Are you currently in the process of applying for life insurance and are curious which companies are the best in the U.S.? Or have you been approved for a policy offered by MassMutual Life Insurance Company and are now just wondering if MassMutual Life Insurance Company is the right company for you?
Well if so…
You’ve come to the right place, because in this article we’re going to briefly discuss why we here at InsuranceBrokersUSA, feel that every individual who is seriously considering purchasing a life insurance policy needs to put MassMutual Life Insurance company at the top of their list of companies when considering which life insurance company may be the “best” for them.
What we would like to do in this article is highlight exactly why MassMutual Life Insurance Company is such a strong insurance company and then present our case on why, in addition to considering MassMutual Life Insurance Company, you should also consider what other options may be available to you.
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About MassMutual Life Insurance Company
History – Founded in 1851, Massachusetts was the very first home of MassMutual (hence the name) and is still important for the company with their headquarters located in Springfield.
Originally, the founder George Rice was selling life insurance in Connecticut but he soon decided to start a company of his own to serve his own city and state.
Eventually, it grew into a mutual company and today they employ over 7,000 people in the US and even have a team of 3,600 abroad.
Finances – Back in 2016, MassMutual was named in the Fortune 500 list (76th) with revenue figures of nearly $30 billion and total assets of $675 billion.
As a mutual company, the policyholders are very much in control and last year the company agreed to pay out $1.7 billion dividend to policyholders in 2020.
With these numbers in mind, you can see just how large of an insurance company MassMutual has become over the years.
Today, they stand as one of the most highly rated life insurance companies in the country and we may just see why with the products a little later. But first we have some official ratings for you to judge for yourself.
Every year, many different agencies work hard to assess each and every major insurance company so we can judge them on a level playing field. Nowadays, we are lucky enough to have access to all of this information so we can make the right decision for our life insurance policy. Below, you will see the ratings for MassMutual from some of the most respected companies.
MASSMUTUAL Current Ratings as of March 2020
- A.M. Best – A++
- SP – AA+
- Moodys – Aa2
- Fitch – AA+
- Comdex ranking – 98
- BBB – A+
As you would expect for a company so popular and with so many members, the ratings for MassMutual are impressive to say the least.
From a financial point of view, MassMutual is more than secure and this is important considering we are relying on them to last the test of time so the death benefit can be paid to the beneficiary when we pass away.
Whenever we open a life insurance policy, we are gambling on that company to survive 10, 20, 30 years and more so financial security is pivotal and MassMutual fits the bill perfectly.
After the finances, we generally see an importance in customer service because this allows all issues to be fixed and questions to be answered.
With MassMutual, they have dedicated phone lines as well as email addresses and more which has led to an A+ Better Business Bureau score.
With the BBB, they review thirteen different categories from complaints to their ability to honor commitments and an A+ score means they sit above 97 out of 100!
With many life insurance companies these days, they have expanded beyond the realms of their main product and the same can be said for MassMutual.
For example, they now have annuity products alongside disability insurance, workplace benefits, investment advice, long-term care insurance, trust services, and wealth management.
Therefore, it is a really great company to get involved with as you can receive different services whenever required.
For some, they will have a life insurance policy in place while at the same time requesting their wealth management and investment services be serviced as well.
When all of these offerings are under one roof, it keeps everything simple so this is something to consider.
That being said …
We are focusing on life insurance and life insurance alone today so we have compiled information regarding each policy down below.
MassMutual Life Insurance:
Term Life Insurance – To start, we have the level term life insurance which lasts for a certain period of time before expiring. With MassMutual, you have an option of 10 or 20 years as well as a special one-year policy if you need covering for a certain event in your life.
Available to those aged between 18 and 75, the minimum death benefit currently sits at $100,000 with the maximum amount dependent on the applicant.
Although you won’t have an investment component to your insurance, this coverage will work perfectly if you’re trying to cover a mortgage or a particular loan.
For some, they even choose a 20-year policy that ends once their child goes off to college.
Once they become an adult, the coverage is no longer necessary so there are occasions where this policy comes in handy (including mortgage coverage).
Overall, you will find other companies going right up to 30 years but the pricing here is respectable and the policy is superb.
Whole Life Insurance – If you need permanent life insurance, MassMutual has a dividend paying whole life policy available to everybody that qualifies from birth until the age of 90.
With a minimum death benefit of $10,000, you can normally meet your needs without even touching a potential maximum limit and the interest rate on your investment part of the policy will be around 4% (but could vary). Therefore, the cash value will build quite quickly as long as you keep paying your premiums.
With this policy, the amount of customization is one of the biggest benefits since you can choose between a flexible or fixed death benefit as well as flexible, single, or level premiums.
Furthermore, you can opt in for dividend options and add various riders (which is something we will discuss at the end).
A primary benefit of MassMutual Whole Life Insurance is the company’s solid track record of paying dividends for over 100+ years. You can elect to use your dividend in a variety of ways.
Dividend Payment Options include:
- Pay Down an Existing Policy Loan
- Pay Future Premium Payments
- Paid Up Additions
- Keep With Company Earning Interest
- Cash Out
Universal Life Insurance – Once again, this policy starts at birth and is available up to the age of 80 with a minimum death benefit of $50,000.
There is the same option between guaranteed and level death benefit which will affect your ability to dip into the cash value later in life. Although you won’t be guaranteed a rate of return (like the 4% with whole life policies), MassMutual policies “generally” see a positive return (generally, but it not guaranteed).
Finally, there is also a variable universal policy which means that your investment fund will be tied to a particular bond or stock mutual type investment.
With a VUL policy, the upper age limit is 85 and the maximum death benefit is $50,000.
Since you will be relying on the market, your return percentage will vary from one year to the next.
Life Insurance Riders
With every policy, you will also have a choice of riders and these are small caveats you can place on your policy in case of certain events. For example, one of the most common riders is ‘Waiver of Premium’ and this allows your premium to be waived if you become seriously ill or no longer in a position to pay so this will prevent you from losing the policy.
Term Life Insurance – With the term life policy, there are two main riders on offer with Waiver of Premium and a Disability option.
Whole Life Insurance – Here, there is more flexibility since you can add Guaranteed Minimum Cash Value, Waiver of Premium, Disability, Guaranteed Insurability, and Spouse Protection. With the last one in particular, this gives you a chance to protect loved ones even more.
Universal Life Insurance – Finally, the universal life policy offers Child Protection, Waiver of Monthly Deduction, Survivorship Option, Disability, Guaranteed Minimum Cash Value, and Guaranteed Insurability. If you decide to go for the variable policy, you will also have Living/Accelerated Death Benefit as an option.
And there you have it…
As you can see, MassMutual Life Insurance Company has a pretty strong portfolio that is backed by an outstanding reputation, but is it the right life insurance company for you?
You see when it comes time to determining “which” life insurance company is going to be the “best” company for you, choosing a highly reputable company is only half of the battle!
This is because…
When it comes to purchasing a life insurance policy the “type” and “rate” that you can qualify for is going to vary significantly based on the underwriting guidelines that each life insurance company chooses to use in their underwriting practices.
Which means that…
Even though MassMutual Life Insurance Company may be the “perfect” life insurance company for some, it may not always be the best for everyone. This is because insurance companies are going to consider a wide range of factors into consideration when determining what “type” of insurance you can qualify for and what price you’ll be expected to pay.
Factors such as your:
- Height and weight,
- Pre-existing medical conditions,
- Current medications,
- Family medical history,
- Driving record,
- Occupation (high risk?)
- Hobbies (are they dangerous?),
- Tobacco use,
- Marijuana use,
- Previous felony or misdemeanor convictions,
So, is MassMutual Life Insurance Company the right life insurance company for you?
They could be, we just won’t know and neither will you until you compare them to someone else.
And here’s the good news…
If you’d like to have an opportunity to compare what you’ve been offered by MassMutual Life Insurance company with a bunch of other life insurance companies, we can help!
And if it turns out MassMutual is the “best” for you awesome! You’re all set! But if they’re not, then let’s help you find that company that is right for you!