Are you in the process of applying for life insurance and curious about the best companies in the U.S.? Or have you been approved for a policy with MassMutual Life Insurance Company and are wondering if it’s the right fit for you? If so, you’ve come to the right place. In this article, we’ll discuss why InsuranceBrokersUSA believes that MassMutual should be at the top of your list of life insurance companies to consider.
We’ll highlight what makes MassMutual a strong insurance company, and also present other options you may want to consider. Our goal is to help you make an informed decision about which life insurance company is the best fit for you.
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About MassMutual Life Insurance Company
History – MassMutual was founded in 1851 in Massachusetts, which is still an important location for the company today with its headquarters located in Springfield. Originally, the founder George Rice sold life insurance in Connecticut but decided to start his own company to serve his city and state.
Over time, the company grew into a mutual company, and today it employs over 7,000 people in the US and has a team of 3,600 abroad.
Finances – In 2016, MassMutual was named 76th in the Fortune 500 list, with revenue figures of nearly $30 billion and total assets of $675 billion. As a mutual company, policyholders have significant control, and the company agreed to pay out a $1.7 billion dividend to policyholders in 2020.
These numbers demonstrate the tremendous growth MassMutual has achieved over the years. Today, it’s one of the highest-rated life insurance companies in the country. We’ll dive into their products shortly, but first, we’d like to share some official ratings so you can assess the company 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+
MassMutual’s impressive ratings reflect its popularity and extensive membership. From a financial standpoint, MassMutual is highly secure, which is crucial for policyholders who rely on the company to pay out the death benefit when the time comes.
When we purchase a life insurance policy, we’re essentially placing a bet on the company to survive for decades to come. Therefore, financial stability is a key factor, and MassMutual meets this requirement perfectly.
Aside from finances, customer service is another important aspect, as it allows for timely issue resolution and question answering. MassMutual offers dedicated phone lines, email addresses, and more, which has earned them an A+ rating with the Better Business Bureau (BBB).
The BBB evaluates companies based on thirteen different categories, including their ability to honor commitments and handle complaints. With an A+ score, MassMutual ranks in the top 97 out of 100 companies.
Like many life insurance companies today, MassMutual has expanded its offerings beyond its core product. They now offer a range of additional services, including annuities, disability insurance, workplace benefits, investment advice, long-term care insurance, trust services, and wealth management.
This makes MassMutual an attractive company to work with, as you can access different services as and when needed. Some customers may have a life insurance policy in place while also requesting wealth management and investment services from the same company. This simplifies matters, so it’s worth considering.
However, for the purposes of this article, we’re focusing solely on MassMutual’s life insurance policies. We’ve compiled information on each policy 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,
While MassMutual Life Insurance Company is a highly regarded and well-established insurance provider, it’s important to remember that no one company is perfect for every individual. As we’ve highlighted in this article, MassMutual has a strong financial standing, excellent customer service, and a wide range of products and services. If these factors align with your needs and priorities, MassMutual may be an excellent choice for you.
However, it’s always wise to shop around and compare options before making any important financial decision. Every individual’s situation is unique, and what works for one person may not work for another. By researching and comparing multiple insurance providers, you can make an informed decision and find the company that is the best fit for your specific needs and circumstances.
So, while we highly recommend considering MassMutual Life Insurance Company, we also urge you to explore other options and to make an informed decision based on your individual needs and preferences.