Penn Mutual Life Insurance Review
Penn Mutual Life Insurance Company has a long history of providing quality insurance products to its customers. With favorable underwriting criteria for both medical and non-medical risks, Penn Mutual is a top performer in the industry. Its strong financial ratings, competitive pricing, and excellent customer service make it a great choice for those seeking life insurance coverage.
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FSR: Excellent
No-Exam Option? Yes
Customer Service: Great
Policy Options: Whole Life, Term, Universal Life
Life insurance is a crucial financial tool that provides peace of mind and financial security to loved ones in the event of an unexpected death. But with so many life insurance providers available, selecting the right one can be a daunting task. Penn Mutual Life Insurance is a company that has been providing life insurance for over 175 years and has established itself as a reputable and trustworthy provider. In this review, we will provide an in-depth analysis of Penn Mutual, including its history, product offerings, underwriting guidelines, customer service, and more. This review aims to help you make an informed decision about whether Penn Mutual is the right choice for your life insurance needs.
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How Penn Mutual Got Its Start
Penn Mutual Life Insurance Company is a mutual company, which means it is owned by its policyholders instead of shareholders. This allows Penn Mutual to operate with a long-term view, focusing on the needs of its policyholders rather than the demands of investors. As a mutual company, Penn Mutual can also offer certain benefits to its policyholders, such as the ability to receive dividends based on the company’s financial performance.
The insurer has a rich and storied history that spans over 175 years. The company was founded in 1847 in Philadelphia, Pennsylvania, by a group of Quakers who wanted to create a mutual life insurance company that would operate on the principles of fairness, integrity, and community. In its early years, Penn Mutual was a small operation, with policies sold primarily to members of the Quaker community. However, the company quickly grew in popularity, and by the end of the 19th century, it had expanded beyond its original roots to become a nationally recognized provider of life insurance.
In 1915, Penn Mutual reached a significant milestone when it surpassed $1 billion of life insurance in force, making it one of the largest mutual life insurance companies in the United States at the time. The company continued to thrive in the following decades, weathering both World Wars and the Great Depression. In the 1960s, Penn Mutual became one of the first insurance companies to introduce a universal life insurance product, which offered policyholders the flexibility to adjust their premiums and death benefits over time. This innovation helped to solidify Penn Mutual’s position as a leader in the life insurance industry.
Throughout the 20th century and into the 21st, Penn Mutual continued to grow and evolve, expanding its product offerings to include annuities, investment products, and other financial services. Today, the company is headquartered in Horsham, Pennsylvania, and has more than 3,000 employees and financial professionals serving customers across the United States. Despite its many changes over the years, Penn Mutual remains committed to its founding principles of fairness, integrity, and community. With a long history of financial strength and a focus on providing quality products and services to its customers, Penn Mutual is well-positioned to continue serving the life insurance and financial needs of Americans for many years to come.
| Penn Mutual Insurance Company | ||
|---|---|---|
| A.M. Best | A+ | 90th percentile |
| Fitch Ratings | AA- | 90th precentile |
| Moody’s | Aa3 | 90th percentile |
| Standard & Poor’s | A+ | 90th percentile |
| Comdex | 93 | 90th percentile |
Penn Mutual Products
Penn Mutual Life Insurance Company offers a range of life insurance products to meet the diverse needs of its customers. These products can be broadly categorized into three main types: term life insurance, universal life insurance, and whole life insurance.
Penn Mutual’s Term Options
Term life insurance provides coverage for a specific period of time, typically 10, 20, or 30 years. Penn Mutual offers term life insurance policies that provide coverage for up to 30 years, with premiums that remain level throughout the policy term. This type of policy is ideal for those who need coverage for a specific period of time, such as to provide for dependents until they become financially independent or to pay off a mortgage.
| Product Name | Protection Non-Convertible Term | Guaranteed Convertible Term |
|---|---|---|
| Type | Level Premium Term Life Insurance | Level Premium, Convertible Term Life Insurance |
| Features | – 10. 15. 20. 30 year term options. | – 10, 15, 20, 30 year term options. – Eligible for full or partial conversion at any time up to the insured’s 70th birthday. – Conversion credit applied towards first year premium for a converted policy. |
| Issue Ages | – 10 year: 20-70 – 15 year: 20-65 – 20 year: 20-65 – 30 year: 20-55 (non-tobacco users); 20-50 (tobacco users) | – 10 year: 20-69 – 15 year: 20-65 – 20 year: 20-65 – 30 year: 20-55 (non-tobacco users); 20-50 (tobacco users) |
| Minimum Face Amount | $250,000 | |
| Underwriting Risk Classes | Preferred Plus Non-Tobacco (NT) Preferred (NT) Select (NT) Standard (NT) Preferred Tobacco Standard Tobacco |
|
| Optional Benefits | – Accelerated Death Benefit – Children’s Level Term Insurance – Disability Waiver of Premium | – Accelerated Death Benefit – Children’s Level Term Insurance – Disability Waiver of Premium (for term & conversion) – Chronic Illness Accelerated Benefit (upon conversion) |
Penn Mutual’s Universal Life Options
Universal life insurance is a flexible policy that provides both a death benefit and a cash value component. The policyholder can adjust the premium payments and death benefit amount over time to fit their changing needs. Penn Mutual offers two types of universal life insurance: indexed universal life and variable universal life. Indexed universal life policies provide the opportunity to earn interest based on the performance of a stock market index, while variable universal life policies allow the policyholder to invest in sub-accounts that are similar to mutual funds.
| Product Name | Accumulation Indexed Universal Life | Survivorship Indexed Universal Life | Diversified Advantage Variable Universal Life | Protection Variable Universal Life | Guaranteed Protection Universal Life |
|---|---|---|---|---|---|
| Type | No-Lapse Guarantee & Market Evolving Universal Life Insurance | No-Lapse Guarantee Partnership Universal Life Insurance | 20-Year No-Lapse Guarantee & Growth Focused Universal Life Insurance | Lifetime No-Lapse Guarantee Investment Option Universal Life Insurance | No-Lapse Guarantee Universal Life Insurance |
| Features | – Flexible premiums – Options for periodic benefit increases. – Cash value accumulation via indexed, fixed, & dependent care accounts. – Policy value enhancement automatically included. | – Flexible premiums – Fixed & Indexed cash value options. – Policy value enhancement automatically included. – No-lapse guarantee based on the younger insured. (Up to age 121 for Plus Select) | – Flexible premiums – A suite of customizable account options. – Policy value enhancement begins at insured’s age 35. | – Flexible premiums – Automatic asset rebalancing – Cash value accumulation options | – Flexible premiums – Age 100 or lifetime no-lapse guarantee options. – Supports estate liquidity needs |
| Issue Ages | 0-85 | 20-85 (combined ages cannot exceed 165 years; maximum age difference is 30 years) | 0-85 | 0-85 | 0-85 |
| Minimum Face Amount | 0-70: $50,000 71+: $100,000 | $200,000 | 0-70: $50,000 71+: $100,000 | 0-70: $50,000 71+: $100,000 | 0-55: $50,000 56+: $100,000 |
| Minimum Withdrawal Amount | $250 | $250 | $250 | $250 | $250 |
| Underwriting Risk Classes | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco |
| Included Benefits | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Supplemental Exchange | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Policy Split Option – Supplemental Exchange | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Supplemental Exchange | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – No-Lapse Guarantee | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Supplemental Exchange |
| Optional Benefits | Accidental Death Benefit; Additional Insured Term Insurance; Children’s Term Insurance; Disability Completion Benefit; Disability Waiver of Monthly Deductions; Early Surrender Value; Guaranteed Increase Option; Overloan Protection Benefit; Supplemental Term Insurance; Surrender Benefit Enhancement | Early Surrender Value; Estate Growth Benefit; Estate Preservation Term Insurance; Overloan Protection Benefit; Supplemental Term Insurance; Surrender Benefit Enhancement | Accidental Death Benefit; Additional Insured Term Insurance; Cash Value Enhancement; Children’s Term Insurance; Disability Completion Benefit; Disability Waiver of Monthly Deductions; Guaranteed Increase Option; Overloan Protection Benefit; Supplemental Term Insurance; Waiver of Surrender Charges | Accidental Death Benefit; Children’s Term Insurance; Disability Waiver of Monthly Deductions | Accidental Death Benefit; Additional Insured Term Insurance; Children’s Term Insurance; Disability Completion Benefit; Guaranteed Increase Option |
| Surrender Charge | 1st 9 years. 9 years after an increase. 1st 5 years after a reduction. | 1st 15* years. 15* years after an increase. 1st 5 years after a reduction. *9 years for Plus Select | 1st 9 years. 9 years after an increase. 1st 5 years after a reduction. | 1st 15 years. 1st 5 year after a reduction. | 1st 19* years. 19* years after an increase. 1st 5 years after a reduction. *15 years for a no-lapse guarantee up to age 100 |
Penn Mutual’s Whole Life Options
Whole life insurance provides lifetime coverage with a guaranteed death benefit and a cash value component that grows over time. Penn Mutual offers several types of whole life insurance, including traditional whole life, single premium whole life, and survivorship whole life. Traditional whole life policies provide a guaranteed death benefit and level premiums throughout the life of the policy. Single premium whole life policies allow the policyholder to make a lump sum payment for coverage that lasts a lifetime, while survivorship whole life policies provide coverage for two individuals and pay out a death benefit after both have passed away.
| Product Name | Protection Whole Life | Guaranteed Whole Life II | Survivorship Whole Life |
|---|---|---|---|
| Type | Permanent Life Insurance | Flexible Permanent Life Insurance | Flexible Permanent Partnership Life Insurance |
| Features | – Guaranteed cash value growth. – Fixed premiums. – Guaranteed lifetime death benefit (age 121). – No withdrawal minimum or fees. | – Fixed premiums. – Custom policy payment durations up to age 100. – Included term blend rider for affordability in the early years. – No withdrawal minimum or fees. – Guaranteed cash value growth & lifetime death benefit. | – Fixed premiums. – Flexible payment options. – Guaranteed cash value growth. – No withdrawal minimum or fees. |
| Issue Ages | 0-85 | 0-85 | 20-85 (if paid up to age 100) 20-75 (if choosing 10-year payment duration) Combined ages cannot exceed 165 years. Maximum age difference is 30 years. |
| Minimum Face Amount | 0-70: $50,000 71+: $100,000 | 0-70: $50,000 71+: $100,000 | $200,000 |
| Underwriting Risk Classes | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco Standard Juvenile (under age 20) | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco Standard Juvenile (under age 20) | Preferred Plus Non-Tobacco (NT) Preferred (NT) Standard (NT) Preferred Tobacco Standard Tobacco |
| Included Benfits | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Supplemental Exchange | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Supplemental Exchange | – Accelerated Death Benefit – Chronic Illness Accelerated Benefit – Policy Split Option – Supplemental Exchange |
| Optional Benefits | Accidental Death Benefit; Children’s Term Insurance; Disability Waiver of Premium; Enhanced Disability Waiver of Premium; Enhanced Permanent Paid-Up Additions; Guaranteed Purchase Option | Accelerated Permanent Paid-Up Additions; Accidental Death Benefit; Children’s Term Insurance; Disability Waiver of Premium; Enhanced Disability Waiver of Premium; Enhanced Permanent Paid-Up Additions; Flexible Protection; Guaranteed Purchase Options; Overloan Protection Benefit; Surrender Value Enhancement | Enhanced Permanent Paid-Up Additions; Estate Preservation Term Insurance; Overloan Protection Benefit |
In addition to these core life insurance products, Penn Mutual also offers a range of riders that can be added to policies to provide additional benefits. These riders include accidental death benefit, child term rider, long-term care rider, and waiver of premium rider. Each rider is designed to address a specific need or concern and can be added to policies to customize coverage. Overall, Penn Mutual’s life insurance product offerings are comprehensive and flexible, providing customers with a range of options to meet their unique needs.
Penn Mutual’s Underwriting Specialties
Penn Mutual Life Insurance Company has developed a reputation for underwriting insurance policies for applicants with unique health, lifestyle, and financial needs. The company’s underwriting team takes a comprehensive approach to assess risk and provide coverage options for applicants that may be considered high-risk or challenging to insure by other carriers.
Build Criteria
Penn Mutual Life Insurance Company takes various factors into account when underwriting an individual’s life insurance policy. One of the key factors is the applicant’s build, which refers to their height and weight. However, Penn Mutual does have some exceptions to its build charts, such as for individuals who are exceptionally muscular or have a large bone structure.
| Permanent Insurance | Preferred Plus | Preferred | Standard | |
|---|---|---|---|---|
| Term Insurance | Excellent Health Class: Preferred Plus | Great Health Class: Preferred | Average Health Class: Select | Standard Health Class: Standard |
| 4’8″ | 125 | 136 | 141 | 162 |
| 4’9″ | 129 | 139 | 146 | 168 |
| 4’10” | 134 | 143 | 151 | 174 |
| 4’11” | 138 | 148 | 156 | 180 |
| 5’0″ | 143 | 153 | 161 | 188 |
| 5’1″ | 148 | 158 | 167 | 193 |
| 5’2″ | 153 | 164 | 172 | 199 |
| 5’3″ | 158 | 169 | 178 | 208 |
| 5’4″ | 163 | 174 | 184 | 212 |
| 5’5″ | 168 | 180 | 189 | 219 |
| 5’6″ | 173 | 186 | 195 | 228 |
| 5’7″ | 178 | 191 | 201 | 233 |
| 5’8″ | 184 | 197 | 207 | 240 |
| 5’9″ | 189 | 203 | 213 | 247 |
| 5’10” | 195 | 209 | 220 | 254 |
| 5’11” | 200 | 215 | 226 | 261 |
| 6’0″ | 206 | 221 | 232 | 269 |
| 6’1″ | 212 | 227 | 239 | 278 |
| 6’2″ | 218 | 233 | 245 | 284 |
| 6’3″ | 224 | 240 | 252 | 292 |
| 6’4″ | 230 | 246 | 259 | 299 |
| 6’5″ | 235 | 253 | 266 | 307 |
| 6’6″ | 241 | 259 | 273 | 316 |
In addition to the build charts, Penn Mutual also considers an individual’s overall health and medical history when making underwriting decisions. This includes factors such as pre-existing conditions, family medical history, and lifestyle choices like smoking or drinking.
Health Criteria
Penn Mutual’s medical underwriting niche includes policies for individuals with pre-existing medical conditions, such as diabetes or heart disease, as well as those with a history of tobacco use. Penn Mutual Life Insurance Company is known for its flexible underwriting standards and ability to insure individuals with various medical histories. The company has favorable medical underwriting risks for individuals who have well-managed health conditions such as high blood pressure, high cholesterol, and well-controlled diabetes. Penn Mutual also offers policies for individuals who have a history of cancer, heart disease, or other major health issues. The insurer a team of experienced underwriters who carefully evaluate each individual’s health profile to determine the best coverage options and rates.
In addition, Penn Mutual offers policies that require minimal or no medical underwriting. These policies can be a great option for individuals who are unable or unwilling to undergo a medical exam or who have pre-existing medical conditions that may make them ineligible for traditional life insurance policies. Overall, Penn Mutual’s favorable medical underwriting risks make it an attractive option for individuals who may have difficulty obtaining life insurance coverage from other companies.
Lifestyle
Penn Mutual Life Insurance Company has favorable underwriting considerations for non-medical risks, including lifestyle and occupational risks. These non-medical factors can play an important role in determining an applicant’s insurability and premium rates. The company’s underwriting team treats applicants favorably with occupations that may be considered risky, such as pilots or scuba divers, and those with foreign travel requirements.
For lifestyle risks, Penn Mutual takes into account an applicant’s hobbies and activities, such as skydiving or scuba diving, and may adjust the underwriting criteria accordingly. For occupational risks, Penn Mutual considers the hazards associated with an applicant’s profession, such as working in law enforcement or as a firefighter.
How Much Does A Penn Mutual Policy Cost?
Penn Mutual Life Insurance Company offers competitive pricing for its life insurance policies. The cost of insurance varies depending on factors such as age, gender, health status, occupation, and the coverage amount. Penn Mutual’s term life insurance policies tend to be the most affordable option, providing a death benefit for a specific term length. The cost of these policies typically increases as the policyholder ages or if they have any underlying health conditions. The company’s universal life insurance policies offer more flexibility and long-term coverage, with premiums that can be adjusted as needed. The cost of these policies varies based on the policyholder’s age, health, and lifestyle factors. Meanwhile, whole life insurance policies from Penn Mutual offer lifelong coverage and guaranteed cash value accumulation. These policies tend to have higher premiums than term or universal life insurance policies due to their added benefits.
Penn Mutual offers a variety of riders that can be added to a policy for an additional cost, such as accidental death benefit riders, long-term care riders, and waiver of premium riders. These riders can provide additional coverage and financial protection for policyholders and their families, but they will also increase the overall cost of the policy. Overall, Penn Mutual offers competitive pricing for its life insurance policies, with costs varying depending on the policyholder’s individual factors and coverage needs.
COST CHART
Penn Mutual’s Application Process
The Penn Mutual Life Insurance Company offers a variety of application options to fit the needs of its customers. One option is the traditional underwriting process, which involves a thorough medical exam and a review of medical records. This process typically takes several weeks to complete. Another option is accelerated underwriting, which uses technology to expedite the underwriting process. This option allows applicants to skip the medical exam and receive a decision on their application in a matter of days.
Penn Mutual also offers modified underwriting for applicants who may have some health concerns but still want coverage. This option may involve higher premiums or reduced coverage amounts. Overall, Penn Mutual provides flexible application options to meet the needs of its customers, whether they prefer a traditional approach or a more streamlined process.
Penn Mutual’s Customer Satisfaction
The Penn Mutual Life Insurance Company has a strong reputation for customer satisfaction, with an above-average score on the National Association of Insurance Commissioners (NAIC) complaint index. This index measures the number of complaints that customers have filed against an insurer relative to its size, and Penn Mutual consistently scores well below the industry average. This suggests that Penn Mutual has a strong track record of meeting the needs of its policyholders and resolving any issues that may arise in a timely and effective manner. Overall, this is a positive reflection of Penn Mutual’s commitment to providing excellent customer service.
| Penn Mutual Life Insurance Company | |
|---|---|
| Pros | Cons |
| Flexible Policy Options | Limited Term Options |
| Excellent Customer Service | Higher Premiums Than Competitors |
| Strong Financial History | Limited Self-Service Options |
| Accelerated Digital Underwriting | |
Why Should You Use Penn Mutual?
There are several reasons why someone might choose to use The Penn Mutual Life Insurance Company for their life insurance needs. Firstly, Penn Mutual has a long history of financial stability and strength, with high ratings from major financial rating agencies such as A.M. Best and Standard & Poor’s. This gives policyholders peace of mind knowing that their policy is backed by a financially sound company. Secondly, Penn Mutual offers a variety of customizable life insurance options, including term, universal, and whole life policies, allowing individuals to select the coverage that best fits their unique needs and budget.
Additionally, Penn Mutual has favorable underwriting considerations for both medical and non-medical risks, which means that even individuals with pre-existing conditions or unique circumstances may still be able to qualify for coverage. Penn Mutual also offers a variety of riders, such as accidental death and dismemberment, long-term care, and disability income, allowing policyholders to customize their coverage further to meet their specific needs. Finally, Penn Mutual has a strong reputation for customer service, with high ratings from the National Association of Insurance Commissioners (NAIC) in customer complaint ratios. Overall, if you are looking for a financially stable company with customizable coverage options, favorable underwriting considerations, and strong customer service, Penn Mutual may be an excellent choice for your life insurance needs.
