In today's world, securing your loved ones' financial future is a top priority. This is where Penn Mutual Life Insurance steps in, offering a variety of life insurance products to suit your specific needs and goals. Whether you're seeking lifelong coverage, wealth accumulation, or temporary protection, Penn Mutual has a plan designed to provide peace of mind.
But with so many life insurance providers on the market, how do you know if Penn Mutual is the right choice for you? This comprehensive review will delve into Penn Mutual's offerings, exploring their financial strength, policy options, customer service ratings, and more. By the end of this article, you'll be equipped to make an informed decision about whether Penn Mutual is the ideal life insurance provider to safeguard your loved ones' financial well-being.
Introduction of Penn Mutual Life Insurance
Professional Assessment: Penn Mutual, an established entity with a legacy of reliable dividend distribution, boasts commendable financial stability and a track record of minimal customer grievances. The company offers high-value life insurance policies without the need for medical examinations, alongside reasonably priced term insurance plans. However, it could improve its digital presence by enhancing the functionality and informational content of its website.
Pros and Cons
Pros
- Competitive Term Policy Pricing
- Flexible Term Conversion Opportunities
- Established Record of Dividend Payments
- Substantial Coverage Without Medical Exams
- Minimal Customer Complaints
Cons
- Generalized Website Content
- Absence of Online Applications
- Lack of Immediate Online Quotes
Specifications
| AM Best Rating | NAIC Score (avg.) | Years In Business | Policy Types | Accepts Credit Cards |
|---|---|---|---|---|
| A+ | N/A | 175 Years | Universal (UL), Term, Whole, Variable Universal (VUL) | Indeed |
Pros Penn Mutual's Life Insurance Explained:
Competitive Term Policy Pricing
Penn Mutual ranks impressively as the fourth most economical option among 32 insurers for term life policies. Our rate comparison for healthy individuals, both male and female, seeking a 30-year term policy with a $250,000 benefit, shows Penn Mutual's consistent affordability across various age brackets.
Flexible Term Conversion Opportunities
Penn Mutual's Guaranteed Convertible Term policy stands out for its flexibility, allowing policyholders to upgrade to any of the company's whole life insurance products. This level of choice is superior to some competitors, which limit the options for conversion. Policyholders can convert their term policy into permanent coverage anytime within the chosen term, up to a 20-year maximum or until the age of 70, whichever comes first—offering a broader window than the typical 10-year conversion period offered by other insurers.
Established Record of Dividend Payments
Penn Mutual boasts the most extended history of dividend payments among the 91 life insurance providers we evaluated, with a consistent payout streak for the past 174 years. This surpasses nearly all competitors, with New York Life trailing just behind at 169 consecutive years.
Substantial Coverage Without Medical Exams
Penn Mutual offers a selection of policies that provide up to $7.5 million in coverage without the prerequisite of a medical examination, potentially granting approval on the same day. This is the highest coverage amount available without a medical exam that we've found in our research, a claim also made by Penn Mutual.
Minimal Customer Complaints
In the realm of customer service, Penn Mutual has an exemplary record, with only two complaints registered in 2022 and ten in 2021. Considering its status as one of the nation's largest insurers, this low complaint volume is noteworthy.
Cons Explained
Generalized Website Content
The information provided on Penn Mutual's website regarding coverage is somewhat vague. Prospective customers may need to navigate the site thoroughly or engage with a company representative to obtain more specific details about policy options.
Absence of Online Applications
Unlike some insurers that offer online applications for term or guaranteed issue policies, Penn Mutual requires prospective clients to initiate contact with a company agent to set up a new policy.
Lack of Immediate Online Quotes
While many insurance providers feature instant online quotes for term life insurance, Penn Mutual does not currently offer this service. Interested parties must consult with an agent to receive pricing details for any policy.
Complaint Index Insight
Penn Mutual's performance in customer satisfaction is commendable, placing it within the top 15% of all companies reviewed, based on the low frequency of complaints. This assessment is derived from the National Association of Insurance Commissioners (NAIC) data.
The NAIC's annual complaint index provides a comparative measure of the volume of complaints received by insurance companies relative to their size. An index score of 1.0 indicates an expected number of complaints for a company's size. A score below 1.0 signifies fewer complaints than anticipated, while a score above 1.0 suggests a higher number of complaints. For instance, an index score of 2.0 would imply double the number of expected complaints.
Over the past three years, Penn Mutual's complaint index has been notably low, averaging at 0.2. This indicates that the company has received significantly fewer complaints than one would expect for its size.
Financial Strength Ratings:
Annually, AM Best evaluates the financial solidity of U.S. insurance firms. Penn Mutual holds an A+ rating, which is the second-highest rating category by AM Best. An A+ rating signifies Penn Mutual's superior capability to meet its insurance commitments, including claim payments.
Market Comparison:
When selecting life insurance, it's essential to opt for a robust company that offers the desired features and to understand how it compares to its competitors. Our evaluations consider both the NAIC complaint index scores and AM Best ratings. The NAIC index reflects the number of complaints relative to the company's size, while AM Best grades a company's claim payment ability on a scale, with A++ being the pinnacle. All top-rated life insurance companies in our list maintain a minimum of an A rating.
| Insurance Firm | Coverage Types | 2022 Dividends | Online Policy Application | AM Best Financial Rating | Term Policy Value | 3-Year Avg. Complaint Index |
|---|---|---|---|---|---|---|
| Penn Mutual | Whole, term, universal, indexed universal, variable universal | $123 million | Not available | A+ | Very Good | 0.2 |
| Guardian Life Insurance | Whole, term, universal, variable universal | $1.13 billion | Not available | A++ | Average | 0.693 |
| Mutual of Omaha | Term, universal, indexed universal, variable universal, final expense | Not applicable | Available (specific to guaranteed issue whole life) | A+ | Average | 0.756 |
Insurance Options Provided by Penn Mutual:
Penn Mutual presents an extensive array of insurance policies, with many of its life insurance products qualifying for underwriting without a medical exam for coverage amounts up to $7.5 million.
Term Life Insurance:
Term life insurance ensures a payout to the beneficiaries if the insured passes away within a set timeframe, such as 15 or 30 years. It provides coverage at a stable premium rate but does not accumulate cash value and expires at the end of the term. Penn Mutual's term life insurance options include:
Guaranteed Convertible Term: These policies provide short-term coverage with terms of 10, 15, 20, and 30 years, including the flexibility to switch to permanent coverage before turning 70 or within the first 20 years of a 30-year term.
Protection Non-Convertible Term: This policy is available in 10, 15, 20, and 30-year terms and is the most budget-friendly option, without the possibility of converting to permanent coverage.
One-Year Term: This policy renews yearly with an increasing rate but allows conversion to any permanent product offered by Penn Mutual until the age of 84.
Whole Life Insurance:
Whole life insurance provides a death benefit to the beneficiaries upon the policyholder's demise. It guarantees lifetime coverage, provided premiums are paid, and builds cash value over time, which can be borrowed or withdrawn. Penn Mutual's whole life insurance plans include:
Guaranteed Whole Life II: Offers protection until age 121 with fixed premiums. Available for individuals from birth up to age 85, with the option for early premium payoff to avoid payments during retirement. Premiums can be paid in intervals up to every five years until age 100, and the policy is adaptable with various riders.
Survivorship Whole Life: This policy covers two individuals, like spouses or business partners, and passes to the survivor upon the first's death. It includes a 10-year payment plan, the choice to extend premium payments until the survivor reaches 100, and a guaranteed death benefit until the survivor is 121.
Universal Life Insurance
Universal Life (UL) insurance is a type of permanent life coverage that includes a cash value component, similar to whole life insurance. The cash value accrues based on an interest rate set by the insurer, often with a guaranteed minimum rate. UL policies offer greater adaptability than whole life policies, allowing policyholders to adjust the death benefit and premium payments, subject to certain conditions. However, to maintain coverage, premiums may need to be increased in later years. Penn Mutual's UL offerings include:
Guaranteed Protection UL: This policy provides lifelong death benefit protection at a competitive rate, with guarantees against policy lapse until the age of 121. It also allows for flexible payment options and includes a chronic illness accelerated death benefit at no additional cost upon issuance.
Protection UL: As a more affordable alternative to Guaranteed Protection UL, this policy ensures coverage without lapse until age 100, with advantageous premium and coverage guarantees beyond age 90. It offers flexibility in premium payments and death benefits, with the option to defer a premium payment if the policy's cash value is adequate. A chronic illness accelerated death benefit rider is included at no extra charge.
Variable Life Insurance Insights:
Variable Universal Life (VUL) insurance is a permanent life insurance variant that permits investment of the policy's cash value in the stock market through subaccounts resembling mutual funds. VUL is considered the most volatile life insurance type due to the potential for cash value loss if investments underperform, increasing the likelihood of policy lapse.
Diversified Advantage VUL: This policy provides opportunities for income growth through investments in variable accounts and the choice to link cash value increases to indexed accounts that are not directly market-invested. This hybrid policy merges the characteristics of VUL and Indexed Universal Life (IUL) insurance.
Protection VUL: Offering guaranteed lifetime protection, Protection VUL includes a no-lapse guarantee rider at no additional cost. It features lower-cost investment choices but does not provide indexed accounts like the Diversified Advantage VUL.
Indexed Universal Life Insurance Clarified:
Indexed Universal Life (IUL) insurance aims to balance the high-risk profile of VUL policies with the stability and lower risk of UL and whole life insurance. Contrary to some beliefs, the cash value in IUL policies is not directly invested in market indices such as the S&P 500. Instead, the cash value is credited with gains (but not losses) based on the index's performance to which it is linked. This design offers a compromise between growth potential and financial security.
Penn Mutual's Indexed Universal Life Insurance Policies:
Accumulation Builder Flex IUL:
This policy is linked to the performance of the S&P 500 index and offers a diverse range of indexed account options, including accounts with high caps and no caps, as well as a fixed account. It guarantees a minimum return of 1%, ensuring a baseline level of growth.
Survivorship Plus Select IUL:
Designed for two insured individuals, this policy pays out upon the passing of the second insured person. It is tied to either the S&P 500 or the S&P Global Broad Market index, providing a selection of five indexed account options. The policy includes a guaranteed 1% minimum return and introduces policy enhancements at age 51 or in the 11th policy year, whichever is later. A 20-year no-lapse guarantee is standard, with up to 13 additional riders available to increase the policy's value, including an extended no-lapse rider.
Important! Caps are set to limit the maximum credited gains in an IUL policy. For instance, if the policy is linked to the annual performance of the S&P 500 with a cap of 6%, the cash value will not be credited more than 6%, even if the index sees higher returns.
Insurance Policy Riders Offered by Penn Mutual:
Guaranteed Increase Option Rider:
This rider enables the policyholder to augment their coverage amount without undergoing a medical examination. It can be utilized at specific ages or life events such as marriage or childbirth, up to the age of 40.
Children’s Term Insurance Rider:
This rider provides a death benefit for the policyholder's children, with coverage up to $25,000. It is applicable to children up to 17 years old and remains active until they turn 23, at which point they have the option to convert to permanent life insurance.
Disability Waiver of Premium Rider:
Penn Mutual offers several disability premium waiver riders. Each waives premium expenses if you become disabled after completing a four-month waiting period.
Accelerated Death Benefit for Terminal Illness Rider:
This rider allows policyholders diagnosed with a terminal illness and a life expectancy of 12 months or less to receive a lump-sum payment. The payout is capped at 50% of the policy's face value or $250,000, whichever is lower, and is offered at no extra cost in some policies.
Chronic Illness Accelerated Benefit:
Distinct from the terminal illness benefit, this allows policyholders with chronic illnesses to access a portion of their death benefit while still alive. It is activated if the policyholder is unable to perform at least two activities of daily living (ADLs) or experiences severe cognitive impairment for a minimum of 90 days. This benefit is typically included in most of Penn Mutual's permanent policies.
Tip: Also known as "living benefits," these provisions in life insurance policies permit the insured to receive a part of their death benefit while still alive, providing financial support during challenging times.
Accidental Death Benefit Rider:
Distinct from the accelerated death benefit, this rider augments the life insurance payout with an additional sum if the insured's demise is due to an accident. The extra payment is proportional to the policy's coverage amount and the specifics of the rider.
Customer Support Services:
Penn Mutual's online portal is accessible around the clock at pennmutual.com. For direct assistance, clients can reach out to the customer service team at (800-523-0650) from Monday to Friday, between 8:30 a.m. and 6 p.m. Eastern Time. Email support is available 24/7 at websupport@pennmutual.com, and policyholders have the capability to manage their accounts or initiate claims through the website.
Pricing and Affordability:
Penn Mutual is recognized for offering competitively priced term policies, ranking fourth in affordability among 32 evaluated life insurance companies. This ranking applies to various age groups for both male and female applicants in excellent health. Notably, Penn Mutual's nonconvertible term policies are the most economical, while convertible options may incur higher costs.
Who Is Penn Mutual Best For?
Penn Mutual is an excellent option for those who prefer personal interaction with an agent to obtain quotes and detailed policy information. The company's extensive product range, advantageous policy features, and options for no-exam insurance policies cater to a broad audience. Particularly noteworthy are its longstanding tradition of dividend payments and the availability of high-coverage, no-medical-exam life insurance.
For those interested in term policies, Penn Mutual's offerings are attractive due to their competitive pricing, extensive conversion options, and the flexibility to upgrade to any available permanent product.
Conclusive Assessment:
Penn Mutual Life Insurance Company is distinguished as the top choice for whole life insurance based on dividends, having consistently distributed them for 174 years. The company's diverse life insurance policies are designed to meet a variety of financial needs, investment objectives, and budgetary considerations. If you're seeking a substantial, dividend-paying policy without the requirement of a medical exam, Penn Mutual could be the right fit.
Frequently Asked Questions:
Ownership of Penn Mutual:
Penn Mutual is a mutual company, meaning it is owned by its policyholders, not stockholders. This structure enables policyholders to partake in regular dividend distributions.
Insurance Offerings by Penn Mutual:
Penn Mutual provides a spectrum of life insurance policies, encompassing both permanent and term life categories, in addition to annuities.
Liquidating Penn Mutual Life Insurance:
Policyholders can surrender their policy at any time, receiving the net cash surrender value after accounting for any applicable surrender charges. In financial emergencies, policyholders can access funds from their policy, which may reduce the death benefit but typically does not nullify it.
Verifying Active Penn Mutual Policies:
To ascertain the existence of a Penn Mutual life insurance policy, individuals can utilize the NAIC's life insurance policy locator service, available online at no cost. The NAIC will request Penn Mutual to verify its records, and the company will subsequently contact the inquirer, who must demonstrate authorization to receive policy information.
Methodological Approach:
Our evaluation methodology was meticulously crafted, focusing on consumer priorities and fundamental aspects of life insurance companies. We analyzed over 90 insurers across five key categories: financial robustness, customer contentment, diversity of products and features, the purchasing experience, and pricing. By gathering over 5,000 data points and applying 55 distinct metrics, we assessed each insurer's performance within individual categories and overall, after applying weighted scores.