Updated November 9th, 2018

Penn Mutual Whole Life Insurance Review 

Penn Mutual, also known as the Penn Mutual Life Insurance Company, was founded in 1847.

With so much experience, the company knows exactly what it takes to sell and service many types of insurance policies, including whole life coverage.

With revenue of approximately $2.3 billion and more than 1,500 employees, it’s easy to see that many consumers rely on this company for all their life insurance needs.

Here’s the question you need to answer: does the company’s whole life insurance stack up well when compared to the competition?

The Good

High Rating

It’s important to do business with a life insurance company with a strong financial rating. This way, you don’t have to concern yourself with trouble in the future.

For more than 150 years, Penn Mutual has been one of the highest rated companies in the industry, thanks to its financial strength.

Its current ratings include:

  • M. Best A+ (Superior)
  • Moody’s Investors Service Aa3 (Excellent)
  • Standard & Poor’s A+ (Strong)

Penn Mutual may not have the highest ratings, but these three prove that the company is on stable ground.

Participating Whole Life Insurance

There is more to buying life insurance than the death benefit. In some cases, this can also be considered an investment in your future.

With Penn Mutual, you’ll be glad to know that its whole life insurance products are participating. In short, this means you earn a dividend along with a guaranteed interest rate.

NFP discusses this on its website, comparing Penn Mutual whole life dividends to the competition. A quick review shows that Penn Mutual is competitive with other top whole life insurance companies. 

Stable Dividend Rate 

Penn Mutual is committed to providing competitive whole life insurance policies, complete with a solid dividend. Here is the company’s dividend history, dating back to 2000: 

200020012002200320042005200620072008
7.407.407.406.485.745.746.306.306.34

 

2009201020112012201320142015201620172018
6.346.346.346.346.346.346.346.346.346.34

Even in an environment where many companies drop their dividend rate (MassMutual, Northwestern Mutual, Guardian Life, etc) Penn Mutual remains with a very strong dividend that hasn’t changed since 2008.

For a Full Historical Dividend Analysis Read: Historical Whole Life Dividend Rates

Related : Penn Mutual Announces 2018 Dividend

Customer Service 

Buying life insurance is one of the biggest financial decisions you’ll ever make, so it’s important to work with a reputable company.

Penn Mutual provides one of the best customer service experiences in the industry, thanks to its large network of agents and the ability to receive assistance via phone at any time.

Furthermore, its online customer service center is a great place to turn for tax forms, making payments, managing your account, and much more. 

The Not So Good 

No Online Payment Option

In today’s day and age, consumers expect a robust online experience. Despite the fact that the Penn Mutual website is full of information and advice, it falls short in regards to its payment system.

As a policyholder, you can make payments by mail, however, you don’t have the ability to do so via the internet. This isn’t the biggest issue a company can have, but it’s a definite inconvenience. 

Finances 

There is plenty of information available in regards to Penn Mutual’s finances, including the following:

  • $25 billion assets under management
  • 2017 dividend of 6.34%
  • 2018 dividend of 6.34%

Image Source Penn Mutual.

Financial Ratings 

Penn Mutual has amazing ratings all through out.

  • A+ Rating From A.M. Best
  • A+ Rating Standard & Poor
  • Aa3 Moody’s
  • 92 Comdex Life Insurer Financial Profile

As you can see these are very impressive financial ratings from a very strong company.

Products

Penn Mutual sells both term, whole life insurance policies, universal life policies, disability polices and much more. Its whole life policies are among the most popular, with the company making note of the following benefits:

  • Money when you need it, thanks to the ability to build cash value.
  • Security and stability, allowing you to plan for the future.
  • Simple and flexible, ensuring that you get the policy that best suits you and your family.

Another interesting product to consider from Penn Mutual is their Indexed Universal Life Insurance

Direct Recognition vs Non-Direct Recognition

Penn Mutual uses direct recognition on their whole life insurance. Without getting to technical but non-direct recognition companies may be able to distribute income much better than direct recognition companies.

However, Penn Mutual’s whole life is so strong that it doesn’t suffer while taking income.

Guaranteed Choice Whole Life

The main whole life product that Penn Mutual offers is called Guaranteed Choice Whole Life. It provides death benefit and cash value guarantees of a traditional whole life policy. Also you can have additional flexibility in policy payments.

You can chose how long to pay for the policy. You can chose a whole life that you pay for 5 years, or all the way up to age 100. Regardless of the length of the period you chose, once the policy is paid-up the death benefit and cash values are guaranteed to age 121.

In addition, as a participating plan, the policy is also eligible for non-guaranteed dividends. 

Health Rating Classifications 

Here are the possible health ratings that you can get. We listed them in a descending order from best to worst.

  • Preferred Best (Available for Guaranteed Term products)
  • Preferred Plus Non-Tobacco
  • Preferred Non-Tobacco
  • Standard Non-Tobacco
  • Preferred Tobacco
  • Standard Tobacco

*Only Standard Rates are available for Issue Ages 0 – 19. 

Final Word 

When you know what you’re looking for in a whole life insurance company, it’s easy to find a policy that suits your every need.

With a long history of providing high quality products and service, many consumers trust Penn Mutual with all their life insurance requirements.

See how Penn Mutual Ranks in our Top 7 Whole Life Companies For Cash Value.

Other Reviews 

Check out some of our other top whole life reviews:

Compare Penn Whole Life Insurance vs The Best

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