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Penn Mutual Life Insurance Review: Top Rates and Policies
May 22, 2018
In order to equip our clients with the knowledge to help them choose the best insurance carrier out there, we have written this life insurance review about one company that stands out, Penn Mutual Insurance Company. Penn Mutual offers insurance options for both individuals, families and small businesses.
About Penn Mutual
Penn Mutual was established in 1847 and strives to create a world of possibilities, one individual, one family and one small business at a time. They create solutions which deliver the complete value of life insurance across all life's stages and are further complemented by annuities and investment products.
Penn Mutual is a mutual company. A mutual company focuses on delivering results to its policyholders, and not to shareholders. As a result, policyholders take part in the success of the company through annual dividends paid out on specified products.
Penn Mutual Ratings
A.M. Best (Effective March 2016)
A.M. Best rating: A+ (Superior) due to the company's:
- Strong risk-adjusting and absolute capitalization
- Diversification of business profiles within core product lines
- Well-establishment and focus on growth strategy
- Strong commitment to maintaining mutuality
Moody's Investors Service (Effective October 2016)
Moody's rating: Aa3 (Excellent)
- Exceptional capitalization
- Stability of earnings
- Very strong asset quality and liquidity
BBB Review (Effective December 2016)
Penn Mutual’s BBB review attributes of A+ (Stable), is due to the following factors:
- Very strong financial risk profile
- Very strong capital adequacy
- Strong business profile
Comdex Life Insurer Financial Profile
Penn Mutual boasts an impressive 92 Comdex ranking. This ranking clearly affirms the company’s financial strength. When considering a long term carrier, having a strong rating is a critical component to observe and consider.
Life Insurance Products
In Life insurance products, Penn Mutual provides the two basic types of Insurance products: term life (similar to renting) and permanent life (owned). For more, please read the differences between term and whole life insurance.
Term Life Insurance
Penn Mutual Term Life Insurance policy is designed to offer you peace of mind by providing a guaranteed death benefit, flexibility to convert to permanent coverage and affordable premiums for 10, 15 or 20 years. One advantage of purchasing term life through Penn Mutual is the policy can later be converted to one of Penn Mutual's superior permanent insurance products.
Permanent Life Insurance
Penn Mutual Permanent Life Insurance products are designed to offer protection while building cash value. Borrowing from the cash value can provide you with the opportunity to meet your future goals. Please also visit our article which points out the many benefits of cash value life insurance.
Whole Life Insurance: Penn Mutual's Guaranteed Choice Whole Life comes with some awesome guarantees, including:
- Guaranteed Death Benefit
- Guaranteed Cash Value Accumulation
- Guaranteed Level Premium
- 4% Minimum Guaranteed Interest
- Policy Can Earn Dividends
Available Life Insurance Riders:
- Accelerated Death Benefit
- Paid Up Additions
- Disability Waiver of Premium
- Guaranteed Purchase Option
- Chronic Illness
- Children's Term Insurance
Universal Life: Permanent coverage with flexible payments.
Indexed Universal Life: Performance is tied to an index, such as the S&P 500. For more on IULs, please visiting our article covering the pros and cons of indexed universal life.
Variable Universal Life: Variable life products provide greater risk/reward on the cash value because it is invested in the stock market.
Annuities: Annuities, on the other hand, are investment options that are designed to grow funds and then later provide a stream of payments to the investor. In relation to a financial plan, they are commonly used as a way to secure a retirement steady cash flow. Penn Mutual offers a number of annuities options, structured in ways to suit your specific needs:
Immediate Annuities: Purchased with a single payment, and provides an income stream immediately. This income stream, however, is determined by the initial principle amount, the length of time the payout continues, and the number of lives covered by the annuity.
Fixed Annuities: These are simple, low-risk retirement planning that protects your principal and allows your investment to grow with time. Your retirement savings become credited with interest at an unchanging stated rate. Your savings can then receive the credited interest until you decide to receive a stream of payments.
Variable Annuities: These offer a wide array of investment options allowing you to customize your investment strategy, in order to successfully meet your needs and risk tolerance. In addition, variable annuities provide protection options, safeguarding against inflation and market volatility. Thus, a variable annuity is a long-term financial retirement option that offers the highest growth potential. However, it is subject to market fluctuations and may lose value.
Customer Service
Penn Mutual array of customer services enables ease of access and use by the policyholders. They include:
Management of your Account
Penn Mutual offers online account access through the Client Service Center, here you can review account status and make changes to your account, retrieve copies of your statement and more. In addition, there is the Beneficiary Account, which is draft account similar to an interest-bearing checking account.
Billing & Payment Options
Penn Mutual is dedicated to offering you flexible payment options. You can make payments through mail or automatic billing through credit cards. In addition, in this section, they offer you answers to questions about billings and payments.
Tax Planning
Penn Mutual provides answers to tax questions and access to the following tax forms.
- 1099INT
- 1099R
- 5498
- W-9 Tax ID/Certification
FAQs
Penn Mutual FAQ’s section details answers to account-related questions and more.
Potential drawbacks
Penn Mutual is a top insurance life insurance carrier. However, it is but one of many companies available. Penn Mutual may be the best choice for you, but you may be better served with a different company. Some of the factors to consider would be your ideal product and your health history.
Advice
In our view, Penn Mutual is one of the premier choices in the life insurance marketplace. If the product type fits your need you will be hard pressed to find a better carrier. The key though is to have options.
Conclusion
Penn Mutual is a highly rated company with an excellent track record of delivering on its promises. There is little doubt that Penn Mutual is one of the best companies in the industry. If you think Penn Mutual might be the right fit for you, give us a call today for a free life insurance consultation.
So, what are you waiting for? Give us a call today or visit our Term Life Insurance Quotes page and see what we can do for you!
