MassMutual Life Insurance – Company Review
About MassMutual
Founded in May 1851, MassMutual had a singular purpose to help American families secure their financial futures and protect their loved ones. Today, almost 170 years later, that original singular purpose remains as a guiding principle for the company.
Organized as a mutual company means MassMutual Life Insurance answers to its policyholders rather than Wall Street. The MassMutual management team is committed to focusing on policyholders’ long-term interests rather than the expectations of stockholders.
Although dividends from a mutual insurer are never guaranteed, MassMutual has consistently paid annual dividends to its qualified policyholders since the 1860s. The company’s success is reflected year after year by the national rating services and demonstrates that MassMutual’s financial strength never wavers.
Financial Ratings for MassMutual
Most people seem to consider that when they choose a life insurance company to do business with, the relationship can easily last for decades. When you purchase a life insurance policy, you are purchasing a promise from that company to pay your beneficiary when you eventually pass away.
An insurance company’s financial ratings are the best indication if they can keep that promise and fortunately, because of 21st-century technology, consumers can verify in advance how a company they are considering is doing financially. Here are MassMutual’s financial ratings:
Rating CompanyCurrent RatingA.M. BestA++Standard & Poor’sA+Moody’s Investors ServiceAa2Fitch RatingsAA+Comdex Score98
To learn more about financial strength ratings click here
MassMutual Life Insurance Products
To accommodate the needs of its customers and prospective customers, MassMutual offers a comprehensive selection of life insurance products, disability income insurance, and long-term care insurance.
Term Life Insurance
MassMutual’s term life insurance allows individuals and families to have access to affordable life insurance that can be used for many financial risks like income replacement, mortgage payoff, personal loan, credit card debt payoff, college expenses, funding a survivor’s retirement plan, and paying for final expenses.
MassMutual offers its Term Insurance online directly to the consumer. The product is very similar to other insurance companies when comes to available policy terms and optional riders. We have found that MassMutual’s rates for Term Insurance are a little on the high side when compared with other insurance companies.
Here is a rate comparison chart for a 30-year-old male non-smoker in a preferred rate class for a 20-year $50,000 policy:
MassMutual: $23.50 per monthBanner Life: $19.49 per monthProtective Life: $19.50 per monthAIG: $19.92 per monthLincoln Financial: $20.30 per month
Whole Life Insurance
For individuals and families that prefer permanent life insurance protection and a cash value account that will grow over time, whole life insurance might be the best solution. Although whole life is priced higher than term insurance and universal life, there are certain benefits and guarantees that consumers have grown to trust, and policyholders can take advantage of annual dividends since the policy was issued by MassMutual, a mutual insurance company.
Guaranteed life insurance for a lifetime – When you purchase whole life insurance, your insurance company cannot cancel your policy for any reason other than non-payment. Your coverage will be there when your surviving loved ones need it.Guaranteed level premiums for a lifetime –Once your whole life policy has been issued, your insurance cannot for any reason increase your periodic premiums. Even if you become terminally ill and have to live out your life in a nursing home, your insurance company cannot increase your rates.Cash value growth over a lifetime – All whole life insurance policies earn interest on the cash value account. Most companies will pay a minimum guaranteed amount that is stated in the insurance contract. The good news is that you can access the cash value in your policy for any reason via policy loans or withdrawals.
Another benefit that is available with the MassMutual whole life policy is the Long-Term Care Access Rider that will allow the insured to access a portion of the death benefit to help pay for long-term care expenses.
Universal Life Insurance from MassMutual
Universal Life insurance is the most popular option for insurance shoppers who want a guaranteed death benefit, the opportunity to accumulate wealth over time, and the flexibility to change premium payments or the death benefit when life events make it necessary.
The UL Guard offered by MassMutual will meet these needs and more when you are considering financial solutions for you, your family, or your business:
What You NeedHow UL Guard Can Help YouProtection for family or businessProvides a guaranteed death benefit for your family or business for any time period or up to a lifetimeCustomized Premium PaymentYou select how long you want to make payments and then MassMutual bills you based on that number of years.Customized CoverageYou determine the number of years that you need the death benefit based on your circumstances and protection needs.Tax AdvantagesThe death benefit paid to your beneficiary is generally tax-free, and loans that you take against your cash value are typically tax-free as well.
MassMutual also offers Survivorship UL Guard that can be used to help pay inheritance and estate taxes that your heirs may be faced with when you and your partner or spouse have passed away.
Variable Universal Life
The MassMutual Variable Universal Life product has all of the benefits of the traditional universal life product except that the funds in the cash value account can be allocated among various market indices or to the Guaranteed Principal account which is a fixed account that earns a daily guaranteed interest.
In Conclusion
When you consider the number of years MassMutual has been offering life insurance, the continuously high company ratings they receive, and the product selection that can cover most financial needs of an individual, family, or business, MassMutual should be on your shortlist while shopping for life insurance.
