1. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities The Complete Value of Life Insurance The information contained within this educational program is not to be considered specific financial, tax or legal advice. Depending on your individual situation, products and strategies presented may not be appropriate. Not a guarantee of future performance of success. Life insurance and annuity contracts are subject to certain terms, conditions and costs to maintain coverage. Always consult a qualified advisor regarding your individual circumstances.

2. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities 3. Life insurance is death protection only. Myth Reality choose one 4. Yes, the reality is Along with the death benefit protection, permanent life insurance has living benefits. Plus it builds cash value for emergencies, college funding, retirement, etc. All guarantees are based on the claims paying ability of the issuer. Policy loans and withdrawals will reduce the policy cash value and death benefit. 5. No, the reality is Along with the death benefit protection, permanent life insurance has living benefits. Plus it builds cash value for emergencies, college funding, retirement, etc. All guarantees are based on the claims paying ability of the issuer. Policy loans and withdrawals will reduce the policy cash value and death benefit. 6. You should buy life insurance only after you have started a family. Myth Reality choose one 7. Yes, the reality is Buying early helps lock in better rates when you are younger and healthier. The earlier you begin, your policy will have greater cash value potential. 8. No, the reality is Buying early helps lock in better rates when you are younger and healthier. The earlier you begin, your policy will have greater cash value potential. 9. Buy it once and you are all set Myth Reality choose one 10. Yes, the reality is As life evolves, so does your personal and familys financial needs. Make sure your life insurance grows with you. 11. No, the reality is As life evolves, so does your personal and familys financial needs. Make sure your life insurance grows with you. 12. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities 13. are considered underinsured of U.S. households or 35 million LIMRA 2010 Study 14. households at risk for retirement shortfalls National Retirement Risk Index, Center for Retirement Research at Boston College 15. The Retirement Breach in Defined Contribution Plans, HelloWallet, 2013 took money out of their 401(k) before retirement 16. of Americans lack emergency savings Bankrates June 2011 Financial Security Index 17. above the inflation rate over the past decade. College education costs have increased 5.6% per year The College Board, Trends in College Pricing 2010 18. The cost of healthcare has increased United States Department of Health and Human Services, National Health Expenditures, 2013 over the past 20 years 19. And much more A comfortable retirement The start-up of a new business A college education Many people are unaware of how permanent life insurance can help throughout their life. It can be used to help people achieve lifetime goals or with unexpected emergencies. 20. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities 21. Living benefits build cash value to help achieve lifetime goals: College education Starting a business Retirement Emergency funds Permanent life insurance provides protection and possibilities through death benefits and living benefits All guarantees based on the claims paying ability of the issuer. Policy loans and withdrawals will reduce the policy cash value and death benefit. 22. Complete value of permanent life Insurance Guaranteed protection Builds cash value Access cash value through loan or withdrawals Creditor protected* Tax advantages *May vary by state 23. Life insurance is a dynamic, multi-purposed means of: Providing the protection of a guaranteed safety net for your loved ones. Unlocking lifes possibilities and doing more throughout your life. Making an enduring impact that transcends generations. 24. A sound financial plan puts life insurance first and center Choose a solution to learn more Strengthens other financial products Helps fill in gaps with other financial solutions if something happens to you Provides an alternative and flexible option to access cash 25. Annuities Supplement retirement income with cash value from life insurance to cover shortfalls or delay withdrawals. Strengthens annuities by providing flexibility on distribution options. Strengthen all of your financial solutions. 26. Investments Guaranteed protection and cash value components of life insurance can help allow one to take on more risk within ones investment portfolio. Strengthens investments through the added safety net of guaranteed protection and cash value afforded through a life insurance policy Strengthen all of your financial solutions. Investing involves risk, including loss of value of ones investment. 27. Long-Term Care Access the cash value or add a chronic illness rider to life insurance to help contain costs and ensure independence. Strengthens long-term care with added safety net for asset protection. Strengthen all of your financial solutions. The availability of access to benefit guarantees or values is not intended to provide long-term care insurance. Life insurance benefit amounts are unrelated to the amount of charges incurred for the cost of care 28. Other Solutions Access life insurance policy for emergencies, cash shortages or to supplement targeted goals, such as retirement income. Strengthens your 401(k) or 529 plans which are not easily accessible. Strengthen all of your financial solutions. 29. Disability Insurance Access the cash value or add a disability waiver to life insurance to cover premiums and maintain protection. Strengthens disability benefits to cover policy premiums so that disability payments can be used to meet other needs. Strengthen all of your financial solutions. 30. Life Insurance First and Center: Strengthens a financial plan Optimizes other financial products Enhances a solutions intended purpose Permanent life insurance provides both death benefit protection and possibilities through cash value. 31. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities 32. Term Life and Permanent Life Term a time-based solution similar to renting Permanent a lifetime solution similar to owning 33. Term Life Permanent Life Main Purpose Coverage Duration Builds Cash Value Access to Cash Value Cost Short-term Protection needs Long-term protection plus cash value accumulation to meet financial needs and goals Limited time generally 5 to 20 years. Work coverage typically ends when employment does Lifetime coverage as long as premiums are paid Not Applicable Accumulates cash value on a tax-deferred basis Not Applicable Yes* Lower in early ages, increases with age, policy length and health changes Initially higher than term, but becomes more cost effective than term as you age *Accessible through loans and withdrawals, certain limitations may apply to loans or withdrawals. Policy loans or withdrawals will reduce the benefit and cash values and may be taxable . 34. Combine Term with Permanent Insurance for Protection and Possibilities Supplement permanent life insurance with term Maximize protection for a specific time period Consider a term policy with conversion benefits Attain additional permanent insurance as needed 35. Consider permanent life insurance based on your risk tolerance and growth potential Risk Tolerance HighLow Growth Potential Market-BasedGuaranteed Whole Life Universal Life (UL) Indexed Universal Life (IUL) Variable Universal Life (VUL) Policy guarantees are subject to the claims-paying ability of the insurer, and do not apply to the performance of variable life insurance underlying investment options. 36. Whole Life Keep it Safe Guaranteed death benefit and cash value accumulation Maximum guarantees and predictable payments Long-term, low risk tolerance Risk Tolerance HighLow Growth Potential Market-BasedGuaranteed 37. Growth Potential Market-BasedGuaranteed Universal Life (UL) Provide Flexibility Lower cost potential with flexible payments, yet adjustable Protection guarantees with cash value linked to companys current interest rates* Low to medium risk tolerance Risk Tolerance HighLow *Stated interest rates are subject to change. 38. Indexed Universal Life (IUL) Add a Boost Equal desire for protection and cash value accumulation Upside potential with cash value linked to market index* Strong downside protection Medium risk tolerance Growth Potential Market-BasedGuaranteed Risk Tolerance HighLow *Subject to participation and cap rates, including other limitations as defined within the contract. One cannot invest directly in an index. 39. Risk Tolerance HighLow Growth Potential Market-BasedGuaranteed Variable Universal Life (VUL) Max My Upside Strong desire for cash value accumulation Upside potential with cash value linked to investment account performance* Limited downside protection Higher risk tolerance *Variable investments are subject to market risk and may lose value. 40. Tips to Get Started in Life Starting with permanent and supplementing with term The younger and healthier you are, the better the rates and cash value opportunity Converting term life to permanent life over time Reviewing coverage and needs as life changes Staying on track with annual reviews 41. Why Life InsuranceMyths A new way of looking at life First and Center approach Life Solutions Your Possibilities 42. Mary Smith: She chose Whole Life to keep it safe Profile Name: Mary Smith Age: 45 Occupation: Attorney Spouse: Michael, 41 Children: Lucas, 8 and Cindy, 6 Bought Flexible Choice Whole Life at age 30 with $500,000 death benefit $6,750 annual premium Guaranteed Death Benefit Guaranteed Cash Value Age 45 Guaranteed Cash Value $109,000 Possible emergency fund Guaranteed Death Benefit $693,000 Age 50 Guaranteed Cash Value $161,000 Or for starting a business Guaranteed Death Benefit $739,000 Age 55 Guaranteed Cash Value $219,000 Or funding college Guaranteed Death Benefit $777,000 Age 60 Guaranteed Cash Value $283,000 Or for a vacation home Guaranteed Death Benefit $810,000 Age 65 Guaranteed Cash Value $354,000 Or supplementing retirement Guaranteed Death Benefit $838,000 Permanent Life Insurance Other Assets Investments Real Estate 401(k) Savings Age 30 The example above is for hypothetical illustrative purposes only and are not guarantees of future performance or success. Actual results will vary. Guaranteed cash value assumptions are prior to making any loans or withdrawals. Policy loans and withdrawals may reduce the death benefit. The Penn Mutual Life Insurance Company offers Flexible Choice Whole Life, which is shown above as Preferred Plus rate class; Premium with base and Supplemental Paid-Up Additions Rider. Products or features may not be available in all states. Policy form numbers TL-08(S) and TL-08(U). Policy guarantees are based on the claims-paying ability of the insurer. 43. Janet Hall: She got started early in life and now has an advantage Profile Name: Janet Hall Age: 40 Occupation: Nurse Practitioner Started early in her career, buying a whole life policy at age 25 $300,000 guaranteed death benefit $2,106 annual premium payment Guaranteed Death Benefit Guaranteed Cash Value Permanent Life Insurance The example above is for hypothetical illustrative purposes only and are not guarantees of future performance or success. Actual results will vary. The Penn Mutual Life Insurance Company offers Flexible Choice Whole Life, which is shown above as Preferred Plus rate class; Premium with base and Supplemental Paid-Up Additions Rider. Products or features may not be available in all states. Policy form numbers TL-08(S) and TL-08(U). Policy guarantees are based on the claims-paying ability of the insurer. Guaranteed values assumes no outstanding loans or withdrawals. Profile Name: Lisa Jones Age: 40 Occupation: Account Manager Bought whole life policy at age 40 $161,500 guaranteed death benefit $2,106 annual premium payment Guaranteed Death Benefit Guaranteed Cash Value $300,000 $218,100 Age 85 $120,600 Age 65 $43,500 Age 45 Age 25 $161,500 $112,245 Age 85 Permanent Life Insurance $53,457 Age 65 $5,814 Age 45 Age 25 44. Ken Kline: Had term coverage through employer Profile Name: Ken Kline Age: 41 Occupation: Regional Sales Manager Spouse: Carrie Children: Emily, 5 and Caiden,2 Term insurance policy of two times his salary provided by his employer Recently downsized and currently has no insurance coverage Age 45 Term Life Insurance Age 25 The example above is for hypothetical illustrative purposes only and are not guarantees of future performance or success. Actual results will vary. Age 40 Age 30 Age 35 Death Benefit $185,000 Cash Value $0 Ken didnt realize that his term poliy ended with his employment. 45. Investors should consider the investment objectives, risks, charges, and expenses of a variable insurance product carefully before investing. Please carefully read the prospectuses for the relevant variable insurance product and its underlying investment options, which contain this and other information about the product. You can obtain a prospectus from a Penn Mutual financial professional. 2013 The Penn Mutual Life Insurance Company, Philadelphia, PA 19172 www.pennmutual.com A3CD-0228-02E3