Illinois Mutual Life Insurance Company Review 2018

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If you were looking for a review about Illinois Mutual Life Insurance company, you have landed on the right page. One of the hardest challenges in buying life insurance is choosing the right company for your situation. It should come as no surprise to you that the type of pre-existing conditions you have will get you higher rates or your application could be declined.

So, choosing the right company is imperative. With hundreds of insurers out there, how do you find the right one? We believe the first step you can take is to read life insurance company reviews. I will review Illinois Mutual Life Insurance and compare them against the best in the industry with regard to rates, underwriting, and product types.

Illinois Mutual Life Insurance History

Illinois Mutual has been in the life insurance, disability insurance, and worksite insurance for over 100 years. They are a family business run by four generations of McCord family since its founding in 1910. Illinois Mutual is located in Peoria, IL, conducting business in 47 states with over 18,000 independent agents and more than 200 workers in the home office.

Recently, they were ranked number 127 among the top 200 life writers based on more than $1.2 billion in assets. Illinois Mutual’s motto is simple: “We help people achieve and safeguard their financial security.”

Illinois Mutual Life Insurance Financial Ratings

According to A.M. Best, a benchmark in life insurance financial reviews, Illinois Mutual has A- (Excellent) rating.

Products Offered by Illinois Mutual Life Insurance

Illinois Mutual offers disability insurance, worksite insurance, and life insurance products. In this review, I will only look at their life insurance products, which include term life, whole life, return-of-premium term, and final expense products. Let’s get to it!

Path Protector Term Life Insurance

Illinois Mutual’s term life insurance offers a guaranteed premium for a period of 10, 15, 20, or 30 years. Your death benefit remains the same throughout the initial contract, and at the end of the term, you can drop the policy, convert it to a permanent policy (without proof of insurability), or renew it on an annual basis until the expiration age of 95.

  • Level premium for the initial period of 10, 15, 20, or 30 years
  • Issue ages:
    • 18–75, 10-year term
    • 18–65, 15-year term
    • 18–60, 20-year term
    • 18–50, 30-year term
  • Minimum face value: $25,000
  • Fully convertible to permanent policy through the 20th policy year or age 70, whichever comes first
  • No-exam option for clients 18–65 for face values: $25,000–$250,000

Optional Riders

Life insurance riders are an add-on benefit to customize the coverage for your specific needs. Most riders are optional and cost extra.

  • Terminal illness accelerated death benefit rider: This rider is included with Path Protector at no additional cost. If you were diagnosed with a terminal illness and have less than 24 months to live, you can tap into 80% of the policy’s face value or $500,000.
  • Disability waiver of premium: This rider will waive your insurance premium during the total and permanent disability of the insured. Keep in mind; this rider terminates when you reach the age of 60.
  • Child insurance: This rider provides term life insurance until age 25 on the insured’s children ages 0–18 at issue. One unit equal $1,000 of coverage and the annual premium is $6. The maximum number of units you can buy is 20.

Path Protector Whole Life Insurance

Whole life insurance is permanent coverage that lasts for the insured’s lifetime. The death benefit, premium payment, and cash value accumulation are guaranteed to stay the same regardless of age or health history.

The cash value grows, tax-deferred under current tax laws, and also gives you an opportunity to access it through loans should you need it in the future. Illinois Mutual’s whole life provides five payment plans: single pay, 10-pay, 20-pay, to age 65 pay, or continuance pay to age 121.

  • Guaranteed premium rates
  • Guaranteed death benefit
  • Guaranteed cash accumulation
  • Payment options:
    • Single pay: your policy is fully paid up after a single payment
    • 10-pay: your policy is fully paid up after 10 years
    • 20-pay: your policy is fully paid up after 20 years
    • To age 65 pay: your policy is fully paid up at the insured’s age 65
    • Continuous pay: your policy is fully paid up at the insured’s age 121
  • Accelerated benefit rider is included at no extra charge

Optional Riders

  • A level term insurance: This rider provides additional life insurance coverage on the insured, partner, or children.
  • Paid-up insurance: This rider allows the additional purchase of paid-up life insurance coverage.

Path Protector Return-of-Premium Term Life Insurance

Return-of-Premium life insurance, also known as “ROP”, is a term life insurance policy that returns your premium payments should you outlive the initial term period. In other words, if you paid $1,000 per year for a 20-year term, once the term is over you will get $20,000 back.

Seems like a no-brainer, right? Not so fast. “ROP” policies are more expensive than term life, and if you add inflation into the equation, you only get your paid premium back without any interest.

  • Level premium for the initial period of 20 or 30 years
  • Issue ages:
    • 18–60, 20-year term (non-tobacco)
    • 18–55, 20-year term (tobacco)
    • 18–50, 30-year term (non-tobacco)
    • 18–45, 30-year term (tobacco)
  • Face value: $25,000–$250,000

Optional Riders

  • Terminal illness accelerated death benefit rider is included
  • Disability waiver of premium
  • Child insurance

Path Protector Final Expense Insurance

Final expense insurance is a type of coverage that is designed to deal with the expenses related to your passing away. Bills such as burial services, medical bills, and probate expenses are a few of the reasons people buy final expense life insurance.

Illinois Mutual’s final expense coverage doesn’t require the applicant to undergo an exam as part of the underwriting process. They come in two flavors: Level death benefit and Modified death benefit.

Level Death Benefit

  • Immediate full death benefit from day one
  • Simplified issue life insurance without an exam
  • Whole life coverage
  • Level death benefit
  • Level premiums that never increase
  • Minimum death benefit: $5,000
  • Maximum death benefit:
    • $50,000 (ages 60–65)
    • $35,000 (ages 66–85)

Modified Death Benefit

Illinois Mutual’s modified death benefit plan will have a two-year waiting period for the full death benefit amount. In other words, this plan is suitable for individuals who aren’t in the best of health who otherwise are not eligible for the level death benefit plan.

In the first two policy years, the plan will only pay your paid premium plus accumulated 5% in interest. After the first two years have passed, the plan will pay 100% of the purchased death benefit. If, however, the death is a result of an accident, the plan will pay the full death benefit.

  • Simplified issue life insurance without an exam
  • Whole life coverage
  • Minimum death benefit: $5,000
  • Maximum death benefit:
    • $25,000 (ages 60–65)
    • $20,000 (ages 66–70)
    • $15,000 (ages 71–75)
    • $10,000 (ages 76–85)
  • If death isn’t a result of an accident, only premium plus 5% in interest will be paid during the first two policy years

Knock-Out Questions for Modified Death Benefit

If you answer yes to any of the questions below, you will only be eligible for the modified death benefit plan.

In the past two years, have you had or been treated (office visits, medications, or surgery) for:

  1. Pacemaker, heart attack, heart surgery, congestive heart failure, angina (chest pain), or other heart or circulatory disease or disorder?
  2. Systemic Lupus, brain tumor, stroke, or aneurysm?
  3. Alzheimer’s disease, Parkinson’s disease, dementia, Cerebral Palsy, epilepsy (seizures, convulsions), Huntington’s disease, muscular dystrophy, multiple sclerosis, Lou Gehrig’s disease (ALS), or Schizophrenia?
  4. Cirrhosis, chronic hepatitis, Hepatitis C or other liver disease, kidney failure, chronic glomerulonephritis, polycystic kidney disease, or other kidney disease?
  5. Alcohol and/or drug abuse?
  6. Diabetes, which includes treatment by oral medication or insulin?
  7. Chronic obstructive pulmonary disease (COPD), emphysema, chronic bronchitis that is not seasonal, or other chronic respiratory disorder excluding allergies or asthma?
  8. In the past five years, have you had or been treated (office visits, medications, or surgery) for internal cancer, leukemia, or malignant melanoma?

Source: Illinois Mutual final expense application

vs. Other Carriers’ Sample Monthly Rates

illinois mutual life insurance sample rates

Male Whole Life $30,000

CompanyAge 50Age 60Age 70Age 80
 Illinois Mutual $76.91 $119.76 $192.97 $339.54
 Assurity $82.06 $120.55 $214.75 $462.30
 Mutual of Omaha $81.06 $121.86 $214.69 $391.56
 Americo $88.59 $123.44 $211.19 $429.36
 Liberty Bankers Life $82.27 $128.14 $210.67 $431.14
 Phoenix$82.17 $121.53 $209.94 $432.47
 American-Amicable $87.12 $132.00 $224.43 $448.80
 United Home Life $84.35 $125.38 $215.19 $407.10
 Settlers $94.35 $135.92$218.54 $461.81
 Transamerica $85.04 $124.29 $216.83 NA

Female Whole Life $30,000

CompanyAge 50Age 60Age 70Age 80
 Illinois Mutual $58.17 $126.60 $175.57 $281.25
 Assurity $72.05 $99.83 $164.82 $337.27
 Mutual of Omaha $67.60 $92.20 $153.31 $288.89
 Americo $66.07 $94.20 $152.68 $330.72
 Liberty Bankers Life $67.45 $94.76 $155.11 $318.23
 Phoenix$71.61 $101.10 $157.49 $322.43
 American-Amicable $72.60 $106.39 $170.81 $326.04
 United Home Life $69.47 $97.55 $148.71 $305.13
 Settlers $78.03 $109.14 $167.28 $340.43
 Transamerica $68.82 $94.02 $154.84NA

Male 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 Principal $14.66 $19.03 $42.61 $110.03
 SBLI $14.79 $21.67 $51.68 $147.70
 Transamerica $20.34 $26.45 $51.17 $135.88
 Illinois Mutual $31.46 $43.56 $84.92 $216.04

Female 20-year Term $250,000

CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 Principal $13.13 $16.63 $32.90 $77.92
 SBLI $13.31 $18.99 $36.46 $90.37
 Transamerica $13.98 $21.72 $40.64 $110.51
 Illinois Mutual $29.70 $39.60 $65.34 $138.38

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of July 2018 and are subject to underwriting approval.*

Last Word

Here’s our unbiased Illinois Mutual Life Insurance review. When it comes to term life insurance by Illinois Mutual, they are not competitive, price-wise. You will be better off with companies such as Banner or Protective Life, provided you can qualify, of course.

Illinois Mutual’s final expense products are very competitive, price-wise, and you should consider them if you are shopping for final expense insurance. When comparing life insurance quotes, you need to find out which company will approve your application. You can apply with ten different companies hoping one will issue a policy, or you can work with a broker who can accomplish this for you after a short interview. Give us a call at 866-326-3053 or run the quotes yourself on this page.

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2018-07-06T15:44:51+00:00July 6th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued pit bull puppies. He also enjoys real food, heavy squats, critical thinking, and reading.

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