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
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.
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.
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.
Today MassMutual sits in position 84.
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.
You may not be familiar with some of these highlights, but they are very impressive:
- Total Revenue in 2019: $30 Billion
- The company sold $607 million of whole life in 2019
- Assets increased by 10 percent. This brings MassMutual to nearly $280 billion.
- Surplus and capital saw increases of 21 and 23 percent
- Revenue hit a record high in 2019 at $32.6B
- The 209 Dividend of $1.7B to policyowners exceeded $1.5B for a sixth consecutive year.
- $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
Summary of Operations
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.
The dividend history since 2000 is very impressive:
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’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.
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.
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.
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.
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.
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.
Here is the list of ratings that MassMutual uses from best to worst:
- Ultra Preferred
- Select Preferred
- Select Preferred Tobacco
As we mentioned before, they have better underwriting for healthier clients.