Penn Mutual Life Insurance

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Philadelphia, Pennsylvania is home to the Penn Mutual Life Insurance Company (Penn Mutual), which was founded in February 1847. A mutual company’s sole owners are its policyholders, as opposed to shareholders. Policyholders are considered owners and are entitled to dividend payments each year. In fact, for nearly 175 years, Penn Mutual has reliably distributed dividends to its policyholders who qualify.

Penn Mutual, with annual premiums of over $2.5 billion, is one of the top 25 largest life insurance firms in the United States. Plans from Penn Mutual are accessible to residents of all 50 states and DC.

Reasons Why

Penn Mutual offers competitively priced term policies, ranking fourth lowest out of the 32 insurance providers we surveyed. We compared prices for $250,000 in coverage over 30 years for both healthy men and women of varying ages. In every age bracket, Penn Mutual performed admirably.

Penn Mutual’s Guaranteed Convertible Term insurance is particularly attractive because it can be converted to any of their whole life products. When opposed to businesses who don’t offer term conversion on all of their holdings, this is a definite plus. During the designated term period, which can be as long as 20 years or until you turn 70, whichever comes first, you have the option to convert the death benefit to permanent coverage. Some insurance providers may demand a policy change within the first decade of coverage.

Among the 91 life insurance companies we looked at, this one had the longest track record of dividend payments. For the last 174 years, it has provided for them. Second place goes to New York Life, which has paid out dividends to policyholders for 169 consecutive years.

No medical exam is required to open a policy with Penn Mutual, and coverage amounts up to $7.5 million may be granted on the same business day. Penn Mutual states that this is the greatest sum available for no medical exam life insurance, and it is the highest number we came across in our investigation.

Penn Mutual received only 10 complaints in 2021 and only 2 complaints in 2022 in regards to life insurance. This is a remarkable achievement for one of the top insurance providers in the country.

Cons 

Penn Mutual’s website lacks depth; the coverage descriptions provided there are too broad. Customers looking for specifics on the different types of coverage available will have to dig around the site or give the provider a call.

Some insurance providers only accept applications in person, while others allow customers to apply for term policies or guaranteed issue policies online without the assistance of an agent. Penn Mutual requires new clients to speak with a salesperson before they can enroll in a plan.

Although many other insurance companies’ websites offer instant quotations for term life insurance, Penn Mutual’s does not. Get in touch with an agent if you want to know how much various policies will cost you.

Complaint Index

When compared to other businesses we looked at, Penn Mutual has one of the lowest complaint rates. Information from the NAIC provides the basis for this conclusion.

The NAIC issues a nationwide insurance complaint index every year. This index allows for a comparison of businesses based on two key metrics: the volume of customer complaints and the size of the business.

A complaint index of 1.0 indicates that the company is receiving an appropriate number of complaints given its size. If the number is less than 1, fewer complaints were received than anticipated, and if it’s larger than 1, more complaints were received. If the index were 2, for instance, that would mean there were twice as many complaints as usual.

Penn Mutual’s complaint index during the past three years has averaged 0.2, indicating that the company has received unusually few complaints.

Third Party Ratings

AM Best annually releases a list ranking the financial stability of insurance providers in the United States. AM Best has given Penn Mutual its second-highest possible rating of A+.

With such a high rating, it’s clear that the organization can reliably meet its continuing insurance commitments like making claim payments.

Competition

Items Guardian Life Insurance Guardian Life Insurance Mutual of Omaha
Types of Coverage Whole, term, universal, indexed universal, variable universal Whole, term, universal,  variable universal Term, universal, indexed universal, variable universal, final expense
Dividends for 2022 $123 million $1.13 billion Not applicable
Online Application No No Yes, for guaranteed issue whole life
AM Best Rating A+ A++ A+
Price for Term Policies Very good Average Average
NAIC Complaint Index (averaged over 3 years) 0.2 0.693 0.756

Choosing a reliable insurer with the coverage options you need is a top priority when looking for life insurance. Comparing the company to its rivals is also informative.

Policies Available

Most of Penn Mutual’s life insurance products (up to $7.5 million in coverage) are eligible for no-med-exam underwriting.

Term Life Insurance

If you purchase term life insurance and die within a set time frame (15 or 30 years, for example), your dependents will receive a payout. It provides protection at a set monthly charge but has no growth potential. At the end of the specified time, it will no longer be valid. Penn Mutual provides the following options for term insurance:

  • Short-term 10-, 15-, 20-, and 30-year Guaranteed Convertible Term policies provide a bridge to permanent coverage if purchased before age 70 or within the first 20 years of a 30-year term, respectively.
  • Ten, fifteen, twenty, and thirty year terms are available under this protection non-convertible term plan, but there is no option to extend coverage indefinitely. Penn Mutual’s most budget-friendly term coverage options.
  • This insurance renews every year at a higher rate, but it can be converted to any permanent Penn Mutual plan until you turn 84 years old.

Whole Life Insurance

Beneficiaries receive a death payment from a whole life insurance policy when the insured passes away. As long as the premiums are paid, the policy will continue in effect for the life of the insured. Over time, the policy accumulates cash value, which can be borrowed from or cashed out in an emergency. Penn Mutual life insurance policies include the following:

  • Guaranteed Whole Life II: The premiums for the Guaranteed Whole Life II policy are guaranteed to never increase while the death benefit lasts until age 121. You can start a policy at any time between birth and age 85, and if you want to save money in retirement, you can pay off the premiums early. Up to every five years until age 100, payments will be made. A wide variety of optional riders are available for this policy.
  • Survivorship Whole Life: Whole life insurance with survivorship pays out to two beneficiaries, like a married couple or company partners. After one policyholder dies, the coverage goes to the surviving policyholder. It offers a guaranteed death benefit up to the age 121 of the surviving insured, a 10-year payment plan, and the ability to spread out premium payments till the age 100 of the surviving insured.

Universal Life Insurance

Like whole life insurance, universal life (UL) policies are perpetual insurance that can be paid out in the event of the policyholder’s death. It expands at an interest rate set by the insurer, and that rate is frequently capped by contract.

Compared to whole life insurance, UL policies offer more customization options. As long as other requirements are followed, the policyholder can adjust the death benefit and premium payments. However, in order to maintain coverage in later policy years, premium increases may be necessary. Penn Mutual provides the following types of UL insurance:

  • Guaranteed Protection UL: Death benefits are guaranteed to remain in effect until the policyholder reaches age 121, and the plan costs less than similar ones. It also includes the flexibility to switch between payment methods whenever necessary. At issue, you will automatically be covered by an accelerated death benefit in the event of a chronic illness.
  • Protection UL: A less expensive alternative to Guaranteed Protection UL, this policy ensures no coverage gaps up to age 100 and offers affordable premiums and lifetime protection beginning at age 90. The plan allows for premium and death benefit customization, as well as premium skipping and making up in the event of sufficient cash value. An expedited death benefit rider in the event of a chronic sickness is offered at no additional expense.

Variable Life Insurance

The cash value of a variable universal life (VUL) insurance policy can be invested in the stock market through individual “subaccounts,” which function similarly to mutual funds. Since the cash value might decrease if investments do poorly, whole life insurance is the riskiest form of life protection. For this reason, the policy has a higher risk of lapsing than other kinds of permanent coverage.

  • Diversified Advantage Variable Universal Life (VUL): Income building is a possibility thanks to the variable accounts in a Diversified Advantage Variable Universal Life (VUL) policy, and cash value gains can be linked to non-market indexed accounts if desired. This is a one-of-a-kind product since it merges the advantages of VUL and IUL coverage.
  • Protection VUL: Protection Variable Universal Life has a no-lapse guarantee rider at no additional cost, ensuring continuous coverage throughout the policyholder’s lifetime. There are investing opportunities with lower costs. Indexed accounts are not included, unlike the Diversified Advantage VUL.

Indexed Universal Life Insurance (IUL)

Indexed universal life (IUL) insurance policies aim to balance the stability and predictability of traditional UL and whole life policies with the volatility and uncertainty associated with VUL policies. It’s a frequent misunderstanding that the cash value of these plans is placed in a market index fund, like the S&P 500. However, the cash value isn’t invested in anything directly. Instead, gains (but not losses) are credited based on how the underlying index performs.

Penn Mutual provides two types of IUL insurance:

Accumulation Builder Flex IUL: When a universal life policy is linked to a financial indication like a stock price, bond yield, or interest rate, it is called an indexed universal life insurance policy, like Accumulation Builder Flex IUL. Standard & Poor’s 500 index-linked insurance from Penn Mutual. It offers a fixed account in addition to its five indexed account choices, which include a high-capped and an uncapped option. It has a minimum floor of 1% that is guaranteed.

Survivorship Plus Select IUL: Two people can be covered under this policy, and their beneficiaries will receive benefits upon the passing of the second insured person under the Survivorship Plus Select IUL. Both the S&P 500 and the S&P Global Broad Market index serve as benchmarks for this insurance plan. There are five distinct indexed account choices. The guaranteed policy increase under this plan is 1% after the insured reaches age 51 or the 11th year of the policy, whichever comes first. The policy has a base no-lapse period of 20 years and up to 13 optional riders that can further increase its value.

Available Riders

Insurance riders are features added to a policy to increase the scope of coverage. Penn Mutual’s Chronic Illness Accelerated Benefit is one of the few riders that doesn’t cost anything extra on top of the basic insurance premium, although most riders do.

Penn Mutual provides a number of riders.

Guarenteed Increase Option

With Penn Mutual’s guaranteed insurability rider, policyholders can expand their coverage without submitting to a medical underwriting process. You can activate the rider when you turn 22, 25, 28, 31, 34, 37, 40, 43, and 46, or when you get married or have a kid, including through legal adoption. You need to be under 40 to purchase this add-on.

Children’s Term Insurance Rider

Upon the death of a policyholder’s kid, the children’s term insurance rider provides a reward of up to $25,000. Children as young as 17 can be added to a policy, and coverage continues until age 23. No matter how many kids you have, you’ll only be charged once. On the policy anniversary closest to the insured child’s 23rd birthday, the term life insurance policy can be converted to a permanent life insurance policy.

Disability Waiver of Premium Rider

Penn Mutual provides multiple disability premium waiver riders. Each will cancel your monthly payments after four months if you become incapacitated.

Accelerated Death Benefit (Terminal Illness Rider)

Penn Mutual’s terminal illness rider kicks in when a policyholder has been given a prognosis of 12 months or fewer to live due to a terminal disease. The maximum lump sum payment is the lesser of the policy’s face value (what you actually pay for it) and $250,000. This rider is included in some Penn Mutual policies at no extra cost.

Chronic Illness Accelerated Benefit

The chronic illness benefit is similar to but separate from the terminal illness benefit in that it permits policyholders who have been diagnosed with long-term, chronic illnesses to receive a portion of their death benefit while still alive. For at least 90 days, you must have a severe cognitive impairment or be unable to execute at least two ADLs. This feature is built into the majority of Penn Mutual’s permanent policies.

Accidental Death Benefit Rider

The accidental death benefit rider adds a lump sum to the life insurance payout in the event of the insured’s death due to an accident (this is different from an accelerated death benefit). The payout is based on the quantity of coverage and the rider attached to the policy.

Customer Service

You can visit Penn Mutual at any time by going to pennmutual.com. From Monday through Friday at 8:30 a.m., a customer service line (800-523-0650) is open for business. to 6 p.m. It’s 5:00 p.m. Eastern Time right now. Emails sent to [email protected] will be answered promptly by a member of the support staff. Online claim filing and account management is available to policyholders.

Price
Penn Mutual provides competitive prices for term life insurance. In our study of life insurance quotations from 32 providers for men and women in excellent health across three age brackets, they came in at position four for the most cost-effective term coverage overall and in each age bracket. However, it’s worth noting that Penn Mutual’s nonconvertible policies offer the lowest premiums of its two term options. Prices for convertible insurance may be higher.

Penn Mutual is ideal for those who;

If you don’t mind talking to an agent to acquire a price and policy details, Penn Mutual is a good option to explore. It’s great for a large pool of people because it doesn’t require any sort of standardized testing and offers a wide variety of products and policy incentives. Its ultra-high coverage, no-medical-exam life insurance, and long history of dividend payments are particularly impressive.

On the other hand, its term insurance have a lot going for them as well, such as affordable premiums, flexible conversion terms, and the possibility to switch to any permanent coverage.

If you absolutely cannot stand dealing with a firm that does not want to publish policy details or a term quote on its consumer-facing website, you may want to check out our list of the best term life insurance companies to locate the features you want.

Judgment Reached

Since it has been paying dividends for 174 years in a row, we have chosen Penn Mutual Life Insurance Company as the greatest whole life insurance company. If you’re looking for a multimillion-dollar dividend-paying policy and would rather forgo an exam, this firm may be a good fit for you because it offers life insurance products to suit many people’s financial needs, investing goals, and budgets.

FAQs

Policyholders, as opposed to stockholders, own Penn Mutual. According to the accepted definition of “insurance company,” this organization is actually a mutual company. This paves the way for consistent dividend payments to policyholders.
There are several different life insurance plans and riders available from Penn Mutual. There are two basic types, whole life and term. They also provide annuities.
Penn Mutual will accept the return of your insurance at any time. The amount you receive is the net cash surrender value, which is the value of the policy minus any surrender fees. You can also borrow against your policy if you need money in an emergency, which will lessen the amount you will get upon your death.
The NAIC has a service that might help you find your life insurance policy. It’s available for no cost and easy to find online. The NAIC will step in and demand Penn Mutual conduct a records search. Penn Mutual will contact you if there is still an active policy, but you may be required to provide proof of authorization.

Methodology

We ranked over 90 insurers across five broad categories including financial soundness, customer happiness, product and feature variety, the overall buying experience, and cost, using a methodology we developed based on consumer objectives and life insurance firm fundamentals.

We used 55 different indicators and collected over 5,000 data points to accomplish this. We examined insurers’ results across a variety of measures by classifying them into categories and scoring them accordingly.

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