Beginning in 1904, Mutual Trust Life Insurance Company has both grown and expanded significantly.
With more than 110 years in the business, this company offers its annuity and life insurance products in 49 U.S. states, including the District of Columbia.
Oak Brook, Illinois is the headquarters for Mutual Trust. Presently, the life insurance company is owned by parent group, Pan American Life Insurance Group (PALIG), which is the leading supplier of financial and insurance services throughout the U.S..
In This Mutual Trust Life Insurance Review:
About Mutual Trust Life
As implied by the name, Mutual Trust is a mutual insurance provider.
What this means is that the insurer thrives for the benefit of its policyholders, rather than for the benefit of shareholders.
Although it’s not guaranteed, receiving dividends from the company might be a possibility for policyholders.
Dividends received may be used for either increasing the policyholders’ current amount of life insurance coverage or may be received in the form of cash.
Financial Ratings of Mutual Trust Life
High ratings from insurance rating agencies suggest a company’s financial stability and strength.
Currently, Mutual Trust possesses an “A” (stable) rating from Fitch and an “A” (Excellent) rating from A.M. Best.
Although Mutual Trust Life Insurance Company is not currently endorsed by the Better Business Bureau (BBB), the provider has been awarded an “A+” rating, which is based on an A+ to F rating scale.
Due to the company’s impressive product line, Mutual Trust has only received one customer complaint within the past three years.
Mutual Trust Term Life Insurance
Mutual Trust Life Insurance Company offers a wide variety of policies to choose from, such as term life and permanent life insurance coverage.
What’s the difference between term and whole life?
Well, primarily the main differences are that term life insurance provides a simple death benefit with no cash value feature and is more affordable than permanent life insurance policies.
The following will give an overview of these forms of coverage:
SelecTerm Life Insurance
The term product that Mutual Life offers its clients is known as SelecTerm, with term periods of 10, 15, 20, and 30-year terms.
This policy covers the insured for a specified number of years and the premium remains level throughout the term of the policy. The death benefit amount of this policy is also guaranteed.
SelecTerm Features:
- SelecTerm is renewable annually to age 98
- Guaranteed level premiums
- Riders – Accelerated Death Benefit, Waiver of Premium, Children’s Insurance Rider
- Convertible to any Mutual Trust Whole Life Policy
Once the policy reaches the end of its term, in order for coverage to be lost, the policyholder will be provided the option of an annually renewable policy.
The death benefit will remain the same until the insured reaches the age of 98, but the premium will increase every year. Fortunately, as with most term life policies, SelecTerm can be converted into permanent life insurance coverage without having to prove insurability.
Mutual Trust Whole Life Insurance
Mutual Trust Life Insurance presently offers four traditional whole life insurance plans, which guarantees that both the death benefit and premium amount will remain the same. Cash value growth and possible dividend distribution are also available with the company’s whole life policy.
Thankfully, the cash value component of this policy has the ability to increase on a tax-deferred basis. In fact, no tax will be due on any increase of funds, unless those funds are withdrawn.
Mutual Trust Horizon Value™
Mutual Trust’s leading whole life insurance policy, Horizon Value, provides guaranteed, quick, tax-deferred cash value accumulation. Most often by the fourth year, the cash value will surpass the policy’s annual premium.
Policyholders have the ability to access their funds by way of policy withdrawals and loans. Additionally, Mutual Trust Horizon Value™ offers a guaranteed death benefit and guaranteed level premiums.
The accelerated death benefit rider is suitable for terminal and chronic illness, and is available at no cost.
Horizon Value Highlights
- Horizon is a participating policy so expect dividends to be paid each year that can be used to purchase paid-up additions, applied toward future premiums, or taken as cash.
- Premiums are payable to age 90
- Eligible issue ages up to age 75
- Face amounts start at $10,000 and go as high as underwriting allows
- Ten optional riders are available that include the accelerated death benefit for chronic and terminal illness
- Accelerated Death Benefit
- Accidental Death Benefit
- Waiver of Premium
- Children’s Insurance Rider
- Disability Benefit Rider
- Guaranteed Purchase Option
- Single-Premium Paid-Up Additions Rider
- 10-year Term Rider
- Waiver of Premium for 2 and 5 year Own Occupation Disability
Mutual Trust Horizon Blend
The Mutual Trust Horizon Blend is a 50/50 mix of dividend-paying term and whole life insurance. Due to its combination, the premium is lower than that of other whole life insurance policies.
This life insurance policy provides cash value accumulation for 20 years and a guaranteed death benefit. During or after the 20-year term, the policy can be converted either partially or entirely.
Horizon Blend Highlights
- Blended Whole Life and Term Insurance resulting in lower premium outlay
- Guaranteed cash accumulation and non-guaranteed dividends
- The term portion of coverage can be converted to permanent coverage
- Periodic premiums payable to age 121
- Issue ages are 18 to 65-years old
- Available face amounts are $100,000 to amount approved by underwriting
- Nine optional riders are available that include the accelerated death benefit for chronic and terminal illness
- Accelerated Death Benefit
- Accidental Death Benefit
- Flex Pay Paid-Up Additions Rider
- Children’s Insurance Rider
- Disability Benefit Rider
- Guaranteed Purchase Addition
- Single-Premium Paid-Up Additions Rider
- Waiver of Premium for 2 and 5-year Own Occupation Disability
Mutual Trust Horizon Guarantee
This policy from Mutual Trust, also a whole life insurance policy, provides both a guaranteed level premium and guaranteed death benefit.
Often costing less than other whole life insurance policies, the Horizon Guarantee offers guaranteed cash value accumulation.
As with the before mentioned policy, Horizon Guarantee also offers an accelerated death benefit rider to cover chronic or terminal illness.
Horizon Guarantee Highlights
- Participating whole life insurance that earns non-guaranteed dividends annually
- Guaranteed death benefit to age 121
- Guaranteed cash value growth plus non-guaranteed dividends
- Premiums are payable to age 121
- Eligible issue ages are 0 to 85-years old
- Face amounts range from $50,000 up to the amount approved by underwriting
- Ten optional riders are available that include the accelerated death benefit for chronic and terminal illness
- Accidental Death Benefit
- Accelerated Death Benefit
- Waiver of Premium
- Children’s Insurance Rider
- Disability Benefit Rider
- Guaranteed Purchase Option
- Single-Premium Paid-Up Additions Rider
- 10-Year Term Rider
- Waiver of Premium for 2 and 5 Year Own Occupation Disability
Mutual Trust Legacy One
The Mutual Trust Legacy One policy form of whole life insurance coverage with a single premium.
Mostly used as a transfer of wealth, this policy allows policyholders to max out the amount left to their beneficiaries.
Furthermore, since there are no surrender charges, there’s an ability to maintain control over your money.
This policy has a guaranteed interest rate of 4% and the cash value component increases with any participating dividends.
When it comes to wealth transfer, fixed annuities and traditional savings accounts just don’t compare with Mutual Trust’s Legacy One policy.
Legacy Highlights
- Participating whole life insurance that earns non-guaranteed dividends
- Tax-deferred wealth accumulation
- Single premium to issue the policy
- Eligible issue ages are 0 to 85
- The minimum death benefit is $5,000 with the maximum subject to underwriting
- Accelerated Death Benefit if the insured is diagnosed with a Chronic or Terminal Illness.
