Picking the Right Insurance For You: Penn Mutual vs MassMutual


 It’s not an easy task to find the best life insurance policy that fits all your health and financial needs—especially considering there are over 700 life insurance companies in the US to file through. Purchasing life insurance is a long-term commitment with serious financial variables to think about. That’s why we’ve taken two of the top life insurance companies and compared them for you. In this article, we take a look at Penn Mutual vs MassMutual. Keep on reading to find out what they have to offer. 

Penn Mutual Life Insurance Co.

Originating in Philadelphia, Pen Mutual Life Insurance came about in 1847 and has sold life insurance to people for over 170 years. If you’re looking for a life insurance company with a long solid record, they’ve got it.

They’re also one of the highest-rated insurance companies in their field. 

  1. A.M. Best rating of A+ (Superior)
  2. Moody’s Investors Service rating of Aa3 (Excellent)
  3. Standard & Poor’s rating of A+ (Strong)
  4. Comdex rating of 93

Due to its extensive history and financial strength, Penn Mutual is a good investment for anyone looking to buy life insurance policies or annuity products for individuals and families. Penn Mutual also offers business life insurance for small businesses. 

Penn Mutual Life Insurance Policies

Not all life insurance policies are one-size-fits-all. That’s why it’s essential to have options when it comes to choosing an insurance plan. Penn Mutual offers 3 different types of life insurance plans—term life insurance, universal life insurance, and whole life insurance. 

Term Life Insurance 

Purchase term life insurance policies at Penn Mutual of 10, 15, 20, and 30-year terms. Term life insurance is purchasable for customers all the way up to the age of 70.

Penn’s term life policy has a fixed value that is decided at the time of purchase. The money is distributed as a death benefit on the condition that the policy is in effect when the policyholder passes away. If the customer lives past the term of the policy, the policy is converted into permanent life insurance.

With their Guaranteed Convertible term policy, Penn Mutual allows policyholders to convert all or some of the policy to permanent coverage without having to update their current health. This allows you to get a lot of coverage during low income, and then convert to a better policy once you’re more financially able.

Term policies do not build cash value. This means no loans or access to cash value is available. 

Universal Life Insurance

Penn Mutual offers several types of permanent life insurance policies, including universal life insurance. They also offer variable universal life, survivorship universal life, guaranteed universal life, and current assumption universal life.

Universal life policies offer flexible premiums. It also allows customers to use the cash value of the policy to cover missed payments. 

Variable Universal life policies have premiums that change throughout the lifespan of the policy. This allows you to customize your payments to fit your financial needs.

With an indexed universal life policy, you get to base the cash value growth of your policy on an index—for example, the S&P 500. In this plan, the cash value is based on investments you decide on. You get to build your own portfolio depending on your risk tolerance. 

Whole Life Insurance

Penn Mutual offers a whole life and a survivorship whole life policy. With a whole life policy, you see guaranteed premiums while the cash value grows at a guaranteed rate. On top of the guaranteed rate, additional value is added when dividends are paid. Although dividends are not a guaranteed thing, Penn Mutual has a record of paying policyholders dividends every year since it was founded.

It’s also good to note that Penn has critical care included on all whole life policies above a table D rating. This means that if you fall terminally ill, Penn Mutual will give you a lump sum payment. Universal and whole life insurance are types of permanent life insurance. Permanent life insurance provides death benefit protection for life, as well as the ability to grow cash value that you can access at any time. Penn Mutual offers policyholders the ability to borrow money against the cash value of the policy whenever they want.

Penn Mutual Rates

Unfortunately, Penn Mutual doesn’t offer an option for online quotes. In order to find out insurance quotes in your area, you’ll have to call an agent in your region.

Paid Dividends

Pen Mutual is a mutual company. This means it’s a private insurance company that is owned by its policyholders. When you buy a whole life insurance plan, you get to share in dividend payouts if and when the company profits. In 2020 alone, Penn Mutual’s dividend payout to policy owners was $100 million total.

The average dividend rate from the past 15 years is 6.25%. There was a high of 6.34% between the years 2008 and 2018, and a low of 5.75% currently in 2021. Penn Mutual’s current total share of the market is just over 1%.

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