How to Do a Penn Mutual Application
Step-by-Step
First, you will request the illustration. If you are using Penn Mutual, you can request the illustration at our illustration request page.
That will create an email to illustration designers at Penn Mutual who will design it a very specific way. They will email it directly to you.
Make sure when you input the client’s information in the form, you use the client’s email address. If you use yours, it will save the client’s information over your information in the automation system, which could complicate future deals if you consistently use your email address. We will not email your clients except in very limited circumstances as part of the automation process (e.g., when you submit their information for a rollover referral, it emails them an invitation to set up an appointment with the law firm).
Is It a 1035 Exchange?
Remember, there may be tax implications of doing a 1035 exchange. Use the calculator to verify. Here’s what you need to know:
To avoid taxation on a 1035 Exchange, you either have to keep the loan (transfer it to the new insurance contract) or pay it off (which can be done either before or after the transfer)
If you eliminate the loan on a 1035 exchange, you have to report as taxable income the lesser of (1) the loan amount, or (2) the cash value growth.
Penn Mutual ACE Applications
*Note that Penn Mutual changed some of the questions in the application that will change how they are submitted for OPM cases. When they ask if the client ever plans on using the policy as collateral, or financing premium, you will mark “yes.” Then you will send a cover letter to Penn Mutual explaining what you are doing. A template for the cover letter can be downloaded here. Put it on your letterhead and send it to Penn Mutual.
To submit the application for Penn Mutual, you will go to pennmutual.com and click on “log in” in the upper right corner.
ACE phone number: 866-223-7651
Then select “Log into Producers Place.”
One you’ve logged in, click on the “ACE e-APP” Botton on the right.
Once you’re in ACE, click on “Create Formal.”
From here, the application process should be fairly self-explanatory. Penn Mutual has produced this video to give you an idea of how the process works:
When it asks you for the agent breakdown, you need to make sure you add Zach at 15% each. Your portion is 85%:
It will ask you if you know the other agents’ Office Code and Contract Information. Mark “Yes.”
GOLDEN: Agent 85%, Zach 15% (20% goes from Agent to Zach if Agent gets Zach involved to make the sale)
OPM: Agent 60%, Zach 15%, Kirk 25% (20% goes from Agent to Zach if Agent gets Zach involved to make the sale)
Zach’s Penn Mutual agent code is Z1Z-1402D
Kirk’s Penn Mutual agent code is N7N-2093E
Once you have finished filling out what you can with the client, they will need to get an invitation to the app so they can fill out the life and health on their own. To do that, hover over the “Invite People to App” button on the upper right and then click on the client’s name (or if there are multiple people, like if the insured and owners are different people, click on “invite all”). That will send them an invitation to set up an account with Penn Mutual and fill out their portion.
Here is an overview of what the client will see/do when you send that invitation (must be logged in to Penn Mutual):
From here, you will want to check Insight every day. That’s where there will be messages from the underwriter if anything else is needed. To get to insight, you will login to Pennmutual.com the same way you did before. But instead of clicking on “ACE e-App,” you will click on “insight.”
Make sure you stay on top of your cases.
Once you are ready to attach the illustration to the app (meaning, you have the illustration where the client is happy with it), you will send the application code to the Penn Mutual employee who sent you the illustration, which will usually by Blaise Jacobsen (Jacobsen.blaise@pennmutual.com). Just ask him to attach the illustration to the app using the supplied code. The code can be found at the top of any page of the application:
If you have any questions about how to use ACE or anything having to do with Penn’s application process, give the helpful experts at ACE a call. Their number is 866-223-7651.