MassMutual is one of the largest life insurance companies in the U.S. The company has a long history and is certainly one of the top companies available. Although not for everyone, MassMutual provides its clients with products and services second to none.
Review of Mass Mutual Life Insurance
If you are looking for a life insurance provider, then perhaps Mass Mutual Life is on your list of possibilities. We have put together a review of Mass Mutual Life Insurance to help you make an informed decision before you apply for your life insurance policy. This review will help you know everything you need know about purchasing an insurance policy with MassMutual. Our primary goal at TermLife2Go is to help life insurance seekers get the best policy for their needs and budget.
Massachusetts Mutual Life Insurance Company is more than a century and a half old. One product Mass Mutual Financial Group offers is life insurance.
MassMutual offers a variety of policies with a lot of flexibility to meet a policy seeker’s specific needs and wants. MassMutual Life Insurance also has a nationwide presence, making them a competitive option no matter where you live.
A.M. Best Company Rating
The most reputable rating agency has given Mass Mutual an A++ rating. This is the top category out of fifteen possible categories. As one of the most trusted authorities on the financial strength of an institution, this rating by A.M. Best speaks volumes about Mass Mutual.
MassMutual has strong ratings by all the top rating agencies:
- A.M. Best rating: A++
- Moody’s rating: Aa2 (Excellent)
- Standard & Poor’s rating: AA+ (Very Strong)
- Fitch Ratings: AA+ (Very Strong)
- Comdex rating: 98
These ratings are subject to change at any time, but having four top agencies consistently rank Mass Mutual as a strong financial institution should build confidence in anyone thinking to apply for a life insurance policy with them.
MassMutual Life Insurance Benefits
Having just celebrated their 160th anniversary, Mass Mutual Life has won the trust of millions, thus withstanding the greatest test of all: time. They’ve understood the varying needs of policyholders and developed flexible systems to meet a variety of needs. At Mass Mutual Life Insurance Company, some policies can build cash value, adding to your financial strength when you may need it the most.
Mass Mutual Insurance also works with corporations and small businesses that would like to offer employee benefit packages. Among other things, this includes life insurance. If you are an employer who cares about your employees, then Mass Mutual is a great option.
Mutual Insurance Company
MassMutual is not publicly traded. The company does not have shareholders. Instead, as a mutual company, Mass Mutual’s primary allegiance is to policy owners. One of the main ways this shows up is through dividends.
Every year MassMutual pays its policyowners a return of premium in the form of dividends. The Company recently approved an estimated $1.6 billion dollar dividend payout for policyowners. Although not guaranteed, MassMutual has paid a dividend to participating policyholders since 1869.
Whole Life Insurance:
This policy offers permanent protection at a fixed rate. You won’t have to worry about premiums increasing over time, and your family will have the financial protection they need. With a whole life insurance policy, your guaranteed value will never decrease, either. So when you decide on amount of coverage, that’s the coverage you’re going to get.
Whole Life Insurance Guarantees:
- Guaranteed Premium
- Guaranteed Death Benefit
- Guaranteed Cash Value Accumulation
- Guaranteed Return
MassMutual offers a lot of life insurance riders. Here are just a handful:
- Term Life Insurance Riders
- Life Insurance Supplemental Rider
- Paid Up Additions Riders
- Supplemental Insurance Amount
- Additional Life Insurance Rider
- Guaranteed Insurability Rider
- The GIO rider is a great option when considering life insurance for kids or your adults. It allows the insured to get additional life insurance without evidence of insurability.
With a MassMutual Whole Life policy, you will be able to build cash value, and you can borrow from this amount via life insurance loans. Suppose you need to:
- Pay for college tuition
- Buy a house
- Supplement your retirement income
- Start up a Business
- Pay off high interest debt
You can do it by borrowing from your whole life insurance policy offered by Mass Mutual. In addition, you may be eligible to earn dividends from the policy.
What you can do with the Dividend
- Lower your following year’s premium payment
- Purchase additional one-year term insurance;
- Leave on deposit to accumulate with interest;
- Repay a policy loan or pay loan interest; or
- Purchase paid-up addition life insurance
MassMutual 2017 Dividends
In November 2016, MassMutual approved an estimated 2017 dividend payout for participating policy owners of $1.6 billion. The 2017 payout reflects a dividend interest rate of 6.7 percent for eligible participating life insurance policies, highest among the company’s mutual competitors.
MassMutual 10 Pay
One of the more popular policies with the infinite banking crowd is MassMutual’s 10 Pay limited pay whole life policy. The advantage of 10 pay whole life is you pay into the policy for 10 years and then no more premiums are due. However, you will have a paid up policy that still accumulates cash value via interest and dividends. Then you can borrow against your policy to pay down debt, buy a home, or invest in passive income ideas. It’s really up to you!
Mass Mutual Guaranteed Acceptance Life Insurance:
Perhaps your primary concern is to make sure that your family is able to pay expenses related to your passing, be it medical bills or funeral costs. If you are looking for a life insurance policy that offers basic coverage such as this, then you might be interested in Guaranteed Acceptance Insurance. This policy offers coverage packages $25,000 and less, and the monthly rate is nominal.
It is called guaranteed acceptance because anyone between 50 and 75 will be covered, even if you have health problems. Suppose you have had a bypass surgery and been denied by other life insurance agencies—you will still qualify for this type of policy. There are many companies offering this type of final expense insurance. To get the best price it is good to know your options.
Term Life Insurance:
Term life insurance is a policy that is valid for a certain period of time, which fixed premiums guaranteed during that time period as well. When you feel you want to transition to a more permanent type of life insurance, then Mass Mutual will allow you to do so. Consider term life insurance for protecting the primary wage earner, protecting a mortgage, covering a small business loan, or to meet the requirements of a divorce settlement.
Universal Life Insurance:
This is a permanent policy that allows you to make changes along the way. Suppose you have a child, or get married—you can adjust your policy accordingly. Your premiums will change with your life circumstances and your desired coverage. This plan is the ultimate flexi-plan. Additionally, if you want to pay a certain premium, you will be able to build account value with this plan. Click the following link for more on the benefits of Universal Life Insurance.
Long Term Care Life Insurance Combination
Long term care life insurance combinations offer a hybrid Life+LTC in one policy. MassMutual’s LTC and life insurance combination policies provide you with tax free income to help you pay long term care costs by providing a benefit pool you can use to reimburse your expenses.
Massmutual’s policy is single premium whole life insurance with a long term care insurance rider.
The policy offers four benefits in one.
- Life insurance death benefit.
- Cash value growth
- Potential dividends
- Reimbursement for long term care costs
- Issue ages 35-69
- Elimination period 90 days
- 4 year minimum initial benefit period
- Additional benefits available through the optional Extended LTC Coverage
- Optional 5% compound growth inflation protection
- Life insurance dividends can be used for
- paid up additions
- dividend accumulations
MassMutual Disability Income Insurance
MassMutual is one of the best long term disability insurance companies available.
Individual long term disability insurance is comprised of certain features such as an elimination period, benefit period, benefit amount, and other various enhancements in the form of riders.
If you need to supplement existing disability insurance or if you are a business owner looking to protect his business, MassMutual is one of the top companies you should consider. Using disability insurance in a buy sell agreement or for key person insurance is critical in creating a comprehensive plan focused on asset protection.
Let’s take a look at one of MassMutual’s disability insurance products called Radius. The policy provides long term disability income insurance protection for ages 18-60.
MassMutual Radius disability income insurance policy snapshot:
- Ages 18-60
- Benefit periods of 2, 5, 10 years, to age 65 and to age 67 available.
- Pays own occupation benefits provided you are not working. Own occupation rider available so that you can receive benefits, even if working in another occupation.
- Non-Cancelable coverage.
- Future Insurability Option.
- Dividends are available for DI policyholders after year 5 (6 in CA).
MassMutual Life Insurance: Disadvantages
Mass Mutual Life does not offer any kind of online quote option. In order to get a quote you must speak directly to a representative. At the time of this review, they did not have a mobile app, either. Though neither of these things will affect how your life insurance policy benefits your loved ones in the end, it is nice when life insurance companies are digitally-equipped. We do not recommend that the absence of a strong digital presence be a major factor for anyone considering taking a life insurance policy—after all, it’s the actual policy that counts.
Another potential disadvantage of Mass Mutual Insurance is the Company’s lack of a viable no medical life insurance option. For some clients, taking an exam is not the best route to take. See our article, exam versus no exam
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