With hundreds of life insurance companies in the US, it’s more imperative than ever to understand what products you’re buying and whom are you buying from. Sure, they all sell life insurance coverage. However, some only offer final expense policies while others may only provide term life insurance.

As brokers, we are always being asked about Penn Mutual Life Insurance, so I decided to write our Penn Mutual Life Insurance Company review in which I will cover the life insurance plans and rates. Let’s get to it!

Penn Mutual Life Insurance History

The Penn Mutual Life Insurance Company, usually referred to as Penn Mutual, was established in Philadelphia, Pennsylvania, in 1847. In 1848, they paid their first death benefit in the amount of $4,963.33 on the life of a Mr. William B. Cooper. By 1888, Penn Mutual was selling annuities. By 1920, the in-force policies on the books reached $1 billion. Since Penn Mutual was founded over 170 years ago, they have helped generations of men and women to safeguard what is most important to them.

Penn Mutual Life Insurance Company Ratings

  • A.M. Best: A+ (Superior)
  • Standard & Poor’s: A+ (Strong)
  • Moody’s: Aa3 (Excellent)
  • Comdex: 92

Products Offered by Penn Mutual Life Insurance

Penn Mutual offers annuities and life insurance products for individuals and families. I’ll take a look at Penn Mutual’s life insurance policies.

Guaranteed Term 10–15–20

Guaranteed Term 10–15–20 by Penn Mutual provides the necessary protection you require now with the option to convert the policy to permanent coverage later, before age 70. With Penn’s term life insurance, your premiums and death benefit remain fixed (level) for a particular period of 10, 15, or 20 years. Arguably, term life is excellent protection for those who are on a budget and seeking short-term solutions against premature death.

Mortgage protection, income replacement, or college tuition are a few reasons to consider term life. Since term life insurance has no cash component, you essentially pay for “pure insurance” and nothing else—therefore you are able to enjoy its affordable prices.

Optional Riders

  • Disability waiver of premium
  • Accidental death benefit
  • Children’s term insurance

Versatile Choice Whole Life

Versatile Choice Whole Life offers lifetime protection with three guarantees: Fixed premiums, cash value accumulation, and death benefit to be paid upon your death. Considering that whole life builds cash value on a tax-deferred basis, it may be an excellent addition to your overall financial plan.

However, it’s worth bearing in mind that whole life costs substantially more than term life insurance does, and it may not suit most people. Penn Mutual’s whole life comes with living benefit rider at no additional cost which can help you access a portion of the death benefit while still alive if you were diagnosed with a terminal or chronic illness.

Survivorship Choice Whole Life

Survivorship Choice Whole Life, also referred as second-to-die or joint coverage, is an insurance policy that protects two individuals and pays the death benefit after the death of the second insured. Survivorship life insurance is a preferred solution for high-net-worth individuals who intend to transfer an estate or business to their heirs without generating a tax burden that occurs due to the inheritance.

Optional Riders

  • Flexible protection
  • Accelerated permanent paid-up additions
  • Enhanced permanent paid-up additions
  • Overloan protection benefit
  • Disability waiver of premium
  • Enhanced disability waiver of premium
  • Accidental death benefit
  • Guaranteed purchase option
  • Children’s term insurance
  • Surrender value enhancement

Protection Guard Universal Life

For those who need permanent protection but dislike the inflexible template whole life brings to the table, universal life could be what they are looking for. Protection Guard Universal Life by Penn Mutual offers both guarantees and flexibilities for your life’s events as they unfold.

Firstly, universal life is a permanent coverage that offers a guaranteed death benefit to be paid to your beneficiaries upon your death, whenever that time is. Secondly, universal life comes with a cash value component attached to the policy which accumulates on a tax-deferred basis and can be accessed should you need to take a loan or make a withdrawal. Penn Mutual guarantees annual accumulation of at least two percent each year. When it comes to flexibility, UL allows you to skip premium payments (as long as there is enough cash value) or adjust the death benefit amount in the future based on your life’s predicaments.

Guaranteed Protection Universal Life

Guaranteed universal life is a policy that lets you choose your coverage based on age as opposed to period (think of term life 10, 20, or 30 years). Without going too much off topic here, guaranteed universal life (GUL) has a built-in no-lapse guarantee provision that ensures your policy won’t lapse even if your policy value falls to zero or below by offering a fixed premium payment to a specific age. Penn Mutual’s GUL is guaranteed to age 121, but the way you can pay for it is a little different. You have six choices:

  • 1 pay: It takes one payment to have a fully paid-up policy
  • 10 pay: You can pay for 10 years
  • 20 pay: You can pay for 20 years
  • Pay 100 100: Pay to the age 100
  • Pay 121 100: Pay to the age 100

Accumulation Builder Select Indexed Universal Life

The main difference between traditional universal life and indexed universal life is how the cash value in the account earns interest. With IUL, your cash isn’t invested directly in the stock market. Instead, the interest is credited to your account based on the performance of a particular market sector.

Your interest is calculated based on the percentage of the point-to-point change in index performance. So, if the S&P500 gained seven percent last month, the cash value in your account will increase by that amount. With Penn Mutual, you get the option to choose from five indexed accounts and one fixed account.

Lastly, Penn Mutual provides floor protection of one percent due to negative index performance—so you can enjoy the upside market gains without the worry of losing account value.

Survivorship Plus Select Indexed Universal Life

A survivorship policy protects two lives in one cost-effective coverage that pays the death benefit after the death of the second insured. It comes with the 20-year no-lapse guaranteed rider that keeps your coverage unimpaired, with the option to extend it up to the age 121. It also comes with the selection of five diverse indexed accounts and one fixed account from which to choose.

Diversified Growth Variable Universal Life

Those who seek the “Six Flags Magic Mountain” of universal life should take a look at Variable Universal Life. With VUL, your money is invested directly in the stock market through mutual funds, stocks, or bonds. Sure, VUL has the potential for strong tax-deferred cash accumulation to maximize your financial dreams, however, don’t forget that you must have the stomach for it (it’s tied to a market’s performance). This policy comes with the 20-year no-lapse rider which ensures your death benefit remains secure even if the cash value falls to zero.

Penn Mutual allows you to invest it in two ways based on your overall goal:

  1. For personal choice and flexibility: This option must include your active participation and monitoring such investments by assessing your risk tolerance and making modifications. In other words, you actually build a customized investment portfolio which is invested in domestic equities, emerging markets, or bonds funds.
  2. For built-in diversification and discipline: If you are looking for even more return potential than managing your investment yourself and prefer an automated approach, choose a LifeStyle fund. It offers a more aggressive approach to investing and the funds are continually reviewed by Penn Mutual Asset Management with the involvement of Ibbotson Associates, one of today’s top-ranked independent experts in the field of asset allocation.

Penn Mutual vs. Other Carriers’ Sample Monthly Rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $13.05 $19.01 $40.44 $110.28
 Protective $13.05 $17.80 $41.26 $110.61
 AIG $13.17 $19.37 $42.24 $118.76
 Pacific Life $13.18 $18.79 $41.44 $110.29
 Lincoln$13.28 $18.16 $41.15 $109.77
 Mutual of Omaha $13.55 $20.64 $45.80 $134.59
 Principal $14.00 $18.55 $41.19 $109.81
 North American $14.30 $20.02 $43.56 $115.06
 Penn Mutual $14.57 $19.58 $45.46 $121.37
 Prudential $20.35 $24.50 $45.50 $128.85

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $11.61 $15.39 $32.21 $78.83
 Protective $11.76 $15.44 $31.65 $77.17
 AIG $11.67 $16.59 $33.90 $87.98
 Pacific Life $11.71 $16.00 $31.83 $77.91
 Lincoln$11.82 $15.67 $31.57 $82.47
 Mutual of Omaha $12.26 $17.63 $35.69 $101.91
 Principal $12.54 $16.19 $32.07 $77.18
 Penn Mutual $12.83 $16.97 $34.80 $85.04
 SBLI $13.06 $17.72 $34.71 $90.37
 Prudential $17.28 $22.53 $40.03 $89.25

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $20.00 $32.68 $73.52 $204.89
 Protective $20.01 $28.75 $75.24 $207.86
 AIG $20.01 $30.27 $76.86 $218.79
 Pacific Life $20.19 $30.26 $75.22 $207.36
 Lincoln$20.39 $30.50 $74.99 $213.02
 Mutual of Omaha $21.29 $32.90 $82.78 $249.19
 SBLI $21.32 $34.97 $87.00 $286.85
 Penn Mutual $22.19 $32.19 $82.22 $222.72
 North American $22.44 $33.44 $79.20 $218.68
 Prudential $33.25 $41.57 $83.57 $250.25

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $17.37 $25.20 $58.35 $150.93
 AIG $17.44 $26.85 $58.05 $161.51
 Pacific Life $17.51 $25.69 $56.10 $144.97
 Protective $17.53 $25.11 $54.88 $138.51
 Lincoln$17.68 $25.64 $55.31 $144.95
 SBLI $18.18 $27.33 $63.08 $173.03
 Mutual of Omaha $18.28 $28.17 $61.71 $172.65
 Principal $18.52 $25.81 $57.58 $147.79
 Penn Mutual $19.14 $27.84 $61.34 $154.43
 Prudential $27.13 $37.63 $72.63 $171.07

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 AIG $32.83 $53.35 $141.42 $415.02
 Lincoln$32.91 $53.12 $142.11 $409.07
 Protective $33.78 $51.67 $141.51 $393.73
 SBLI $34.34 $55.91 $147.73 $457.62
 Pacific Life $34.72 $54.10 $141.44 $406.55
 Principal $36.21 $54.51 $145.08 $418.34
 Banner $36.33 $54.74 $141.41 $411.08
 Penn Mutual $38.28 $58.29 $153.99 $437.61
 North American $39.61 $60.28 $150.92 $427.24
 Prudential $48.57 $70.44 $157.94 $467.69

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Banner $25.98 $46.96 $110.42 $294.55
 Protective $28.50 $43.52 $101.32 $265.48
 AIG $25.99 $44.80 $109.78 $311.56
 Pacific Life $28.73 $44.50 $103.19 $274.04
 Lincoln$27.48 $43.41 $102.73 $282.01
 Mutual of Omaha $30.32 $48.38 $112.88 $327.88
 Principal $30.35 $44.89 $105.26 $283.06
 North American $32.12 $48.84 $113.08 $283.80
 SBLI $29.04 $43.67 $103.07 $270.11
 Penn Mutual $32.19 $47.85 $114.84 $348.87

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Jan 2019 and are subject to underwriting approval.*

Bottom Line

With over 170 years in business and outstanding financial ratings, Penn Mutual is an exceptional and trustworthy life insurance company. That said, the insurance product you are seeking will have a bearing to whether Penn Mutual is a preferred choice or not.

For instance, if you seek term life insurance, Penn Mutual only offers up to 20-year period, and their pricing isn’t as competitive when compared to other companies (see table above), so if you need 25- or 30-year term, look elsewhere. However, if you are after the whole, universal, or guaranteed universal life, you definitely need to get a quote from Penn Life, because these policies are in their wheelhouse.

Give us a call today at 1-866-326-3053, so we can help you choose the right policy for your needs. Alternatively, you can use the form on the right-hand side of the screen to get instant life insurance quotes from A-rated companies

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