Pan-American Life is a company built on a 100-year heritage of improving its policyholder’s well-being. Many life insurance companies have come and gone over the years. Pan-American Life is one of the survivors, however.
Our Pan-American Life insurance review will go in depth on its financial strength and its life insurance product offerings. We will also touch briefly on the other insurance product offerings on Pan-American’s menu.
If you are considering buying insurance from Pan-American, you need to read this review first. Every insurance company has different niches and rates tailored to your unique circumstance. You don’t want to make a final decision without comparing multiple companies first.
Pan-American Life Insurance History
Pan-American Life was founded in New Orleans, LA in 1911. Crawford H. Ellis, Edward Simmons, Marion Souchon, and Eugene McGivney were the founding members of Pan-American.
In the beginning, Pan-American Life had a distinct mandate. Pan-American Life was targeting the insurance needs of individuals and business in Latin America. Ellis had recognized a need for insurance services while transporting goods between New Orleans and Central America.
In 2011, Pan-American celebrated its 100th Anniversary as a life insurance company. While Pan-American has grown beyond just servicing Latin America today, Ellis’s vision is still in at the core of Pan-American’s corporate culture.
Today, Pan-American Life serves 22 countries in the Americas, has 1950 employees, has insured over 5.8 million lives, and is a highly-rated and respected life insurance company.
Pan-American Life Ratings and Financial Strength
A life insurance policy is only as good as the company guaranteeing the promise. It doesn’t matter how great a deal you got on your life insurance if the company cannot pay the claim when the time comes.
Third-party rating agencies, such as The A.M. Best Company, will evaluate insurance companies in order to determine the likelihood of payment of benefits. Pan-American Life holds strong ratings with the agencies that have reviewed it.
Pan-American’s is an A-rated company by A.M. Best and Fitch. An A rating is an investment grade financial strength ratings, and it indicates a high likelihood that the company can pay its benefits from a financial perspective.
As of the writing of this review, Pan-American Life is not an accredited business with the Better Business Bureau (BBB). Also, Pan-American Life does not have a BBB rating due to the lack of sufficient information to issue a rating according to the BBB website.
Pan-American Life Insurance Solutions
Pan-American offers life, health, and accident insurance solutions for its policyholders. Pan-American works in both the individual market and the group insurance market offerings quality products to solve their client’s insurance needs.
Pan-American Term Life Insurance
Pan-American offers level-term life insurance that lets you choose a fixed period of time to cover your life. This temporary coverage usually has a lower cost than permanent life insurance and is an ideal option for covering temporary needs like your mortgage balance.
Pan-American offers term life insurance periods in 10, 15, 20, and 30-year level-term periods. During the term period you select, your premium can never be increased, and if you die, your beneficiaries will receive an income-tax-free cash payment.
When your level-term period ends, you have a decision to make. You can continue the policy by paying year-by-year, but the life insurance company can and usually does increase your premiums annually. The increase can be quite large.
Therefore, many clients choose to either replace their term policy or convert it. A term conversion allows you to exchange the temporary term policy with a permanent whole life policy that is lifelong without having to redo any exams or prove your insurability.
Pan-American Whole Life Insurance
Pan-American offers whole life insurance, which is a form of permanent life insurance. Whole life insurance provides your peace of mind that when you die, there will be a set amount of money paid to your loved ones.
Since whole life insurance is a lifetime policy, you cannot outlive the coverage. Whole life insurance also come is strong guarantees that you can rely on. Once your premium is set at the beginning of the policy, it remains level for the remainder of your lifetime.
Whole life insurance also comes with a guaranteed cash value growth. Each year you will be able to predict the cash value that accumulates in the savings account of the policy. The cash value grows tax-deferred, and you get cash from your policy through tax-free loans.
When you pass away, the guaranteed death benefit is paid to your beneficiaries income-tax-free. Any outstanding loans that you have on the policy will be subtracted from the death benefit total.
Whole life can be used for any number of life insurance needs. However, whole life makes a great final expense insurance solution. Final expense policies are simplified issue whole life policies that require no medical exam. The death benefit covers burial and funeral costs.
Pan-American Universal Life Insurance
Pan-American universal life insurance was created to offer policyholders greater flexibility in permanent life insurance compared to the rigidness of whole life. Universal life has a savings component like whole life insurance, but the cash value growth is not guaranteed.
You can select your monthly premium within a certain range and fund the policy as aggressively or tight as you like. The more money you put in the policy, the less reliant you are on the investment return to fund the death benefit later in life.
The cash value grows tax-deferred like whole life insurance, and you can access it through tax-free withdrawals or loans as well. Since universal life insurance often lacks the guarantees of whole life, you need to monitor the policy’s performance frequently to be certain that the policy is able to fund support the expenses of the death benefit.
If the investment performance of your universal life insurance policy performs less than expected, there may not be enough funds in the policy to support the death benefit later in life. As a result, you may need to pay greater premiums or risk losing your life insurance.
Since universal life insurance is a less expensive way of achieving lifelong death benefits, we often use universal life insurance in estate planning scenarios or business succession planning.
Pan-American Health and Accident Insurance
Pan-American also offers some unique health and accident insurance products for seniors looking to supplement their Medicare coverage or travelers looking to protect against accidents while traveling abroad.
Pan-American’s Medicare supplement offers supplemental health insurance that fills the gaps in Medicare insurance. Seniors are often surprised to discover that their Medicare coverage does not cover 100 percent of your medical bills in retirement.
A Medicare supplement policy starts where Medicare ends. There are multiple plans that cover varying levels of your out-of-pocket cost. Some plans have lower premiums with co-pays and deductibles, and some plans cover your entire out-of-pocket expenses with higher premiums.
Pan-American’s accident and health insurance plan protects you when you are outside of your country of residence from the “what ifs” in life whether you are living abroad or taking a quick vacation.
Accidents happen. If you find yourself out of the United States needing medical attention due to illness or an accident, your major medical plan may not cover you. By purchasing this supplemental insurance plan, you are protecting your self financially from foreign medical bills.
Pan-American Group Insurance Solutions
Our agency specializes in the individual marketplace for life insurance. Group insurance is a totally different market, but we will touch briefly on it. Group insurance provides life, health, and ancillary insurance products to employees of companies.
Your employer negotiates a group contract that is available to employees of that business. However, group insurance has limitations, especially on the life insurance side. Often if you are healthy, it makes sense to purchase an individual policy.
When you go through an individual life insurance application, the life insurance company often has greater information regarding your health and can offer your higher coverage amounts or better rates as a result.
Since you own the policy as an individual, you do not have to worry about losing your policy if you are separated from your employment. This combination of versatility and cost savings makes the individual market attractive compared to the group life insurance market.
Final Thoughts: Can Pan-American Hang?
Pan-American is a good insurance company, but they fell short of our best life insurance companies list for a few reasons. While Pan-American has a strong balance sheet, they are not always the most competitively priced life insurance company on the market.
While cost is not the only factor, it is a big one. Life insurance is something you need to qualify for and is highly specific to your individual health. We that is why we recommend comparing the rates of multiple life insurance companies with a knowledgable field underwriter.
There are certain conveniences in underwriting that are developing like no-exam term life insurance. While Pan-American’s underwriting is fair, they are not on the cutting edge like the best no-exam life insurance companies.
Thank you for reading our Pan-American Life insurance review. If you considering Pan-American as a company to protect your family, request a quote from our site or give one of our agents a call. They can go over your options before you make a final decision.
FILED UNDER – INSURANCE COMPANY REVIEWS
RESOURCES: PAN-AMERICAN LIFE INSURANCE
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.