MassMutual Life Insurance Review
Posted in Life Insurance Companies last updated on March 3, 2021Massachusetts Mutual Life Insurance celebrates a long legacy of serving policyholders with its life insurance offerings.
Founded in 1851, the Massachusetts-based organization, more commonly known as MassMutual, offers whole life, term life, and universal life policies.
MassMutual also boasts of the best financial strength ratings in the industry and an excellent complaint index score.
Young families and adults often choose MassMutual to be their insurance company because of the wide array of insurance plans available and the plans’ value pricing.
MassMutual also offers ways to supplement retirement accounts, along with insurance products that can take care of a family’s needs.
If you are seeking life insurance options and want to talk about your needs with a financial advisor, you should consider MassMutual Life Insurance.
Keep reading to discover more information about MassMutual Life Insurance, company ratings, life insurance offered, life insurance riders offered, the eligibility and application process, and the pros and cons of the life insurance MassMutual provides.
In this review:
About MassMutual
MassMutual Life Insurance Company operates as the fourth-largest life insurance provider in terms of total premiums written.
The company is licensed to provide life insurance policies in all 50 states.
Unlike most other life insurance companies, MassMutual does not have shareholders. Participating policy owners and members share in company ownership, can vote with board members, and often receive dividends.
MassMutual paid out more than $1.7 billion in dividends to its policyholders in 2020.
Insurance and other financial products offered by MassMutual can help you keep your finances in good health. Besides insurance, MassMutual provides a broad range of financial products and services. Some of the other offerings include long-term care insurance, disability income insurance, retirement plans, annuities, and other employee benefits.
In response to the COVID-19 pandemic, the company also announced the availability of a free three-year term life insurance policy for any healthcare worker residing in Massachusetts or Connecticut.
The free life insurance carries a benefit of $25,000 for ages 50 and under and $10,000 for those ages 51 to 60.
MassMutual does allow consumers to apply for a direct term policy online. However, most sales of the policies are available through financial professionals rather than through agents or internet portals.
MassMutual Life Insurance Ratings
A.M. Best gives MassMutual the best possible rating for financial stability and the insurer’s ability to pay policy claims and other contractual obligations. The A++ superior overall rating recognizes the company’s strong performance record and favorable business practices.
In its 2020 U.S. Life Insurance Study, J.D. Power ranked MassMutual 10th out of 23 companies in customer satisfaction.
The study ranked life insurance companies based on pricing, communications, and life policy offerings.
Meanwhile, the National Association of Insurance Commissioners’ complaint index also gauges customer service. Due to the lower-than-average number of complaints against the company, MassMutual offers above-average customer service.
Life Insurance Products
MassMutual offers a variety of life policies: term, whole, and universal life insurance. Read on to learn more about each policy and find the best life insurance coverage for you.
MassMutual Participating Whole Life
The participating whole life insurance policy is a type of permanent life insurance. That means it lasts your lifetime. Your policy will earn a guaranteed death benefit. Your policy can also increase your death benefit and cash value with dividends it earns over its lifetime.
MassMutual Term Life
You can get affordable rates over a fixed range of 10 to 20 years with MassMutual’s term life insurance policies. If you pass away during the term life period, your family will receive a death benefit in a lump sum. You also can get the option to convert your term life insurance to permanent whole life insurance without a medical exam. Term policies offer a solution for parents looking to cover teenagers and young adults on a plan.
MassMutual Direct Term Life
This term insurance is the only type of policy MassMutual makes available on the web. The term life insurance online allows you to receive an immediate notification on whether you will get coverage. You get coverage options for a policy with a term of 10, 15, 20, 25, or 30 years.
This term policy targets people from ages 18 to 64. Direct term life insurance allows you to get term insurance benefits from $100,000 to $3 million.
Universal Life
The universal life insurance policies that MassMutual offers provide permanent coverage with flexible premium payments.
You can adjust the amount you pay on an annual basis if you have any cash value in the policy. Also, you can choose a policy with a benefit guaranteed to pay your family in a lump sum when you pass away.
Variable Universal Life
Variable universal life insurance is another form of permanent coverage. It offers flexible premiums and allows you to pick investment levels based on your risk tolerance.
You can select a level benefit or choose to accumulate cash value based on investments and premiums paid. Also, you can borrow from the cash value throughout your lifetime, but you may reduce your benefit by doing so.
MassMutual LifeBridge Program
Designed with lower-income parents in mind, this program offers a free $50,000 policy to go toward a child’s education in the event parents pass on. The following eligibility restrictions apply:
- Individuals from 19 to 42 years old
- A parent or legal guardian paying a benefit to a dependent under age 18
- Must be a permanent or legal U.S. resident
- Must have a family income of not less than $10,000 and not more than $40,000
- In good health
Life Insurance Riders
Riders allow you to customize your benefits from your insurance. Massachusetts Mutual offers the following rider options:
Accelerated Death Benefit
This rider allows you early access to a portion of your benefit if you are diagnosed with a terminal illness expected to result in death within 12 months.
Additional Insurance
This customization allows you to increase your benefit by paying over and above your premiums.
Guaranteed Insurability
You can purchase additional insurance at specified dates in the future without having to show a good state of health under this rider.
Waiver of Premium
Available on whole life coverage, this rider protects you in case you become disabled. It covers your premiums if you cannot pay due to a disability while ensuring your benefit stays in place.
Eligibility and Application Process
Most available plans from this provider will require you to speak with a professional financial advisor. However, the direct term plan provides immediate feedback on whether you receive coverage online.
If you have a pre-existing medical condition and are looking for guaranteed acceptance or a policy that does not require a medical exam, this provider has plans with these benefits.
Standard applicants will find this provider offers competitive rates. However, you may want to shop for quotes if you smoke or are a senior citizen. Some MassMutual rates run higher for smokers and older people.
Pros & Cons of MassMutual
People who are young and without a medical history can take advantage of a wide array of coverage and financial investment opportunities. However, older people and smokers will pay a hefty price to receive a benefit from this provider.
Pros
- Plans that offer dividends
- Convertible term options
- Online application and immediate approval on direct term plans
- Easy-to-understand language in your plan
- Plenty of helpful riders that allow you to customize your plan
- Opportunity to work with a company that is rated highly for financial stability
- Better-than-average service to customers
Cons
- Limited information online about plan details and riders
- Time limits to convert plan terms
- Limitation of purchasing a plan only through a representative instead of online
- Direct term plans that can increase rates after a medical test
- Rising rates for the elderly
- High rates for smokers
Please contact Life Insurance United directly for more information on any insurance products at 334-380-4188.