HORSHAM, Pa.--(BUSINESS WIRE)--To meet the growing demand for life insurance products that offer the potential for additional cash value accumulation without the risks of variable universal life insurance, The Penn Mutual Life Insurance Company and its wholly owned subsidiary, The Penn Insurance & Annuity Company, have added Accumulation Builder Indexed Universal Life (IUL) to their competitive line of life insurance and annuity products.

Indexed Universal Life combines permanent universal life insurance coverage with the ability to build cash value through both a fixed and "indexed" account. It is best suited for those who want to accumulate cash value with virtually no downside risk and can heavily fund the policy in order to take full advantage of its growth potential.

Over the last few years, IUL sales have experienced significant growth - almost doubling in volume from 2005 to 2006 - and Penn Mutual is pleased to enter the expanding IUL marketplace with its exceptional new product.

"Accumulation Builder is ideal for baby boomers whose variable universal life insurance policies have suffered in the market or whose traditional universal life insurance policies have lagged due to low interest rates," said Frank Howell, MSM, CLU, ChFC, senior vice president of the company's Sales Support Operations.

With Accumulation Builder IUL, clients can allocate their premiums to both a fixed account and an indexed account. The fixed account offers a competitive interest rate that is declared monthly, but is guaranteed to be at least 2 percent a year. All guarantees are based on the claims-paying ability of the issuer. The indexed account offers the potential for greater cash value accumulation, since it credits interest based on the performance of the S&P 500 Index, excluding dividends.

The indexed account employs a "one-year point-to-point" crediting method, where interest is calculated based on the positive performance of the market index between two points in time, up to a cap. If the S&P 500 remains flat or posts a loss for the annual period, the indexed account is also protected by a guaranteed minimum interest rate of 2 percent.

"We use the S&P 500 Index because it is one of today's best-known market indicators," added Howell. "The return potential of the indexed account, combined with its competitive cap and the cash value protection provided by the 2 percent floor, gives the policy tremendous opportunity for cash value accumulation."

The Penn Mutual Life Insurance Company is the nation's second oldest mutual life insurer. Founded in 1847, the company provides life insurance and annuity products through a national network of professional agents and financial advisors who help clients meet their financial needs with confidence. The Penn Insurance & Annuity Company is Penn Mutual's wholly owned subsidiary. Penn Mutual supports its field representatives with brokerage services through Hornor, Townsend & Kent, Inc., also a wholly owned subsidiary. Visit Penn Mutual on the Internet at http://www.pennmutual.com.

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Source: The Penn Mutual Life Insurance Company