Penn Mutual Life Insurance Review
Life insurance is an important part of planning for the future. If you’re getting married, buying a house, having children, or taking on more responsibility, then you have people depending on your income. When people depend on your finances, it’s important to purchase a life insurance policy in case something unexpected happens.
Penn Mutual is one of the oldest life insurers in the country, so many people turn to them when they buy their life insurance. They offer several types of life insurance and are incredibly financially stable.
If you’re considering Penn Mutual for your life insurance needs, you’re not alone. However, it’s important to learn about them in-depth to find out if they are your best choice.
Our review will tell you if Penn Mutual is the right company for you based on your circumstances. Let’s get started.
About Penn Mutual
Founded in 1847, Penn Mutual is one of the oldest life insurance companies in the nation. They have been a trailblazer in many regards, including being one of the first life insurance companies to offer universal life insurance.
Penn Mutual offers life insurance and annuity products for families and individuals seeking to protect their finances. They also offer a series of products for companies and small businesses.
Penn Mutual is owned by policyholders, which means that they are loyal to customers rather than shareholders. Policyholders can benefit from dividend payouts. When Penn Mutual does well, you can benefit from their success in the form of premium payments, cash value, or just plain cash.
Life Insurance Products Offered
Penn Mutual offers various forms of term and whole life insurance policies. Notably, they have taken the innovative step to offer an accelerated form of underwriting that involves no medical exam.
Penn Mutual’s accelerated underwriting option offers policy approvals in as little as 24 hours. With the industry average being around a month, this is an extremely quick turnaround.
The accelerated underwriting option uses AI to make key assessments about applicants’ insurability to make speedy underwriting decisions. This form of underwriting is available for individuals from ages 20 to 65, with coverage maximum set at $5 million.
This underwriting will make your policy more expensive, but it is an excellent choice for those who believe that their health may jeopardize their insurability.
Here are the different types of policies available to Penn Mutual customers:
Term life insurance, also known as pure insurance, covers an insured for a specified period of time. This period of time, known as a term, is specified at the beginning of the policy and defines the length of coverage. If the insured passes away during this time, a beneficiary will receive a death benefit.
Penn Mutual offers two forms of term life insurance based on if you would like to convert your policy or not.
Protection Non-Convertible Term Life Policy
The first policy, the Protection Non-convertible Term Life policy, is Penn Mutual’s most affordable term life option. It does not allow you to convert your policy to a permanent policy, which allows for a lower premium.
You have the option to include a disability waiver of premium rider, accidental death benefit rider, or a children’s term insurance rider.
This policy offers term options of 10, 15, 20, and 30 years. It is available to insureds up to 70 years old.
Guaranteed Convertible Term Life Policy
The second term life option, the Guaranteed Convertible Term Life policy, allows you to convert to a whole life insurance without any proof of insurability. Your premium payments will remain level for the entire term, but they will increase if you convert to a permanent policy.
This product offers the same term and benefit options as the non-convertible option. It includes the option to add a disability waiver of premium rider, accidental death benefit rider, a children’s term insurance rider, or a long-term disability rider.
Whole life insurance, as the name implies, covers the insured throughout his or her entire life. Because the policy is valid until the insured’s death, there is a guaranteed death benefit.
One benefit of a whole life policy is that it accumulates cash value over time. Basically, a portion of your premium payments goes towards a cash value component that you can borrow against down the line. This cash value grows tax-deferred at a guaranteed rate over time. This can be helpful if you plan to make a large purchase or use the cash value as a line of credit.
Universal life insurance, a form of whole life insurance, offers policyholders the flexibility to change death benefit and premiums. If your financial circumstances change, you can alter your death benefit and premium payments as you please. Be sure to consult a Penn Mutual advisor to make these changes.
As a form of whole life insurance, universal life insurance also accumulates cash value as you pay premiums. The way these cash values grow is defined by the specific type of universal life insurance.
Indexed Universal Life
The first kind, Indexed Universal Life, ties cash value growth to a specific index, such as the S&P 500. If the index performs well, your cash value will grow in accordance.
Penn Mutual sets a minimum return at 1% interest regardless of performance. They also cap the return to offset the risk for each customer. This can help you avoid taking too much of a loss if the index experiences poor performance.
Variable Universal Life
Variable Universal Life, the other universal life policy, places cash value into various investment accounts. The cash value will grow based on each account’s performance, and you can build your own portfolio from 24 investment funds or use a diversified fund based on your risk tolerance.
Survivorship life insurance, also called second-to-die insurance, covers two people under the same policy. They are a type of whole life insurance that pays a death benefit after the second person dies.
These policies are usually used for married couples, and the beneficiary is often a child or children. It is common for people that would like for their children to receive finances to deal with estate taxes.
The whole point of a life insurance company is that they are able to pay out your claim when the time comes. If they don’t have the resources, this could mean that your premium payments were all for naught.
Penn Mutual is in the top 10% of all life insurance company ratings, which means that they are not only financially stable but incredibly strong. But don’t take our word for it. Listen to what insurance rating agencies have to say.
A.M. Best is an insurance rating bureau that judges insurance companies based on credit ratings and financial strength. They have awarded Penn Mutual an A+ Superior rating. Just like in school, this is a very prestigious rating and means that Penn Mutual has a strong financial standing.
Moody’s, like AM Best, rates insurance companies based on their credit and financial stability. They gave Penn Mutual an Aa3 Excellent rating, indicating that they also believe in Penn Mutual’s ability to pay claims.
Standard and Poor’s
Standard and Poor’s is a leading stock index provider and one of the largest credit agencies in the United States. Their rating of A+ Strong indicates that they are confident that Penn Mutual will be around for a long time and upholds their obligation to policyholders.
The Better Business Bureau, or the BBB, rates companies based on their interactions with customers. Customers think very highly of Penn Mutual, so they have an A+ rating with the BBB.
Penn Mutual Life Insurance Quotes
Penn Mutual does not provide quotes for life insurance online. You will need to contact one of their financial advisors to apply and get a quote for life insurance.
Despite this, there are some basic things to know about how to get a low life insurance rate. The main point of underwriting is for a life insurance company to determine the risk that you’ll pass away during your policy term, or how quickly you will pass if you are a permanent policyholder.
Obviously, everyone dies at some point. But there are some things, like health and hobbies, that can put you at a higher risk than others.
Demographic factors, like age and gender, have a major effect on your rates. Women tend to receive lower rates than men, and younger applicants will pay less than older applicants.
Medical history, both personal and familial, also impact your life insurance rates. If you have a family history of heart disease or have diabetes, this will raise your rates.
Lastly, your lifestyle is of importance to an underwriter. If you partake in dangerous pastimes, such as skydiving, you will see this reflected in your life insurance quote.
The best way to get a low rate is to manage your risk factors. Living a healthy lifestyle, managing existing illnesses, and partaking in low-risk hobbies will convey to an underwriter that you are a responsible insured.
In the age of privacy, the way a company manages its data security is incredibly important.
Penn Mutual adheres to industry standards for online security, including using SSL encryption and administrative protocol when handling sensitive information.
Customers can manage their accounts online, including paying bills, updating contact and beneficiary information, initiating claims, and more.
Overall, you can be sure that Penn Mutual is responsibly managing your sensitive information.
Penn Mutual is known for offering tremendous customer service experience. They have an extensive network of agents across the country that can assist you with your policy and any questions you have.
They also have a customer service center that can help you with more routine aspects of customer service, such as tax forms or resetting your online password.
Pros and Cons of Penn Mutual Life Insurance
Penn Mutual is an excellent company, but it’s important to have the full picture before you make a final decision. Here are some of the pros and cons of purchasing your life insurance through Penn Mutual.
- Top financial ratings: Doing business with a company with strong financial ratings ensures that you don’t have to worry about the company going out of business. Penn Mutual is one of the highest-rated companies in the business, which means that it will be around for a long time.
- Possibility for dividends: Penn Mutual is a mutual company, which means they answer to their customers instead of shareholders. If Penn Mutual does well, you could be rewarded in the form of dividends. This could be in the form of cash, policy premiums, cash value, or more.
- Variety of policy options: Penn Mutual is a respected life insurance company with the policy options to match. You can choose between term, whole, and universal life insurance and personalize your coverage through an assortment of riders. They also allow applicants to choose an accelerated underwriting method, which allows you to skip a medical exam.
- No online quoting tool: Innovative as they might be, Penn Mutual still quotes life insurance the old-fashioned way. You will need to contact an agent to find out what sort of rates you qualify for through Penn Mutual.
- Premiums are expensive: When it comes to Penn Mutual, you get what you pay for. They are an excellent company with outstanding products, but they will cost you more than other life insurance companies. If you are interested in the lowest rate, Penn Mutual may not be for you.
- No mobile app: Some life insurance companies develop mobile apps to allow their policyholders to manage accounts on the go. Unfortunately, Penn Mutual has not taken the time to develop something like this yet.
Alternatives to Penn Mutual Life Insurance
Shopping around is an essential part of the life insurance process. If you are interested in Penn Mutual, here are a few other great life insurance companies that you should consider.
Sometimes time is of the essence, and you may need life insurance coverage sooner rather than later. If you are interested in a fast, online process, you may want to check out Bestow.
Bestow is a newer life insurance company, but they have already received great ratings from insurance rating agencies. They offer term life insurance policies online without having to take a medical exam. The entire process takes about five minutes from start to finish.
Bestow isn’t perfect, however. They offer a pretty limited product line, and prices are not as low as some of their competition. If you are in the market for life insurance quickly, Bestow is definitely an option.
Some people would like a life insurance company that is interested in one’s overall financial wellbeing. Foresters is one such company.
Offering their customers a wide range of life insurance products, Foresters believes that people should have a policy that meets their needs specifically. You can choose from term, whole, universal, and variable life insurance policies.
In addition, they also offer a variety of membership benefits, such as financial counseling and retirement planning. This can help you manage your money outside of just life insurance and achieve overall financial wellbeing.
- Read our full Foresters Life Insurance Review.
If you are looking to avoid a medical exam, Nassau RE may be a good option for you.
Nassau RE is one of the oldest life insurance companies in the industry and even insured President Lincoln at the time of his assassination. They offer term life insurance and final expense life insurance, both of which can be purchased without a medical exam.
The application process is not online, but it is fairly quick. Typically, one can complete a phone application with a Nassau RE agent in about 15 minutes.
Nassau RE may not have the lowest prices or most extensive product list, but they are a great no-exam option for people looking to omit health information from their application.
- Read our full Nassau RE Life Insurance Review.
Is Penn Mutual Life Insurance For You?
Penn Mutual is a great life insurance company with a strong history in the industry. They have excellent financial ratings and very few customer complaints.
They may not be the least expensive option out there, but they will give you excellent service for your money.
Be sure to shop around before you settle on a specific life insurance company. If you’re interested in other options, be sure to check out some of our other life insurance reviews.