Penn Mutual Life Insurance Review 2024
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Penn Mutual
on Nerdwallet
Financial strength rating
Online purchase
NAIC complaints
Policies offered
on Nerdwallet
Penn Mutual
Financial strength rating
Online purchase
NAIC complaints
Policies offered
Founded in 1847, Penn Mutual Life Insurance Co. sells policies through a national network of financial professionals. It has a solid lineup of term and permanent life insurance policies, plus riders. However, you can’t get a quote or apply for coverage online.
As a mutual company, Penn Mutual is owned by its policyholders. The company announced it will pay an estimated $200 million in dividends to policyholders in 2024, the highest number in Penn Mutual’s history.
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Penn Mutual life insurance rating
Penn Mutual earned 4.5 stars out of 5 for overall performance. NerdWallet’s ratings are determined by our editorial team. The scoring formula takes into account consumer experience, complaint data from the National Association of Insurance Commissioners and financial strength ratings.
Penn Mutual life insurance policies
PennMutual sells term and permanent life insurance, and you’ll need to contact a local agent to apply.
Term life insurance. Depending on your age, you can choose a term life insurance policy lasting 10, 15, 20 or 30 years, with coverage starting at $250,000. Qualifying applicants may not need to take a medical exam. If you buy the Guaranteed Convertible Term or One-Year Term policies, you might have the option to convert to permanent coverage without going through the full life insurance application process again.
Whole life insurance. Penn Mutual offers two whole life insurance policy options:
Guaranteed Whole Life II. This policy is open to individuals between 0 to 85 years old, and you can buy as little as $50,000 of coverage.
Survivorship Whole Life. Available to those ages 20 to 85, this policy covers two people — typically spouses. Coverage starts at $200,000.
Both policies build cash value and are eligible for dividends.
Universal life insurance. Penn Mutual has seven universal life insurance policies to meet customer needs. These include indexed universal life insurance options, which tie your cash value growth to the performance of an index, such as the S&P 500. If you want to choose the investments to funnel your cash value into, the company’s variable universal life insurance policy might be a good fit.
Available riders and add-ons
Penn Mutual offers a wide range of life insurance riders. The options vary by policy, and include:
Accelerated death benefit rider. Lets you access up to 50% of your policy’s payout (up to $250,000) if you’re diagnosed with a terminal illness.
Accidental death benefit rider. Pays out an additional sum of at least $5,000 if you die in an accident.
Child term rider. Provides $5,000 to $25,000 of coverage for your children under your life insurance policy.
Chronic illness accelerated death benefit rider. Allows you to access a portion of the death benefit if you have a chronic illness and can’t carry out everyday activities.
Disability waiver of premium rider. Pauses your premiums if you become disabled and can’t work. This rider kicks in after a waiting period of six months.
Disability waiver of premium with automatic conversion rider. Keeps your policy active if you become totally disabled before age 60, and converts your coverage to a whole life policy if you’re disabled for three consecutive years.
Estate preservation term insurance rider. Available on joint life insurance policies, this rider helps to offset estate taxes if you and your spouse die before transferring the policy ownership to an irrevocable trust.
Flexible protection rider. Gives you a chance to buy more permanent life insurance at a lower cost.
Guaranteed purchase option rider. Tops up your coverage without taking another life insurance medical exam.
Overloan protection rider. Prevents your policy from lapsing if you withdraw too much money from your cash value account.
Policy split option rider. Lets you trade in your survivorship policy for two separate whole life policies if you get divorced or there are changes to federal tax laws.
Supplemental exchange rider. Designed for business owners, this rider extends coverage to key employees.
Penn Mutual customer complaints and satisfaction
Over three years, Penn Mutual has drawn far fewer than the expected number of complaints to state regulators for a company of its size, according to data from the National Association of Insurance Commissioners.
More about Penn Mutual life insurance
You can manage your policy, pay premiums and update your life insurance beneficiaries by logging into the online portal. Penn Mutual doesn’t have an app for its policyholders. Beneficiaries can fill out the claims form online or call 800-523-0650.
Penn Mutual also sells fixed, variable and immediate annuities.
Life insurance buying guide
Before you start comparing companies, choose the type of life insurance you want, such as term or whole life. Decide which life insurance riders, if any, you want the policy to include. Calculate how much life insurance you need and how long you want the coverage to last. Check that the insurers you’re considering offer the coverage you’re looking for.
When comparing rates, be sure the quotes are for the same amount of coverage over the same period of time. It’s also important to make sure the policy’s medical requirements match your needs. For example, if you want to skip the life insurance medical exam but don’t mind answering health questions, confirm that the application process for each policy you're comparing aligns with that.
Price may not be the biggest driver behind your decision to buy. Look at the number of consumer complaints each company receives, as high numbers can be a red flag about the quality of service.
For more guidance, see our life insurance buying guide.
Methodology
Life insurance ratings methodology
NerdWallet’s life insurance ratings are based on consumer experience, complaint index scores from the National Association of Insurance Commissioners for individual life insurance, and weighted averages of financial strength ratings, which indicate a company’s ability to pay future claims. Within the consumer experience category, we consider ease of communication and website transparency, which looks at the depth of policy details available online. To calculate each insurer’s rating, we adjusted the scores to a curved 5-point scale.
These ratings are a guide, but we encourage you to shop around and compare several insurance quotes to find the best rate for you. NerdWallet does not receive compensation for any reviews. Read our editorial guidelines.
Insurer complaints methodology
NerdWallet examined complaints received by state insurance regulators and reported to the National Association of Insurance Commissioners in 2020-2022. To assess how insurers compare with one another, the NAIC calculates a complaint index each year for each subsidiary, measuring its share of total complaints relative to its size, or share of total premiums in the industry. To evaluate a company’s complaint history, NerdWallet calculated a similar index for each insurer, weighted by market shares of each subsidiary, over the three-year period. NerdWallet conducts its data analysis and reaches conclusions independently and without the endorsement of the NAIC. Ratios are determined separately for auto, home (including renters and condo) and life insurance.
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