Insurance companies abound, and virtually all of them offer life insurance policies.
Should you bundle with the company that covers your home or car to save on monthly premiums, or would searching out a dedicated life insurance company be the better investment?
Answering this question demands thorough research, so those of us here at Best Life Quote have compiled a complete Penn Mutual Life Insurance review to aid your search.
In this review:
About Penn Mutual
When purchasing life insurance, most people hope it will be decades before their survivors will need it.
So companies with a proven history of excellence encourage customer confidence.
Longevity is one place where Penn Mutual is challenging to beat. The company dates back to 1847 and has been in continual service ever since.
As its name implies, Penn Mutual Life Insurance is a mutual company rather than a publicly-traded one. What difference does this make for you?
Publicly traded companies are accountable to their shareholders rather than their clients when creating policies and making decisions. But mutual companies have a more policyholder- or customer-centered focus.
Emphasis on each customer’s experience rather than stock market success pays figurative and literal dividends for those with policies through this company.
It prioritizes the quality of its policies and services, including customer service, a particular favorite listed in the company’s customer reviews.
Penn Mutual’s Financial Ratings
When researching a life insurance company to trust, its financial capacities are just as important as its customer service.
What good is the best customer service in the world if the company goes bankrupt and cannot pay benefits to its clients?
Independent insurance rating companies exist to provide unbiased reports on the financial health of insurance companies.
To do so, they look at each company’s income and expenses, including potential benefits payments for its clients.
Then they grade them based on the company’s ability to uphold their clients’ policies at any given time.
Penn Mutual has been in business for over 170 years, but even an old and successful business can experience difficulties.
Moody’s, Standard & Poor’s, and A. M. Best, three of the leading independent insurance-rating companies, rate Penn Mutual as strong to very strong.
- A.M Best: A+
- Moody’s: Aa3
- Standard & Poor’s: A+
Penn Mutual Life Insurance Products
Penn Mutual emphasizes the benefits of permanent life, or whole life, policies. However, permanent policies are far from the only type they have to offer.
Penn Mutual offers a variety of term life and universal life policies for its clients as well.
Term Life Insurance
Most think of term life insurance policies when discussions about life insurance come up.
The reason is simple: They are the most affordable, easiest to understand, and most common type of life insurance policy.
Penn Mutual offers three different term life policies.
Clients can select between 10-year, 15-year, or 20-year policies to secure a guaranteed benefit for a lower rate than the same benefit with a permanent policy.
Penn Mutual allows clients to transition part or all of their policies into permanent policies at the end of the term policies.
Permanent Life Insurance
If permanent life insurance policies cost so much more than term policies, why does anyone choose the permanent option?
A couple of reasons exist for why some prefer a permanent policy to term.
The benefits of permanent policies develop over time, so the type that best fits your needs is a matter of your current budget vs. your long-term goals.
Permanent policies keep steady premiums regardless of your age or health. Term policies become more expensive as you age or your health deteriorates.
Investing in a permanent policy early on pays off over time as term premiums match or surpass them later in life.
Permanent policies also gain cash value over time that policyholders can draw upon if needed. Term policies only cover death benefits within their set term.
Penn Mutual offers a few different permanent life policies with different focuses and benefits to each.
They are too complicated to explain fully in this overview, but remember, excellent customer service is one of Penn Mutual’s top benefits.
You can expect to speak with an agent who can further explain the intricacies of different policies when you call.
Universal Life Insurance
Those who want the benefits of a permanent life insurance policy but need a premium closer to those available with term policies can find a compromise with Penn Mutual’s universal plans.
They stay with you throughout your life like permanent plans.
But they also allow policyholders more control over their investment portfolio and greater flexibility in their premiums, benefits, and investments.
The added control and flexibility come at the price of increased involvement on your part.
Because the interest rate on the investment accounts will determine the policy’s cash value, it is possible to earn much more with a universal plan than a permanent or whole life plan.
Penn Mutual offers several universal plans with varying amounts of freedom and investment options, so it is relatively simple to find one to fit your needs.
Penn Mutual Life Insurance Riders
Life insurance riders are underwriting sections that you can add to allow you to customize your policy to your needs. Penn Mutual offers a wide selection of available riders.
The company has basic ones for child and family coverage, and it has more specialized options like accelerated benefits or a disability premium waiver.
Two of Penn Mutual’s top riders are their chronic illness and long-term care riders.
Both allow policyholders to draw part of their death benefit to assist with medical bills and charges related to in-home or nursing home care.
Most new Penn Mutual policies have a chronic illness rider underwritten into them for qualified individuals.
Eligibility and Application Process
New clients have a couple of different options when applying for Penn Mutual coverage.
The company offers its traditional application process, which takes 4 to 6 weeks, and an accelerated application process capable of initiating policies within 24 hours.
Penn Mutual’s traditional process is similar to those that other life insurance companies use.
You take around fifteen minutes to fill out the application, including questions about your health, family history, and personal lifestyle.
Afterward, you schedule a cursory medical exam for inclusion with your application.
Your application and medical results determine your rating class, and therefore, the types of policies and premiums you are eligible to receive.
Penn Mutual’s accelerated application option cuts out the medical exam to expedite the process. It is available to individuals aged 20-65 years with a maximum death benefit of $5 million.
There is talk that this maximum may change in the coming months.
Automated systems rather than agents handle accelerated applications, so they are less customizable.
Is Penn Mutual Life Insurance Best For Your Needs?
In short, Penn Mutual is a strong contender among life insurance providers.
Its status as a mutual company instead of a publicly-traded one keeps its customers as the top priority.
Its range of options, customer service, and the intuitive nature of its online dashboard are exceptional.
Penn Mutual’s financial status and longevity make it a company that individuals can choose with confidence.
However, the company’s website lacks estimate tools.
While understandable given the nature of its services, comparing coverage and rates with other companies is a bit more time-consuming, as a result.
Penn Mutual Life Insurance
- A.M Best: A+
- Moody’s: Aa3
- Standard & Poor’s: A+