Updated: June 1st, 2020

LEGAL: We are not MassMutual Agents, this is third party review.

You cannot go wrong with MassMutual Whole Life Insurance. They constantly rank among the best in price, cash value, strength...

Top Whole Life

Overview

MassMutual is a Fortune 100 Company with very high-quality ratings and a long history of performance. They have been around since 1851 and have never missed a dividend payment.

MassMutual is one of the 3 big mutual companies that remain from the old days.

They are committed to a small product base, and in particular to their best selling whole life insurance.

MassMutual Whole Life Insurance Review 

You cannot go wrong with a MassMutual whole life.

MassMutual has the #1 selling whole life products in the industry. In 2018 they reached $678 million in whole life sales.

The company continues this pace in 2019 with $607 million is whole life sales. 

In most of our rankings (Price, Cash Value Growth, Income at Retirement) MassMutual constantly ranks either #1 or #2. Their whole life product is the winner among the competition in so many areas, that you will be very happy with their whole life. 

Company Strength 

Financial ratings are one of the most important metrics you need to use when picking a life insurance company.

MassMutual has fantastic ratings throughout:

  •  A.M. Best Company: A++ (Superior; Top category of 15)
  •  Fitch Ratings: AA+ (Very Strong; second category of 21)
  •  Moody’s Investors Service: Aa3 (Excellent; third category of 21)
  •  Standard & Poor’s: AA+ (Very Strong, second category of 21)
  • Weiss A- (Safety Rating)

These are fantastic ratings that can rival any company out there.

Also, MassMutual again is recognized as the World’s Most Ethical Company by the Ethisphere Institute. Check out the full press release here.

One of Americas Larges Companies

It is important to work with a strong financial company. Also, the larger they are, the more likely they are to be there when you need your life insurance. Massmutual is making continual strides to be the best in the industry. They provide solid products backed by a company that is open-minded to change and improvement. Back in 2017 MassMutual ranked 93 on the Fortune 500 list.

MassMutual Whole Life Review

Today MassMutual sits in position 84.

MassMutual Fortune 500

MassMutual has made some major moves since 2018 as noted by fortune 500.

  • The Company sold its OppenheimerFunds to Invesco for $5.7 billion
  • MassMutual Asia was sold off for $1 billion cash and 800 million shares of buyer Yunfeng Financial Group
  • In addition, 85.1 percent of MassMutual Japan was also sold for approximately $955 billion
  • These movements resulted in a 17.2% jump in revenues.

MassMutual Highlights

MassMutual Whole Life Review

You may not be familiar with some of these highlights, but they are very impressive:

  1. Total Revenue in 2019: $30 Billion
  2. The company sold $607 million of whole life in 2019
  3. Assets increased by 10 percent. This brings MassMutual to nearly $280 billion.
  4. Surplus and capital saw increases of 21 and 23 percent
  5. Revenue hit a record high in 2019 at $32.6B
  6. The 209 Dividend of $1.7B to policyowners exceeded $1.5B for a sixth consecutive year.
  7. $500M+: Both net gains from operations and net income were strong, reflecting business growth and operational efficiencies.

You can review MassMutuals full report here

Summary of Financial Position

MassMutual Summary of Financial PositionSummary of Operations

MassMutual Summary of OperationsDividend

Participating companies pay a dividend on top of their guaranteed rate of return.

These dividends are paid out when there is a company surplus. This is primarily the result of favorable operating experience with respect to claims (death benefits paid), investment results, and expenses.

MassMutual has paid its dividend since 1869. This is no different in the year 2020. MassMutual released that they will pay out 1.7 billion in dividends in the year 2020. This correlates to a 6.20% dividend return and this dividend payout marks the 152nd consecutive payout in the history of the company.

MassMutual is lowing its dividend from the previous year from 6.40% to 6.20%. However, the current MassMutual dividend is still among the highest from the Mutual Companies. Although MassMutual did see a 20 bp reduction in their participating dividend to 6.20%, it is still a company that should be considered. MassMutual’s dividend is only rivaled by a few like Penn Mutual and Foresters. Also, their commitment to return a significant dividend is one of their strong points.

Dividend Returns vs Fixed Income Options

You will note in the following image that MassMutual’s dividend performance is extremely stable when put up against other fixed-income indexes. If you are looking for a safe place to put your money away. MassMutual participating whole life policies can be a great option.

MassMutual Dividend vs fixed income index

Dividend History

The dividend history since 2000 is very impressive:

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
8.20 8.20 8.05 7.90 7.50 7.00 7.40 7.50 7.90 7.60

 

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
7.00 6.85 7.00 7.10 7.10 7.10 7.10 6.70 6.40 6.40

As you can see that is a strong dividend, to see a complete historical analysis, you can read: Whole Life Dividend Rate Historical Analysis

MassMutual’s Investment Portfolio

A company’s investment portfolio is important because it shows how they invest their money. This is the money that helps the performance of the cash value in all of the policies. MassMutual takes a very diverse and calculated approach to their business and investment decisions. This, in turn, is what allows them to continue to pay dividends to the policy owners.

MassMutual Invested Assets

MassMutual BondsMassMutual’s Investment Strategy

The company says that they have a long-term investment philosophy, and their actions do reflect this. MassMutual’s goal is to generate long-term competitive results while maintaining the ability to weather downturns in financial markets.

With this strategy, MassMutual has been able to achieve solid long-term investment returns for the benefit of its policyowners without exposing them to unnecessary risk, even in unpredictable markets and economic cycles.

Performance 

The MassMutual Whole Life Insurance Performance numbers that we run at Top Whole Life show MassMutual among the top 5 constantly for Cash Value Growth and Income from Whole Life Insurance. 

Products

The following is a list of MassMutual’s whole life insurance products:

Whole Life Legacy 100

This is their oldest product. It has been sold for more than 165 years. This product is designed to be contractually paid until Age 100 and is MassMutuals lowest premium level premium product.

Whole Life Legacy 65

This product is guaranteed to be paid up (no more premiums) at age 65. This is one of the best sellers, and it is often utilized when whole life is presented as an income stream at retirement. It is excellent if you are young and want to build long term cash.

Whole Life Legacy 20 Pay

A fantastic product with regards to cash value accumulation. You only need to pay premiums for 20 years. This is a strong option for someone who would like to accumulate cash values faster. It is an excellent product for people in the 40’s.

Whole Life Legacy 15 Pay

The Legacy 15 is a new product released in December of 2019. It is a great product for those who want a shorter window then the 20 pay for cash accumulation. Parents and or grandparents may also like this product when buying coverage for there little ones to start their own whole life policy at a young age. The 15 pay, 12 pay, and 10 pay are all great ways to give insurance to children so they have a fully funded policy with cash values.

Whole Life Legacy 12 Pay

Another new product offering by MassMutual in late 2019 the Legacy 12 is a real stong option for a short pay whole life policy. Only fund the policy for 12 years and then the policy is fully funded. You now have the flexibility to choose between 10, 12, 15, or 20 years when considering a limited pay design.

Whole Life Legacy 10 Pay

One of the best cash value accumulation products in the market place. You only pay premiums for 10 years. This is one of the best-limited pay whole life products.

Whole Life Legacy HECV

Utilized in business insurance frequently. This product will have 90% of the premium in cash in the first year. We have a complete article dedicated to this product: High Early Cash Value Life Insurance. This is a product that most likely your agent will not show, as it pays the lowest commission of all.

Survivor Whole Life 20 Pay

This product is unique to all the rest. The survivor 20 pay product is designed to ensure two people with a whole life policy. The policy will be a more affordable option when planning for whole life costs. Keep in mind that the policy pays on the second-to-die.

All the previous whole life products from MassMutual are second to none. If you are thinking about whole life insurance you will not go wrong choosing this company.

See Whole Life Quote 

Convertible Term Insurance

If you are not ready to take the leap and start a whole life policy yet MassMutual also has a wide selection of term products to chose from.

Vantage Term 30 & 30 Extended Conversion Period

MassMutual released their 30-year level convertible term product in 2019. This is a fantastic option for someone who is looking to lock in coverage for a long time and then decide if they want whole life in the future. There is also an option to pay more for an extended conversion window. The standard is 10 years and the extended window would be 20. If you are on the fence about whole life you will want to consider the Vantage term 30.

Vantage Term 25 & 25 Extended Conversion Period

The Vantage 25 is similar to the 30 above but you are not locking in as many years. This will provide you the coverage you need at a lower price than the 30-year level product. You can also choose to buy up the extended conversion option.

Vantage Term 20& 20 Extended Conversion Period

The Vantage 20 is one of the most popular options prior to the 25 and 30 options were released. If you only need protection for the years your kids are in college of the remainder of your mortgage this is an affordable policy. If you decide this is the right policy and are considering converting later down the line you can also add the extended conversion option on this product as well.

Vantage Term 15 & 15 Extended Conversion Period

The vantage 15 has been a great alternative to the annually renewable term and the 10-year term options. MassMutual has age restrictions for when you can buy some of their products. All the other products we have reviewed so far have a max purchase age but the Vantage 15 can be locked in until age 70.

Vantage Term 10

Looking for cheap short term coverage? Vantage 10 is going to be a great choice. This is a level premium for 10 years and is convertible fo the full 10-year window.

Vantage Term Annually Renewable (ART)

If the Vantage 10 pay is too costly the Vantage ART policy is the absolute cheapest policy to buy. If you plan to convert in the first 3 years this policy is a better buy then the Vantage 10 pay.

See Term Quotes 

Coverpath

One of MassMutual’s most intersting offerings going into 2020 is that you can now research, quote, and apply for convertable term insurance and the suite of whole life products above completly online. This is a massive breakthrough and is going to be a game changer for consumers. Check out our Coverpath Review.

 

Underwriting 

You will have a tougher underwriting process with MassMutual than your average company. If you have average health or better, you will not have any issues; otherwise, they will be tougher than normal.

However, if you do have health issues, there may be better choices for you.

We have seen cases that MassMutual declines, but they get a great rating with Foresters or Penn Mutual

Health Ratings

Here is the list of ratings that MassMutual uses from best to worst:

  • Ultra Preferred
  • Select Preferred
  • Standard
  • Select Preferred Tobacco
  • Tobacco

As we mentioned before, they have better underwriting for healthier clients.

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Best Whole Life For Cash Value

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2 Comments

  • Brent lane Goumaz says:

    what is my rate on the whole life 100 legacy policy. Simple whole life to age 100 no cash value. Just pay out to my wife when I pass. Im age 62 excellent health. I work out do not smoke nor drink. Can run a mile. I want $100 K paid to her on my passing. Have no health conditions. Regular check ups.

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