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Mutual Trust Life Insurance Review

mutual trust life insurance review

Mutual Trust is one of a small group of life insurance companies offering dividend paying whole life insurance. In the following Mutual Trust review, we will take a closer look at the company, its history, products and financial ratings, to help our readers determine if MTL is the best choice for them.

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About Mutual Trust Life Insurance

Formed in 1904, Illinois-based Mutual Trust Life Insurance Company markets itself as “The Whole Life Company,” and whole life insurance is unquestionably the company’s focus.


Since they are a mutual company and they offer dividend paying whole life, many of the company’s policies are designed for use with the infinite banking concept (IBC).

And as a testament to the company’s focus on IBC, the company even mentions infinite banking on their website, which is unique among life insurance companies.

Pan America

Mutual Trust’s parent company, the Pan-American Life Insurance Group has been around since 1911, marketing life insurance, annuities, and other financial products and services throughout North America, Latin America, and the Carribean.

Mutual Company

Unlike many of the biggest life insurance carriers that are shareholder-owned and publicly traded, Mutual Trust is organized as a mutual company.  That means that the company is formally owned by its policyholders.

Mutual companies generally have a better reputation for customer service than their corporate competitors (though that can vary a lot from company to company).

More practically, participating life insurance policies issued by mutual companies are eligible for dividends, which are basically a small slice of profits distributed to policyholders.


Life insurance dividends are not guaranteed, and not all policies qualify.  But dividend payments can be a really nice benefit for policyholders able to receive them.

Mutual Trust has an excellent track record for paying dividends, with an ongoing streak of over 100 consecutive years.  And nearly all of its policies are dividend-eligible.  So, for consumers prioritizing dividends, Mutual Trust is worth a look.

Mutual Trust issues life insurance and annuities in D.C. and every state but New York.  Products are marketed through a network of independent agents and financial planning professionals.

Mutual Trust Financial Ratings

A.M. Best: A
Moody’s: NR
Fitch: A
Comdex Ranking: 79

With a 79 rating from Comdex, Mutual Trust is in the top quarter of the top rated U.S. life insurance companies.

The A rating from A.M. Best is a solid. And Mutual Trust has seen its rating increase in recent years.  That’s a sign that Mutual Trust is growing and that the experts at A.M. Best think Mutual Trust is doing a good job managing its financial resources.

The latest annual report shows that Pan-American Life (Mutual Trust’s parent company) garnered pre-tax earnings totaling $109 million in 2019.  The group’s total assets crossed the $6 billion threshold in 2019.

Compared to some of the biggest names in the insurance industry, that makes Pan-American Life and Mutual Trust moderate-sized, or even on the small side for top companies.

Nonetheless, the company has a strong track record, and policyholders face very little risk that Mutual Trust will be financially unable to meet its policy obligations in the foreseeable future.

Mutual Trust Consumer Ratings:

Mutual Trust is not currently accredited by the Better Business Bureau, though the company does hold an A+ rating from BBB—meaning it usually responds timely to complaints lodged with BBB.  The customer reviews provided on BBB’s site provide too small of a sample size for a fair assessment of the company.

What Products Does Mutual Trust Offer?

Mutual Trust offers term life, whole life, and annuities.  Annuity options include single-premium deferred annuities and flexible-premium deferred annuities.

Additionally, Mutual Trust’s parent company, Pan-American Life, offers group and individual accident and health insurance and employee benefits administration for businesses.

Life Insurance from Mutual Trust:

Mutual Trust keeps its life insurance portfolio fairly straight-forward.  You can get term life, or you can get whole life.  There are no universal life products on offer.

Mutual Trust Whole Life Insurance:

Whole life insurance is Mutual Trust’s specialty, and they have four different policy options available.

All four feature a guaranteed-for-life death benefit, fixed premiums, and cash value that grows tax-deferred.

All four policies are participating insurance policies, which means that policyholders are eligible for dividends.

Horizon Value

This is whole life insurance designed for policyholders who want to prioritize cash-value accrual.

The policy is designed to allows for earlier cash-value accumulation with comparably lower premiums.

A built-in accelerated benefits rider lets the policyholder access policy proceeds early if the insured is diagnosed with a critical or terminal illness.

Horizon Guarantee

A whole life policy oriented toward the guaranteed death benefit.  Cash value grows slower than whole life policies, but you get a higher death benefit.

Basically, you get higher coverage for a comparably low premium, but sacrifice some early cash-value growth.  The accelerated benefits rider comes standard.

Horizon Blend

A whole life insurance policy with supplemental term coverage for 20 years. The structure allows for higher coverage early on, while still building long-term cash value.

The term portion of the policy can also be converted to whole life without additional underwriting.   The accelerated benefits rider comes standard with Horizon Blend.

Horizon Legacy

A single-premium whole life policy designed for estate planning.  Rather than paying fixed premiums for life or for a period of years, the policyholder pays a single lump-sum premium up front.

The structure can both build additional wealth for an estate and allow for tax-efficient transfer to heirs.

Mutual Trust’s whole life policies are available with a variety of supplemental riders.  Options include

  • Two paid-up addition rider varieties (giving the policyholder the right to purchase supplemental coverage),
  • a term rider (providing supplemental term coverage for ten years),
  • disability riders (waiving premiums if the insured becomes disabled),
  • a guaranteed purchase option (allowing the policyholder to purchase additional permanent policies at specified dates without underwriting),
  • an accidental death rider (increasing coverage if the insured’s death results from a qualifying accident), and
  • a children’s rider (providing ancillary coverage for the insured’s children under age 20).

Term Life Insurance from Mutual Trust:

Mutual Trust offers a single term policy, SelecTerm, available with initial terms of 10, 15, 20, or 30 years.

Premiums are fixed during a policy’s initial term, and then coverage can be renewed annually (through age 98) once the initial term concludes.

Term life premiums increase, often significantly, upon each renewal.

SelecTerm policies include a conversion option, allowing the policyholder to convert the term coverage to whole life without additional underwriting.  The conversion option can be exercised until the initial term expires or the insured reaches age 70 (whichever comes first).

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