Midland National Life Insurance Reviews [Strong and Reliable]

Midland National Life Insurance Company is one of the many historic life insurance companies in the United States.  Midland National Life offers term life insurance, universal life insurance, and annuities.

Our Midland National Life insurance review will cover their life insurance. We’ll discuss Midland’s products, financial ratings, and other subsidiary companies that Midland is associated with.

Let’s get started!

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About the Midland National Life Insurance Company

Midland National Life Insurance Company was founded in 1906 under the name of Dakota Mutual Life Insurance Company. Midland National Life has been serving its policyholders for over 100 years!

Midland National Life experienced consistent growth throughout the 1900s. Midland National was able to navigate past things like the World Wars and the Great Depression. In 1925, the company changed its name to Midland National Life Insurance Company.

Midland National Life is a privately owned company. Midland National is a member of Sammons Financial Group, Inc. Sammons Financial Group also owns the North American Company for Life and Health Insurance.

Midland National Life is committed to providing affordable life insurance and annuity products by keeping their costs low, having a long-term focus, and maintaining a high-quality investment portfolio.

Midland National Life Ratings and Financial Strength

A promise is only as good as the company making it. Midland National Life has a long and proud history of keeping the promises that they make since 1906.

Midland National Life Stats*:

  • More than $1 million life insurance and annuity policies held
  • More than $56.5 billion in assets
  • 96% of bond investments are investment grade
  • $156 billion life insurance in force

*Stats as of Dec. 31, 2017

 Midland National Life holds some of the highest ratings from independent third-party rating agencies such as the A.M Best Company.  A.M. Best rates Midland National Life as an A+ (Superior), which is one of their highest ratings.

Standard and Poor’s and Fitch also rates Midland National Life with an A+ (Strong) rating. An A+ rating from S&P and Fitch is considered to be investment grade and indicates a high level of financial strength.

Midland National Life has been accredited by the Better Business Bureau (BBB) since January 30, 2017. As of the writing of this article, Midland National Life Insurance Company has a BBB Rating of A+, which is the highest award.

Midland National Life Insurance Solutions

Midland National Life has various types of life insurance and annuity solutions for their policyholders depending on your needs. Midland National Life insurance is similar to the products offered at North American Life Insurance company; although, not always identical.

Midland National Life Term Life Insurance

Midland National term life insurance is an excellent choice to protect your family if you die prematurely. It is straightforward protection that is easy to understand. You die, and the insurance company writes a check.

Term life insurance is temporary. You purchase it for a certain amount of years, for example, a 20-year term duration. Therefore, it is best used for temporary needs like mortgage protection or income replacement.

Once you select a term period, the life insurance company locks in your rate for whatever term period you select. After your term is up, the life insurance company can raise the rate on you, which is why most people either replace or convert the policy.

Midland National Life also includes living benefits on some of their term life insurance policies that allow you to advanced a portion of the death benefit if you are diagnosed with a serious illness.

Midland National’s underwriting is tight but fair. Midland National has an accelerated underwriting program simliar to North American’s program. However, they do not offer a true no-exam life insurance option like Sagicor Life.

Midland National Life Universal Life Insurance

Midland National Life insurance offers universal life insurance (UL), guaranteed universal life insurance (GUL) and indexed universal life insurance (IUL). All three life insurance policies have lifelong death benefits with some key differences.

Midland National Universal Life Insurance provides lifetime death benefit protection combined with the potential for cash value accumulation. A portion of your premium is deposited in a savings account and credited a declared fixed interest rate annually.

This interest rate fluctuates based on market conditions, and your cash value grows tax-deferred within the policy. If you need to access your cash value, you can remove money from the policy through tax-free withdrawals or loans.

If you do not repay your loans while you are alive, then the life insurance company will pay the loan from your death benefit when you die.

Universal life insurance does not come with a lifetime guaranteed like GUL or whole life insurance. Since the policy’s long-term health is dependent on the interest rates, you should monitor the policy frequently to make sure it is funded fully.

Midland National Guaranteed Universal Insurance similar to term life insurance in that its main focus is on death benefit protection. The main difference is that term life insurance is temporary, where GUL is meant to cover your entire life.

With GUL, your premium is locked in for the duration of the policy.  As long as you pay the required guaranteed premium, the life insurance company has to pay your death benefit to your loved ones when you die.

GUL has little or no cash value whatsoever. However, if you only want guaranteed death benefit and do not care about cash value, GUL is your most cost-effective option. Due to the economical premiums, GUL is often useful in death-benefit-focused estate planning situations.

Midland National Indexed Universal Life gives you lifetime death benefit protection but also provides potential long-term cash value accumulation through indexing strategies that credit your cash value interest based on the movement of a stock market index.

While your interest credit is dependent on the upward movement of the stock market, your principal is not directly invested in the stock market. As a result, if the stock market goes down, your principal will not lose any money due to investment losses.

However, downside protection has a cost. Your upside is capped at a certain amount, unlike investing in the stock market directly.

Your cash value grows tax-deferred. You can always remove money from the policy through tax-free loans and withdrawals. Additionally, you can accelerate your death benefits due to a qualifying serious illness.

Midland National no longer offers variable universal life insurance. If you own a variable life insurance policy from Midland National Life, you can still see old prospectuses on the Midland National website.

***Critical Update***

Midland National Annuities

Midland National also offers annuities, which are a form of longevity insurance. Life insurance pays out when you die. Annuities pay while you are alive! Life insurance is our niche, but we will touch briefly on Midland Annuities for those interested.

Midland National Life offers the following annuity options:

  • Multi-year guaranteed annuities (MYGAs)
  • Single premium immediate annuities (SPIAs)
  • Fixed index annuities (FIAs)

Midland National MYGAs are like the Certificate of Deposit (CD) of the insurance world. You receive a guaranteed interest rate in exchange for locking up your money for an agreed upon period of time.

The longer you commit your money, the higher the interest rate the life insurance company will offer to pay you. Your money grows tax-deferred, and at the end of the MYGA, you can access the money or transfer it into a new annuity.

Midland National SPIAs are the original annuity. You pay the life insurance company a lump-sum of money, and they agree to pay you an income stream often for life.

This structure allows you to maximize your guaranteed income. However, the exchange is irreversible. Once you make the trade, you cannot access the principal amount. You can request a return of premium death benefit though if you die before your payment is completely returned.

Midland National FIAs

Fixed index annuities have grown in popularity in recent years because they offer clients a way of having lifetime guaranteed income with access to their principal. Unlike SPIAs, you do not need to annuitize the contract to get a pension-like income stream.

Final Thoughts: Is Midland National Life Legit?

Thank you for reading your Midland National Life insurance review. Midland National is a legit life insurance company.

They have been in business for over 100 years, and their financial strength is rock-solid.  However, they might not be the best company for you.

Midland National did not make our list of best life insurance companies because they do not stand out in our opinion. If you have a pre-existing health condition or want no-exam life insurance, we’d look at other options.

Regardless, if you are looking for life insurance, we usually suggest comparing the rates of multiple life insurance companies. Life insurance carriers have different views on rates and underwriting.

A life insurance broker can help you narrow down the companies that will give you a great deal. A broker who is good at field underwriting can potentially save you thousands on your life insurance.

If you are considering Midland National or looking for life insurance, please request a quote or give us a call. We can take a look at your quote and give you our honest opinion one way or the other.

FILED UNDER – INSURANCE COMPANY REVIEWS

RESOURCES – MIDLAND NATIONAL

Joseph Cirillo of Good Life Protection

Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs.  Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.