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Penn Mutual Life Insurance Review 2018

Aug. 15, 2018
Insurance, Life Insurance, Personal Finance
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at a glance

  • NerdWallet ranking: No. 7.
  • Average customer satisfaction ratings.
  • Quotes are not available online.

Overview

Penn Mutual Life Insurance Co. is owned by its policyholders, which means that customers who buy whole life insurance can share in dividend payouts when the company does well. The company set its 2018 dividend payout at $70 million. Founded in 1847, Penn Mutual sells life insurance through its national network of financial advisors and does not provide quotes online.

» MORE: The best life insurance companies

Find out more about each element that goes into our Penn Mutual review by clicking below.

NerdWallet rank: 7th

Penn Mutual ranks No. 7 out of 20 life insurance companies. NerdWallet’s ranking is based on a composite score that takes into account the company’s A.M. Best financial strength rating, J.D. Power customer satisfaction scores and the number of complaints against the company to state regulators, adjusted for market share.

A.M. Best financial strength rating: A+ (superior)

Penn Mutual’s financial strength is “superior,” according to ratings firm A.M. Best. It’s important to consider a company’s financial strength because it indicates an insurer’s ability to pay claims.

Consumer complaints: Better than the median

Penn Mutual drew significantly fewer than the median number of complaints to state regulators in 2017, compared to life insurers of its size.

The National Association of Insurance Commissioners calculates a “complaint ratio score” for insurance companies, which is based on the number of complaints to state regulators, adjusted for market share. The median score is 1, and a score of less than 1 means fewer complaints. Penn Mutual had a complaint ratio score of 0.04 for individual life insurance.

J.D. Power ratings: About average

Penn Mutual ranked 9th out of 24 life insurance companies for customer satisfaction in the J.D. Power 2017 Life Insurance Study. The company scored three out of five stars, or “about average,” in each of the study’s main categories.

Customer satisfaction category Penn Mutual's score
Overall satisfaction"About average"
Billing and payment"About average"
Price"About average"
Policy offerings"About average"
Interaction"About average"

More about Penn Mutual

Types of life insurance soldOther products and services
  • Term life
  • Universal life
  • Indexed universal life
  • Variable universal life
  • Whole life
  • Survivorship life
     
     
  • Fixed, immediate and variable annuities
  • Penn Mutual Coverage Options

    Term life: You can choose a term of 10, 15 or 20 years and can convert a portion or all of the coverage to a permanent life insurance policy. The annual price stays level through the term, but increases if you make the coverage permanent.

    Universal life: Three types of universal life insurance policies are offered, including indexed universal life, which lets you base the cash value growth on an index, such as the S&P 500.

    Variable universal life: The policy’s cash value is based on investments you choose. You can build your own portfolio from a selection of 24 investment funds or choose one of five diversified funds to match your risk tolerance.

    Whole life: Like all whole life policies, the cash value grows at a guaranteed rate. Because Penn Mutual is a mutual insurer, the policy has the potential to accumulate additional money in years when the company pays out dividends.

    Survivorship life insurance: A couple can both be covered under one whole life or indexed universal life policy. The death benefit is paid after the second person dies.