |
Index Credit |
End of Month Segment Value |
|||||||
0 |
10,000.00 | |||||||||||
1 |
9.77 | 9,990.23 | 9,990.23 | |||||||||
2 |
9.77 | 9,980.46 | 9,980.46 | |||||||||
3 |
9.78 | 9,970.68 | 9,970.68 | |||||||||
4 |
9.78 | 9,960.90 | 9,960.90 | |||||||||
5 |
9.78 | 9,951.12 | 9,951.12 | |||||||||
6 |
9.82 | 9,941.30 | 9,941.30 | |||||||||
7 |
500.00 | 9.82 | 9,431.48 | 9,431.48 | ||||||||
8 |
9.82 | 9,421.66 | 9,421.66 | |||||||||
9 |
9.83 | 9,411.83 | 9,411.83 | |||||||||
10 |
9.83 | 9,402.00 | 9,402.00 | |||||||||
11 |
9.83 | 9,392.17 | 9,392.17 | |||||||||
12 |
9.84 | 9,382.33 | 968.63 | 10,350.96 | ||||||||
Guaranteed Participation Percentage |
Guaranteed Cap Percentage |
Guaranteed Segment Minimum Interest Rate |
Guaranteed Monthly Asset Charge Percentage | |||||
Indexed Loan Account |
100% | 3.00% | 1.00% | N/A |
Policy Month |
Loan Amount |
Monthly Anniversary Segment Value |
Interest Credited |
Index Credit |
End of Month Segment Value |
|||||||
1 |
10,000 | 10,000.00 | 8.30 | 10,008.30 | ||||||||
2 |
10,008.30 | 8.30 | 10,016.60 | |||||||||
3 |
10,016.60 | 8.31 | 10,024.91 | |||||||||
4 |
10,024.91 | 8.32 | 10,033.22 | |||||||||
5 |
10,033.22 | 8.32 | 10,041.55 | |||||||||
6 |
10,041.55 | 8.33 | 10,049.88 | |||||||||
7 |
10,049.88 | 8.34 | 10,058.21 | |||||||||
8 |
10,058.21 | 8.34 | 10,066.56 | |||||||||
9 |
10,066.56 | 8.35 | 10,074.91 | |||||||||
10 |
10,074.91 | 8.36 | 10,083.26 | |||||||||
11 |
10,083.26 | 8.36 | 10,091.63 | |||||||||
12 |
10,091.63 | 8.37 | 853.89 | 10,953.89 | ||||||||
Policy Month |
Loan Amount |
Loan Repayment |
Monthly Anniversary Segment Value |
Interest Credited |
Index Credit |
End of Month Segment Value | ||||||
1 |
10,000 | 10,000.00 | 8.30 | 10,008.30 | ||||||||
2 |
10,008.30 | 8.30 | 10,016.60 | |||||||||
3 |
10,016.60 | 8.31 | 10,024.91 | |||||||||
4 |
10,024.91 | 8.32 | 10,033.22 | |||||||||
5 |
10,033.22 | 8.32 | 10,041.55 | |||||||||
6 |
10,041.55 | 8.33 | 10,049.88 | |||||||||
7 |
5,000 | 5,049.88 | 4.19 | 5,054.06 | ||||||||
8 |
5,054.06 | 4.19 | 5,058.26 | |||||||||
9 |
5,058.26 | 4.20 | 5,062.45 | |||||||||
10 |
5,062.45 | 4.20 | 5,066.65 | |||||||||
11 |
5,066.65 | 4.20 | 5,070.86 | |||||||||
12 |
5,070.86 | 4.21 | 640.95 | 5,716.01 |
STATE |
LOCATION IN PROSPECTUS |
STATE VARIATION | ||
| FL | See “Policy Loans.” | There is no minimum policy loan amount. | ||
| FL | See “Do I Have the Right to Cancel the Policy?” | If your Policy is not replacing an existing policy, you have the right to cancel your Policy within 14 days after you receive it. If your Policy is a replacement, you have the right to cancel your Policy within 30 days after you receive it. | ||
| FL | See “What Are the Supplemental Riders and Benefits That Are Available?” | The Early Surrender Value Rider and Cash Value Enhancement Rider are not available in Florida | ||
| FL | See “Incontestability” in the Statement of Additional Information | For Incontestability, the SAI language has been revised as follows: After a Policy has been in force during the insured’s lifetime for two years from the original Policy date, we may not contest the Policy. However, if there has been a Policy change or reinstatement for which we required evidence of insurability, we may contest that Policy change or reinstatement for two years with respect to information provided at that time, during the lifetime of the insured, from the effective date of the Policy change or reinstatement. | ||
| SC | See “Do I Have the Right to Cancel the Policy?” | If you cancel your Policy during the free look period, you will receive a refund of any premiums you have paid. During the free look period, your policy value will be allocated to the Short-Term Fixed Account. At the end of the period, your policy value will be transferred to the Variable Investment Options and Fixed Account Options you have chosen. | ||
| SC | See “Incontestability” in the Statement of Additional Information | For Incontestability, the SAI language has been revised as follows: After a Policy has been in force during the insured’s lifetime for two years from the original Policy date, we may not contest the Policy. However, if there has been a Policy change or reinstatement for which we required evidence of insurability, we may contest that Policy change or reinstatement for two |
STATE |
LOCATION IN PROSPECTUS |
STATE VARIATION | ||
years with respect to information provided at that time, during the lifetime of the insured, from the effective date of the Policy change or reinstatement. If We initiate a mutual rescission or institute proceedings to vacate the Policy or any rider or supplemental benefits, We must commence such action within the time specified above. | ||||
| SC | See “Suicide” in the Statement of Additional Information | The suicide exclusion does not restart upon reinstatement. | ||
| SD | See “Do I Have the Right to Cancel the Policy?” | If you cancel your Policy during the free look period, you will receive a refund of any premiums you have paid. During the free look period, your policy value will be allocated to the Short-Term Fixed Account. At the end of the period, your policy value will be transferred to the Variable Investment Options and Fixed Account Options you have chosen. | ||
| SD | See “What Are the Supplemental Riders and Benefits That Are Available?” | For the Accidental Death Benefit Rider, the prospectus language has been revised as follows: In the table under ‘Brief Description of Restrictions/Limitations’ Certain exclusions apply, including death resulting directly or indirectly from disease, infection, crimes, suicide, etc. Under ‘Accidental Death Benefit Rider’ The Accidental Death Benefit will not be payable if the death of the insured is the result, directly or indirectly, of certain types of excluded accidents, including: • disease or infirmity of body, or medical or surgical treatment for such disease or infirmity; • an infection not occurring as a direct result or consequence of the accidental
bodily injury; • suicide, or intentionally self-inflicted injury, of the insured; • the commission by the insured of a felony; • travel or flight in or descent from an aircraft of any kind while the insured is a pilot, officer, or member of the crew of the aircraft; • war or act of war, or other special hazards incident to service in the military, naval or air forces of any country. |
STATE |
LOCATION IN PROSPECTUS |
STATE VARIATION | ||
| SD | See “What Are the Supplemental Riders and Benefits That Are Available?” | For the Disability Waiver of Monthly Deductions Rider, the prospectus language has been revised as follows: Monthly Deductions will not be waived if the total disability of the Insured results from: (a) any attempt at suicide, or intentionally self-inflicted injury, while sane or insane; (b) war or an act of war, while the Insured is in the military, naval or air force of any country, group of countries or international organization; (c) active participation in a riot, insurrection or terrorist activity; (d) committing or attempting to commit a felony; (e) voluntary intake or use by any means of poison, gas or fumes, unless a direct result of an occupational accident; or (f)
participation in an illegal occupation or activity. | ||
| SD | See “What Are the Supplemental Riders and Benefits That Are Available?” | For the Disability Completion Benefit Rider (AKA Disability Waiver of Stipulated Premium Rider) , the prospectus language has been revised as follows: Monthly Deductions will not be waived and Stipulated Premium will not be deposited if the total disability of the Insured results from: (a) any attempt at suicide, or intentionally self-inflicted injury, while sane or insane; (b) war or an act of war while the Insured is in the military, naval or air force of any country, group of countries or international organization; (c) active participation in a riot, insurrection or terrorist activity; (d) committing or attempting to commit a felony; (e) voluntary intake or use by any means
of poison, gas or fumes, unless a direct result of an occupational accident; or (f) participation in an illegal occupation or activity. |
STATEMENT OF ADDITIONAL INFORMATION
FOR
ACCUMULATION VUL
a flexible premium adjustable variable life insurance policy with index-linked options issued by
THE PENN INSURANCE AND ANNUITY COMPANY
and funded through
PIA VARIABLE LIFE ACCOUNT I
of
The Penn Insurance and Annuity Company
PO Box 178, Philadelphia, Pennsylvania 19105
1-800-523-0650
This Statement of Additional Information (the “SAI”) is not a prospectus. It should be read in conjunction with our Accumulation VUL prospectus dated December 31, 2023. A copy of the prospectus for the Policy is available, without charge, by writing to The Penn Insurance and Annuity Company (“PIA” or the “Company”), Customer Service Group – C3P, PO Box 178, Philadelphia, Pennsylvania, 19105 or, you may call, toll free, 1-800-523-0650, or access our website at www.pennmutual.com.
The financial statements of the Company and the PIA Variable Life Account I are incorporated by reference to the financial statements included in the Form N-VPFS filed on April 25, 2023.
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THE PENN INSURANCE AND ANNUITY COMPANY
The Penn Insurance and Annuity Company is a Delaware stock life insurance company. We are a wholly-owned subsidiary of The Penn Mutual Life Insurance Company (“Penn Mutual”). We were chartered in 1982 and have been continuously engaged in the life insurance business since that date. We are licensed to sell insurance in 49 states and the District of Columbia. Our corporate headquarters are located at 600 Dresher Road, Horsham, Pennsylvania, 19044, a suburb of Philadelphia. Our mailing address is The Penn Insurance and Annuity Company, PO Box 178, Philadelphia, Pennsylvania, 19105.
PIA Variable Life Account I
We established PIA Variable Life Account I (the “Separate Account”) as a separate investment account under Delaware law on March 10, 2021. The Separate Account is registered with the Securities and Exchange Commission (the “SEC”) as a unit investment trust under the Investment Company Act of 1940 and qualifies as a “separate account” within the meaning of the federal securities laws.
ADDITIONAL INFORMATION
Assignment
You may assign the Policy while it is in force during the life of the Insured. Your rights, and the rights of any beneficiary, will be subject to the rights of an assignee under the terms of an assignment. We will not be bound by any assignment until you provide a signed form, that we have either provided or find acceptable, and the form has been filed at the home office. Unless you specify otherwise, the assignment will take effect as of the date you signed the form, subject to any action we have taken prior to the time that the assignment is received at the home office. We are not responsible for the effect or the validity of any assignment.
Misstatement of Age or Sex
If the insured’s age or sex (if the policy is issued on a sex-distinct basis) has been misstated, we will adjust the proceeds payable under the Policy based on what the last monthly charges would have purchased at the correct age or sex (if the policy is issued on a sex-distinct basis).
Incontestability
After a Policy has been in force during the insured’s lifetime for two years from the original Policy date, we may not contest the Policy, except in the case of fraud. However, if there has been a Policy change or reinstatement for which we required evidence of insurability, we may contest that Policy change or reinstatement for two years with respect to information provided at that time, during the lifetime of the insured, from the effective date of the Policy change or reinstatement.
Suicide
If the insured, whether sane or insane, dies by suicide, within two years of the original Policy date or any shorter period as may be required by applicable law in the state where the Policy is delivered or issued for delivery, our liability will be limited to an amount equal to the premiums paid for the Policy less any Policy loan partial withdrawals. If there has been an increase in Specified Amount for which we required evidence of insurability, and if the insured dies by suicide within two years from the effective date of the increase or any shorter period as may be required by applicable law in the state where the Policy is delivered or issued for delivery, our liability with respect to the increase will be limited to an amount equal to the portion of the monthly charges associated with that increase. If there has been a reinstatement, and if the insured dies by suicide, within two years of the reinstatement or any shorter period as may be required by applicable law in the state where the Policy is delivered or issued for delivery, our liability will be limited to an amount equal to the premiums paid less any Policy loan partial withdrawals since the date of reinstatement.
2
Non-Principal Risks
In addition to the section of the prospectus on the principal risks of investing in the Policy, risks are disclosed separately in each of the appropriate sections of the prospectus.
SALE OF THE POLICY
Hornor, Townsend & Kent, LLC (“HTK”), a wholly-owned subsidiary of Penn Mutual, acts as a principal underwriter of the Policies on a continuous basis. HTK, located at 600 Dresher Road, Horsham, Pennsylvania 19044, was organized as a Pennsylvania corporation on March 13, 1969. The offering is on a continuous basis. HTK also acts as principal underwriter for (1) Penn Mutual Variable Annuity Account III, a separate account established by Penn Mutual; for (2) Penn Mutual Variable Life Account I, also a separate account established by Penn Mutual; and for (3) PIA Variable Annuity Account I, a separate account established by the Company. HTK is a registered broker-dealer under the Securities Exchange Act of 1934 and a member of the Financial Industry Regulatory Authority.
The Accumulation VUL Policy is newly offered and therefore HTK did not receive any compensation for its services related to the Policy during the last three fiscal years.
PERFORMANCE INFORMATION
We may provide the investment performance for the mutual fund portfolios (each, a “Portfolio”) that are offered as investment options under the Policy. The performance information for the Portfolios reflects fees and expenses of the Portfolios, but does not reflect the other fees and expenses that your Policy may charge. Expenses would be higher and performance would be lower if these other charges were included.
EXPERTS
The financial statements of the Company (i) as of December 31, 2022 and for each of the two years in the period ended December 31, 2022 and (ii) as of December 31, 2020 and for each of the two years in the period ended December 31, 2020; and the financial statements of the Separate Account as of December 31, 2022 and for the periods indicated, included in this SAI constituting part of this Registration Statement, have been so included in reliance on the reports of PricewaterhouseCoopers LLP, an independent registered public accounting firm, given on the authority of said firm as experts in auditing and accounting. PricewaterhouseCoopers LLP’s principal business address is at 2001 Market Street, Suite 1800, Philadelphia, Pennsylvania 19103.
FINANCIAL STATEMENTS
The financial statements of the Company and the Separate Account are incorporated by reference to the financial statements included in the Form N-VPFS filed on April 25, 2023. The financial statements of the Company should be distinguished from any financial statements of the Separate Account and should be considered only as bearing upon the Company’s ability to meet its obligations under the Policy.
3
Part C
Other Information
Item 30: Exhibits
Item 31: Directors and Officers of the Depositor
The following table sets forth the names of the executive officers of The Penn Insurance and Annuity Company (the “Company” or the “Depositor”) and the officers and trustees of the Company who are engaged directly or indirectly in activities relating to the PIA Variable Life Account I (the “Separate Account” or the “Registrant”) or the variable annuity and variable life policies offered by the Separate Account. Unless otherwise noted, the principal business address of each of the officers is The Penn Mutual Life Insurance Company, 600 Dresher Road, Horsham, Pennsylvania 19044.
| Name and Principal Business Address |
Position and Offices with Depositor | |
| David M. O’Malley | Director and Chief Executive Officer | |
| Thomas H. Harris | Director and President | |
| Rick Klenk | Director and Chief Financial Officer | |
| Karthick Dalawai | Director and Chief Risk Officer | |
| Victoria M. Robinson | Director, Secretary and Chief Ethics and Compliance Officer | |
| David M. Raszeja | Director (Comptroller) | |
| Ann-Marie Mason | Chief Legal Officer | |
Item 32: Persons Controlled By or Under Common Control with the Depositor or Registrant
The Company established the Separate Account as a separate investment account under Delaware law on March 10, 2021. The Company is a wholly-owned subsidiary of The Penn Mutual Life Insurance Company (“Penn Mutual”).
The Penn Mutual Life Insurance Company’s Wholly-Owned Subsidiaries as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| The Penn Insurance and Annuity Company | Life Insurance and Annuities | Delaware | ||
| Penn Mutual Asset Management, LLC | Investment Adviser | Pennsylvania | ||
| Penn Series Funds, Inc. | Investment Company | Maryland | ||
| Penn Mutual Payroll Administration, LLC | Payroll | Pennsylvania | ||
| Independence Square Properties, LLC | Holding Company | Delaware | ||
| Hornor, Townsend & Kent, LLC | Registered Broker-Dealer and Investment Adviser | Pennsylvania | ||
| Vantis Life Insurance Company | Life Insurance | Connecticut | ||
| The Penn Insurance and Annuity Company of New York (a NY Corporation) | Life Insurance | New York | ||
| ILS Holdings, LLC | Holding Company | Delaware | ||
| 1847 Insurance Captive, LLC | Captive Insurance | Delaware | ||
The Penn Insurance and Annuity Company Wholly-Owned Subsidiaries as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| PIA Reinsurance Company of Delaware I | Reinsurance | Delaware | ||
| Dresher Run I, LLC | Holding Company | Delaware | ||
Vantis Life Insurance Company Wholly-Owned Subsidiary as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| The Savings Bank Life Insurance Company Agency, LLC | Life Insurance | Connecticut |
Independence Square Properties, LLC Wholly-Owned Subsidiaries as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| Janney Montgomery Scott LLC | Registered Broker-Dealer and Investment Adviser | Delaware |
Janney Montgomery Scott LLC Wholly-Owned Subsidiaries as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| JMS Resources, Inc. | Investments | Pennsylvania | ||
| Janney Capital Management, LLC | Investments | Delaware | ||
JMS Resources, Inc. Wholly-Owned Subsidiary as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| Janney Private Equity Company, Inc. | Investments | Delaware |
Hornor, Townsend & Kent, LLC Wholly-Owned Subsidiary as of December 31, 2022
| Corporation |
Principal Business |
State of Incorporation | ||
| HTK Insurance Agency, LLC | Insurance Agents or Brokers | Pennsylvania |
All subsidiaries listed above are included in Penn Mutual’s consolidated financial statements.
Item 33. Indemnification
Article IV of the By-Laws of the Company provides that, in accordance with the provisions of the Section, the Company shall indemnify directors and officers against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by such directors or officers in connection with such action, suit or proceeding to the extent that such person is not otherwise indemnified and the power to do so has been or may be granted by statute.
Pennsylvania law (15 Pa. C.S.A. §§ 1741-1750) authorizes Pennsylvania corporations to provide indemnification to directors, officers and other persons. Penn Mutual owns a directors and officers liability insurance policy covering liabilities that trustees and officers of Penn Mutual and its subsidiaries may incur in acting as trustees and officers. The Company is a wholly- owned subsidiary of Penn Mutual.
Insofar as indemnification for liability arising under the Securities Act of 1933 (the “1933 Act”) may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the 1933 Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue.
Item 34. Principal Underwriters
Hornor, Townsend & Kent, LLC serves as principal underwriter of the securities of the Registrant. Hornor, Townsend & Kent, LLC also serves as distributor of variable annuity and variable life policies issued through Penn Mutual Variable Annuity Account III and Penn Mutual Variable Life Account I.
| Hornor, Townsend & Kent, LLC — Board of Managers and Officers* | ||
| David M. O’Malley | Manager and Chairman of the Board | |
| Aaron J. Gordon | Manager President | |
| Thomas H. Harris | Manager | |
| Karthick Dalawai | Manager | |
| Victoria M. Robinson | Manager and Chief Compliance Officer | |
| Keith G. Huckerby | Manager | |
| Cristina M. Leder | Treasurer and Financial Operations Principal | |
| Hornor, Townsend & Kent, LLC — Board of Managers and Officers* | ||
| Ann-Marie Mason | Chief Legal Officer and Corporate Secretary | |
| Tiffany MacLean | Anti-Money Laundering Officer | |
| Jessica F. Swarr | Assistant Vice President Corporate Tax | |
| * | The principal business address of the managers and officers is The Penn Mutual Life Insurance Company, 600 Dresher Road, Horsham, Pennsylvania 19044. |
Commissions and Other Compensation Received by Each Principal Underwriter during the last Fiscal Year*:
| Name of Principal Underwriter |
Net Underwriting Discounts and Commissions |
Compensation on Redemption |
Brokerage Commissions |
Other Compensation |
||||||||||||
| Hornor, Townsend & Kent, LLC |
$ | 0 | $ | 0 | $ | 0 | $ | 0 | ||||||||
| * | Sales had not yet commenced in the last Fiscal Year. |
Item 35. Location of Accounts and Records
The name and address of the person who maintains physical possession of each account, book or other documents required by Section 31(a) of the Investment Company Act of 1940, as amended, is provided in the Registrant’s most recent report on Form N-CEN.
Item 36. Management Services
Not applicable.
Item 37. Fee Representation
The Company represents that the fees and charges deducted under the Accumulation Variable Universal Life Insurance Policy, in the aggregate, are reasonable in relation to the services rendered, the expenses expected to be incurred, and the risks assumed by the Company.
Signatures
Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the city of Horsham Township, and Commonwealth of Pennsylvania, on December 18, 2023.
| PIA VARIABLE LIFE ACCOUNT I (Registrant) | ||
| By: | ||
| David M. O’Malley | ||
| Chief Executive Officer | ||
| THE PENN INSURANCE AND ANNUITY COMPANY (Depositor) | ||
| By: | ||
| David M. O’Malley | ||
| Chief Executive Officer | ||
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed by the following persons in the capacities and on the dates indicated.
| Signature |
Title |
Date | ||
| Chairman of the Board of Directors and Chief Executive Officer | December 18, 2023 | |||
| David M. O’Malley | ||||
| *David M. Raszeja |
Director (Comptroller) | December 18, 2023 | ||
| David M. Raszeja | ||||
| *Rick Klenk |
Director and Chief Financial Officer | December 18, 2023 | ||
| Rick Klenk | ||||
| *Thomas H. Harris |
Director and President | December 18, 2023 | ||
| Thomas H. Harris | ||||
| *Karthick Dalawai |
Director | December 18, 2023 | ||
| Karthick Dalawai | ||||
| *Victoria M. Robinson |
Director | December 18, 2023 | ||
| Victoria M. Robinson | ||||
| *By: /s/ David M. O’Malley |
||||
| David M. O’Malley, attorney-in-fact | ||||
| This ‘N-6/A’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 12/31/23 | ||||
| Filed on: | 12/21/23 | |||
| 12/18/23 | ||||
| For Period end: | 12/31/22 | 24F-2NT, N-6/A, N-CEN, N-VPFS | ||
| 3/10/21 | ||||
| 12/31/20 | ||||
| 8/17/06 | ||||
| 7/30/02 | ||||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/25/24 Pia Variable Life Account I 485BPOS 5/01/24 11:4.6M Donnelley … Solutions/FA 4/25/24 Pia Variable Life Account I 485BPOS 5/01/24 11:3.4M Donnelley … Solutions/FA 4/25/24 Pia Variable Life Account I 485BPOS 5/01/24 11:3.4M Donnelley … Solutions/FA |
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 12/01/23 Pia Variable Life Account I N-6/A 3:1.3M Donnelley … Solutions/FA 8/04/23 Pia Variable Life Account I N-6 3:1.2M Donnelley … Solutions/FA 4/25/23 Pia Variable Life Account I N-VPFS 12/31/22 1:2.9M Donnelley … Solutions/FA 2/15/23 Pia Variable Life Account I N-6 3:1.3M Donnelley … Solutions/FA 7/02/21 Penn Insurance & Annuity Co. N-6/A 16:8.7M Donnelley … Solutions/FA 3/12/21 Pia Variable Life Account I N-6 7:1.8M Donnelley … Solutions/FA |