Exhibit A(5)(h)(1)
Rider - Option to Extend the Maturity Date
The Company agrees, subject to the provisions of this supplemental agreement, to
provide the Option to Extend the Maturity Date as described below. The Company
also agrees to provide all of the other benefits stated in this agreement.
This supplemental agreement is a part of the policy to which it is attached and
supersedes the Deferral of Maturity provision. It is subject to all of the
provisions of the policy unless stated otherwise in this agreement.
Option to Extend the Maturity Date--The Owner will have the option to continue
the Basic Death Benefit under the base policy past the original Maturity Date
listed on Page 3 without evidence of insurability. The option will be exercised,
while this agreement is in force, as of the original Maturity Date. By
exercising this option, the original Maturity Date will be extended a period of
20 years.
The Basic Death Benefit and the Policy Value will continue to be calculated as
defined in the base policy. The attained age Net Single Premium Factor will
equal 1.00 for the maturity extension period. The Basic Cost of Insurance Rate
for attained ages during the maturity extension period will be equal to zero.
New Policy Loans may not be made during the maturity extension period. Policy
Loans taken prior to the original Maturity Date will continue to accrue interest
and the Policy Loan Account will continue to operate as stated in the base
policy.
During the maturity extension period, premium payments will not be accepted
unless necessary to prevent lapse.
All riders and benefits attached to the base policy will terminate as of the
original Maturity Date.
Cost of Insurance--The Cost of Insurance for the Option to Extend the Maturity
Date is determined on a monthly basis. The Cost of Insurance for a policy month
is calculated as (a) multiplied by (b) minus (c), where:
(a) is the Cost of Insurance for this benefit divided by 1,000;
(b) is the Basic Death Benefit at the beginning of the policy month divided by
the monthly equivalent of the guaranteed interest rate;
(c) is the Policy Value at the beginning of the policy month before the
Monthly Deduction.
The Cost of Insurance Rate for this benefit is based on policy year and attained
age, sex and rate class of each Insured. The Cost of Insurance Rates will be
determined by Penn Mutual based on expectations as to future experience.
However, these rates combined with the Cost of Insurance rates on the base
policy will not exceed the Base Rates shown in the Additional Policy
Specifications for the base policy.
Termination--This agreement will terminate upon:
(a) lapse of this policy;
(b) the date of death of the last Insured to die;
(c) surrender of this policy;
(d) the Monthly Anniversary that coincides with or next follows the (I)
receipt at the Home Office of a written request by the Owner to terminate
this agreement and (ii) return of this policy for appropriate endorsement.
Date of Issue--The Date of Issue of this agreement is the same as the Date of
Issue of this policy unless another Date of Issue is shown below.
The Penn Mutual Life Insurance Company
[GRAPHIC OMITTED]
Chairman and
Chief Executive Officer
The policy may be subject to tax consequences when continued beyond the original
Maturity Date. You should consult a qualified tax advisor prior to the exercise
of this option.
