Updated March 22nd, 2019
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?
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. Also their whole life insurance rates are very competitive.
Stable Dividend Rate
Penn Mutual is committed to providing competitive whole life insurance policies, complete with a solid dividend. Now let’s see the company’s dividend history, dating back to 2000:
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, even-though they had a small decrease.
For a Full Historical Dividend Analysis Read: Historical Whole Life Dividend Rates
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
In reality, it is hard to find bad things about Penn Mutual. However, their incredibly stable dividend that stayed at 6.34% for 11 years, just suffered a hit.
Their new dividend for 2019 is 6.10%. It’s not a massive drop, but it is a decrease.
That is still a very high dividend compared to the competition and it ranks highly in our Dividend Rate History article.
There is plenty of information available in regards to Penn Mutual’s finances, including the following:
- $25 billion assets under management
- 2018 dividend of 6.34%
- 2019 dividend of 6.1%
Image Source Penn Mutual.
Penn Mutual has amazing ratings all through out.
- A+ Rating from A.M. Best
- A+ Rating from Standard & Poor
- Aa3 Excellent Rating from Moody’s
- 92 Comdex Life Insurer Financial Profile
As you can see these are very impressive financial ratings from a very strong company.
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.
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.
Versatile Choice Whole Life
This policy gives you great flexibility as you can design how long you want to pay for it.
Do you want to pay only for 10 or 15 year? No problem.
In addition you get some default riders:
- An Overloan Protection Benefit Rider which keeps makes sure that you don’t lapse the policy, even if you have loans on it.
- Two waiver of premium riders to help protect the policy if the insured becomes totally disabled
- Chronic Illness Accelerated Benefit Rider
Great whole life product with great flexibility.
Survivorship Choice Whole Life
Survivorship Choice Whole Life is a permanent life insurance for two people that pays a death benefit after the second death. The main purpose of this type of policy is to pass wealth to the next generation or to pay for estate taxes.
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.
Health Rating Classifications
Here are the possible health ratings that you can get, so you can compare policies apples to apples. 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.
Finally, with a long history of providing high quality products and service, many consumers trust Penn Mutual with all their life insurance requirements.
Our final take is that you cannot go wrong with a Penn Mutual Whole Life policy.
See how Penn Mutual Ranks in our Top 7 Whole Life Companies For Cash Value.
Check out some of our other top whole life reviews: