With so many life insurance companies vying for your attention, choosing the right one can be a complex decision. This MassMutual life insurance company review aims to simplify your search by offering an in-depth analysis of their products, financial strength, and customer service. MassMutual stands out for its longevity and consistently high financial strength ratings, making them a contender among the best life insurance companies. They provide a diverse range of life insurance options, from term life for temporary coverage to whole life insurance that builds cash value alongside a death benefit. We'll explore the specifics of these plans, diving into their advantages and disadvantages, customer satisfaction ratings, and other crucial factors to help you determine if MassMutual is the ideal fit for your needs.
MassMutual life insurance review
MassMutual Life Insurance provides a variety of policy types, dividends on whole life insurance, flexible term conversion choices, and some of the industry's highest third-party ratings. It also ranks well among our top providers due to its no-medical-exam rules and financial stability.
Pros and Cons
Pros
- Liberal term conversion possibilities
- Opportunity to receive dividends.
- There are very few complaints for a corporation of its magnitude.
- No medical examination policies are available.
- Highest financial strength rating.
Cons:
- Does not accept online credit card payments.
Company Overview
Massachusetts Mutual Life Insurance Company, also known as MassMutual, was formed in 1851 and is headquartered in Springfield, Massachusetts. As of 2022, the company had received more than $9 billion in direct premiums and was the country's second-largest life insurance provider by market share. MassMutual is licensed to sell life insurance in all 50 states and Washington, D.C.
| AM Best Rating | NAIC Score (avg.) | Years In Business | Policy Types | Accepts Credit Cards |
|---|---|---|---|---|
| A++ | N/A | 173 Years | Whole, Term, Universal (UL), Variable Universal (VUL) | No |
Pros Explained
MassMutual offers liberal term conversion options, allowing policyholders to change term life insurance plans into permanent coverage without requiring a medical exam or answering any health questions.
Opportunity to receive dividends: While dividends are not guaranteed, MassMutual has paid them to qualifying whole life insurance policyholders year since 1869.
MassMutual received substantially fewer client complaints than many other insurance firms of comparable size. There are no medical examination policies accessible. No-medical-exam life insurance is available to applicants up to the age of 64 who require coverage ranging from $250,000 to $3 million.
The highest financial strength rating: MassMutual has an A++ financial strength rating from AM Best, which is the highest grade attainable.
Cons Explained
Does not accept credit cards. MassMutual policyholders cannot pay their premiums using a credit card online. The sole payment options are ACH transfers, mailing a paper check, and, in rare situations, making a credit card payment over the phone.
Complaint Index.
MassMutual receives fewer complaints than expected for a firm of its size. To ascertain this, we resorted to the National Association of Insurance Commissioners (NAIC), which creates a complaint index by measuring how many complaints a company receives and comparing it to its market share.
MassMutual has a three-year average complaint index of 0.03. Companies with an index less than one have fewer complaints than expected, and those with an index greater than one have more complaints than anticipated.
Third-Party Ratings
Other rating agencies give MassMutual high grades as well. AM Best has given the company an A++ (Superior) grade, the highest possible rating for financial strength. AM Best assigns letter grades based on a company's balance sheet, operating performance, and indebtedness. The majority of the life insurance companies we assessed received AM Best ratings of A or A+. MassMutual is one of only eight insurance companies we reviewed to receive an A++ rating.
In addition, MassMutual is ranked above average for overall customer satisfaction in J.D. Power's 2022 U.S. Individual Life Insurance Survey. MassMutual rated tenth among 21 life insurance providers, with a score of 780 out of 1,000. The industry average score is 774 out of 1000.
Competition
Every life insurance business offers both advantages and disadvantages. Before choosing a company, examine numerous options to discover the greatest fit. The table below shows how MassMutual compares to New York Life and Transamerica.
| Insurance Company | Our Coverage Options | Dividends Distributed in 2022 | Online Application Status | Our AM Best Rating | Pricing for Term Policies | NAIC-Derived Complaint Index | J.D. Power Ranking |
|---|---|---|---|---|---|---|---|
| MassMutual | We provide Term, Whole, Universal, and Variable Universal insurance. | Available for ease of access. | We shared $1.85 billion in dividends with our policyholders. | We hold an esteemed A++ rating. | Our term policies are priced better than average. | Our complaint index is remarkably low at 0.03. | We are ranked 9th in customer satisfaction. |
| New York Life | Our offerings include Term, Whole, Universal, and Variable insurance | We distributed $1.9 billion in dividends. | Currently, we do not offer an online application. | Our financial strength is rated at A++. | Pricing information is currently not available. | Our complaint index stands at 0.22. | Our J.D. Power ranking is 10th. |
| Transamerica | We offer Term, Whole, Index Universal, and Final Expense coverage. | Dividends were not offered in our plans. | At this time, we do not provide an online application option. | Our financial reliability is reflected in our A rating. | The pricing for our term policies is also better than average. | Our complaint index is 1.78. | We are positioned at 21st in the J.D. Power ranking. |
Life Insurance Options Offered by MassMutual**
Fixed Duration Insurance (Term Life)
This insurance is active for a set time frame, like 10 or 20 years, with stable premiums. If the insured passes away within this period, beneficiaries receive a payout. Younger individuals benefit from lower premiums, which rise with age. Some policies can transition to permanent coverage without a health exam.
MassMutual's Term Policy
MassMutual provides term insurance for 10 to 30 years, with a conversion option to permanent insurance, offering more flexibility than many competitors. Coverage ranges from $100,000 to $10 million, with fixed premiums for the term. Consultation with a MassMutual agent and possibly a medical exam are required.
Lifelong Coverage (Whole Life Insurance)
This whole life insurance policy covers you for life, with consistent premiums and a death benefit. It also accumulates cash value over time. Policyholders may receive dividends, which can enhance the policy's value or cover premiums.
- Whole Life 100: Pay premiums until age 100, with eligibility up to age 90.
- Whole Life 65: Premiums are level until age 65, then the policy is fully paid.
- Whole Life 10/15/20-Pay: Shorter premium periods allow for quicker cash value growth.
- Whole Life HECV: Tailored for businesses, with premiums due until age 85.
Adaptable Coverage (Universal Life Insurance)
Universal life insurance is known for its cash value and adaptability. You can modify premiums and the death benefit based on your financial needs. Some policies can mimic term insurance with a set coverage duration.
UL Guard
This policy lets you choose the length of coverage and premium payment period, available for individuals aged 18 to 85, starting at $50,000 coverage. It includes chronic and terminal illness riders at no extra cost.
SUL Guard
A joint policy for couples, SUL Guard offers permanent coverage with typically lower premiums than individual policies. It's available for ages 18 to 85, starting at $100,000 coverage, with additional rider options.
Investment-Linked Insurance (Variable Universal Life)
VUL insurance allows premium and investment flexibility. You can direct the cash value into various investment options or a fixed account with guaranteed interest.
Apex VUL
This policy merges lifelong protection with the potential for growth through stock market investments. Starting at a $50,000 minimum, it includes a chronic illness rider and the option to increase coverage through a guaranteed insurability rider.
VUL policies carry higher risk due to market fluctuations, which can affect premiums and policy stability.
Enhancements to MassMutual Life Insurance Policies**
Policy Rider Options
Life insurance riders are supplementary benefits that can be added to your primary policy to cover additional needs. Some riders are complimentary, while others may require an additional premium. MassMutual offers a variety of riders to choose from.
Future Coverage Assurance
The guaranteed insurability rider enables you to increase your insurance coverage in the future without a new medical exam. This option is available for key life milestones or at regular intervals between ages 25 and 46.
Premium Payment Relief
If you're unable to work due to disability, the waiver of premium rider ensures your policy remains active without premium payments until you turn 65, or for 10 years if the disability occurs after 65.
Early Benefit for Terminal Illness
MassMutual includes a terminal illness rider at no extra cost, allowing you to access part of your death benefit early if diagnosed with a terminal illness with a life expectancy of 12 months or less.
Long-Term Care Funding
The long-term care rider provides financial support for expenses like nursing home care or home health aid if you're unable to perform certain daily living activities or have cognitive impairments.
Support for Chronic Illness
With a chronic illness rider, you can receive an advance on your death benefit if diagnosed with a chronic illness that prevents you from performing at least two daily living activities. This rider is included with MassMutual’s UL Guard without additional cost.
Availability of riders may vary by state and policy type. It's advisable to consult with an agent for specific availability.
Customer Service Contact
For assistance, you can reach MassMutual at (800) 272-2216, Monday to Friday, 8 a.m. to 8 p.m. ET, or via an online email form.
Cost Comparison
When comparing MassMutual's life insurance premiums with other insurers for a 30-year, $250,000 term policy, MassMutual's rates are competitive but may not be the lowest. It's beneficial to compare rates from various insurers to find the most affordable option.
Overall Assessment
MassMutual is an excellent choice for those seeking whole life insurance with dividends or convertible term life policies. The company's strong financial standing and lower-than-average complaint ratio make it a reliable choice for life insurance.
Application Considerations
For transgender and non-binary individuals, it's recommended to contact MassMutual directly to understand their underwriting practices, as there is no industry standard for premium calculations in such cases.
Common Questions
Company Reputation
MassMutual is a reputable insurer with high financial strength ratings from AM Best and Standard & Poor's, and fewer consumer complaints relative to its size.
Company Ratings
MassMutual has received an A++ (Superior) rating from AM Best and an AA+ (Very Strong) from Standard & Poor's. J.D. Power ranked MassMutual 9th out of 21 companies in its 2022 study.
Ownership Structure
MassMutual is a mutual company, meaning it is owned by its policyholders who may receive dividends or reduced premiums as a share of the profits.
Policy Cancellation
To cancel a MassMutual life insurance policy, contact your financial professional or call the company at 1-800-272-2216.