Not all life insurance companies are created equal. What you should be looking for when selecting a life insurance company to protect your family is reliability, affordability, and product focus. Our Penn Mutal life insurance review will break down all of those factors so you can make an informed decision.
So where does Penn Mutual life insurance excel? In our opinion, Penn Mutual’s greatest value is its participating whole life insurance. If you want a bargain on term life insurance, there are better life insurance companies to achieve that goal. If you want the guarantees of whole life insurance, then continue reading to see how Penn Mutual stacks up against the competition.
Shall we begin?
Penn Mutual Life Insurance Company History
Penn Mutual Life Insurance Company was founded in 1847 in Philadelphia, PA. That makes Penn Mutual Life Insurance Company over 170-years old! One year later, Penn Mutual paid its first death claim of a whopping $4,963.33 on the life of Mr. William B. Cooper. By 1849, Penn Mutual paid its first dividend to policyholders commencing its long trajectory of profitability.
Penn Mutual grew in the 1900s offering a broader array of services. By 1920, Penn Mutual reached $1 billion of in force life insurance and had well over $100 million in total assets. Penn Mutual navigated through the Great Depression and World War 2 and by 1968 had over one million of Penn Mutual insurance policies and master group contracts in force.
The 1980s marked an exciting time in the Penn Mutual Life Insurance Company’s history. Penn Mutual was on the cutting edge of universal life insurance as the first major east coast life insurance company to introduce that product to their lineup.
In 2003, the Penn Mutual Life Insurance Company hit another milestone after being voted the 8th best place to work in the state of Pennsylvania. During the financial crisis of 2008 A.M. Best Company recognized Penn Mutual for receiving a financial strength rating of “A” or higher for a minimum of 75 years! While other financial institutions were crumbling, Penn Mutual was receiving awards for their iron-clad financials.
Today, the Penn Mutual Life Insurance Company is still a mutual organization that is owned by policyholders, not Wall Street shareholders. With over $150 billion of life insurance protection in force in 2018 and $25 Billion in assets under management, Penn Mutual continues to make good on their promises to their policyholders.
Penn Mutual Life Insurance Ratings and Financial Strength
What are Penn Mutual’s life insurance ratings? Penn Mutual holds some of the highest ratings from all the major third-party life insurance ratings agencies. A.M. Best rates the Penn Mutual Life Insurance Company as A+ (Superior). Standard and Poor’s, Moody’s, Kroll Bond Rating Agency and Comdex all rate Penn Mutual as investment grade as well.
|A.M. Best||Standard & Poor's||Moody's||Kroll Bond||Comdex|
Penn Mutual also has received a rating of A+ from the Better Business Bureau (BBB), which indicates that the Penn Mutual Life Insurance Company is in the elite when it comes to resolving customer grievances.
Penn Mutual Life Insurance Products and Solutions
Penn Mutual offers life insurance solutions for both the short term and long term. In addition to life insurance, Penn Mutual offers various annuity products for retirement income solutions. Our reviews focus on life insurance first and foremost, but we will touch on Penn Mutual’s annuities as well.
Penn Mutual Term Life Insurance
Term life insurance is an essential part of any well-crafted financial plan. Term life insurance was created to provide short-term protection for temporary life insurance needs such as wage replacement, mortgage protection, or higher education expenses.
Penn Mutual’s term life insurance comes in 10, 15, and 20-year term periods; although, surprisingly no 30-year term period. Penn Mutual has a waiver of premium disability rider and accidental death benefit rider that can be added on. Penn Mutual also has a children’s term rider that provides valuable coverage for your children conveniently on your policy.
Penn Mutual also has a conversion option built into their term life insurance policy that allows you to exchange your term contract with any permanent policy available for purchase at the time of conversion. As far as conversion options go, Penn Mutual has one of the better ones out there.
Penn Mutual Whole Life Insurance
Penn Mutual’s bread and butter product is their whole life product. Whole life insurance comes loaded with guarantees. It has guaranteed death benefits, guaranteed level premiums that cannot go up, and guaranteed cash accumulation.
Penn Mutual’s whole life insurance is a participating policy, which is eligible to receive non-guaranteed dividends annually. These dividends can be reinvested in your policy as paid-up additions that increase the cash value and the death benefit over time.
The dividend is what supercharges Penn Mutual’s whole life insurance. Penn Mutual’s strong dividend history has garnered them a reputation of a top whole life provider. The cash grows tax-deferred within the whole life policy, and you can take a tax-free loan against your policy if you need cash.
Whole life is a conservative vehicle that is not tied to the stock market. In addition to the death benefit protection, Penn Mutual’s whole life insurance policy also includes a chronic illness accelerated death benefit rider that allows you to accelerate a portion of the death benefit if you are diagnosed with a chronic illness.
Penn Mutual also offers survivorship whole life insurance also known as a joint-life or second-to-die policy. These policies cover the lives of two insureds, and it pays after the death of the second person. Survivorship whole life insurance is used mostly in estate planning and legacy cases.
Penn Mutual Universal Life Insurance
Penn Mutual also offers universal life insurance, which is an alternative to whole life insurance for lifelong death benefit protection. Universal life generally dials down the guarantees of whole life insurance, but universal life tends to have lower premiums as a result.
Clients often will ask us which type of life insurance is “the best.” The answer really depends on what you want your insurance to do. Universal life can be structured to build cash value or for lifetime death benefit but universal life insurance usually falls short of the guarantees that whole life provides.
Penn Mutual universal life insurance options:
To learn more about Penn Mutual and their life insurance solutions, you can visit them on the web or call the Penn Mutual Life Insurance phone number 1-800-523-0650.
Penn Mutual Annuities
Life insurance is for when you die prematurely, but what happens if you live too long? Life insurance companies also have a solution to that problem as well. You see the longer you live into retirement, the higher the chance that you will run out of money, which is known as longevity risk.
Purchasing an annuity guarantees that you will never outlive your income no matter how long you live. There are multiple types of annuities that you can purchase that protect against this risk. Some annuities require you to transfer your money to the insurance company to manage for a higher payout. Other annuities allow you to keep control of your cash but may charge you a lower income payout.
Penn Mutual Annuity Options:
Final Thoughts: Is Penn Mutual Life Insurance Legit?
Penn Mutual is unquestionably a reliable company. Penn Mutual is still structured as a mutual company, which means they answer to policyholders, not stockholders. If you are looking for quality life insurance, especially whole life insurance then Penn Mutual should be a consideration.
If you are looking for the rock-bottom lowest rate on term insurance, then there could be other more affordable options available. Penn Mutual’s term life insurance has features we like, such as their term conversion option. However, you may not see the value in paying a higher premium for this feature if you have no desire to convert the policy into a permanent policy.
Penn Mutual’s underwriting is fair, but it is old school. If you are looking for no-exam term life insurance, we would suggest looking at the best no-exam life insurance companies. No-exam life insurance coverage can speed up the process of purchasing life insurance considerably for those who qualify.
Finally, we always suggested getting the quote of a few different companies to be sure you are making the right choice. Life insurance companies all have a different opinion on pricing an underwriting. Sometimes the company that will give you the best deal isn’t always the top company on the chart.
If you are looking for life insurance, request a quote from one of our veteran agents today. Our team will compare the rates of multiple insurance companies to find you the best deal that we can.
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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.